The EOS Model®: Data Component™

THE EOS® MODEL

The EOS Model® provides a visual illustration of the Six Key Components™ of any business that must be managed and strengthened to be a great business. This model applies to big and small businesses alike, in any industry.

DATA

The third key component of any business is the Data Component™. This means cutting through all the feelings, personalities, opinions, and egos and boiling your organization down to a handful of objective numbers that give you an absolute pulse on where things are.

Data supports your company’s ability to have productive discussions and decision-making. You should run your company and respective departments using a handful of metrics to indicate the present, identify potential issues, and forecast the future. Choose to use the data to guide discussions and decisions instead of using assumptions, opinions, and emotions.

SCORECARD

The Scorecard tool contains the metrics that show performance, identify and solve problems, and remove subjectivity from communication. It should include the following:

• Who – the person responsible for each of the metrics
• Measurables – the 5 to 15 company metrics that are recorded weekly on the Scorecard
• Goal – the target number that must be reached every week
• Date – the week that you are reporting on

Imagine you’re on a deserted island.
A message in a bottle washes ashore with a sheet of paper with numbers on it. Those numbers tell you exactly how the business is doing back home.
What would those numbers be for your business?

It should give you the ability to not only observe current operations but to predict and plan key performance indicators (KPI’s).

PRO TIPS

• Start with a small set of “weekly activity-based numbers” and not high-level lagging indicators.
• Proactively forecast, identify issues, and take action in the right direction.
• Flag categories and numbers that are off track to be aware of and take corrective action.
• Evolve the Scorecard as the metrics that you track can change.
• It takes an average of 90 days to fall in love with a final version.

MEASURABLES

Everyone in the company should have something they do to contribute value to the organization that is measured consistently. Numbers provide for open communication with advantages to everyone in the company having a trackable number. Simply put, data helps:

• Cut through subjectivity.
• Create accountability.
• Create clarity.
• Create commitment.
• Create competition.
• Produce results.
• Create teamwork.
• Help you solve problems.

Want to run a friction-free business?

Contact Andrea Schlapia to learn how the Entrepreneurial Operating System® can transform your team, your profits, and your life.