I write a lot in these blogs about things the Entrepreneurial Operating System (EOS) does well. Just to change things up, let me talk a little about an area where EOS does NOT fit, and that is early stage start-ups.
A few times in my career as an EOS implementer, I have had the opportunity to discuss EOS with a very early stage start-up. I had to tell them they aren’t ready for the structure and discipline that EOS provides. That’s because the company is still in what I call “Blob Mode”.
That term isn’t a dig at start-ups. Blob Mode is a necessary stage in many start-up companies. It is the stage where everybody does a little bit of everything. One day the CEO is doing sales. The next she is on-boarding a new customer. The next she is writing web content. And that variance of duties doesn’t just apply to the CEO, everybody in the company is doing the same thing.
Early in the life of a company that’s just how it works. It’s not just the best way to get things done, I believe that Blob Mode is actually a very important stage in the development of a business. It is a great way for a company to keep things fluid as it invents itself – often through trial and error – to find its pathway to success. It is also a great way for people in the company to find out where their talents can add the greatest long-term contribution to the business.
This is very analogous to how all of us grow – from infancy to childhood to adolescence and finally into mature adulthood. And like the human organism, the maturing business will at some point encounter growing pains. In EOS, we call that “hitting the ceiling”.
Successful start-ups hit the ceiling when Blob Mode just doesn’t work anymore. Early on when there are only a few people in the company, letting everyone just do whatever is necessary at the moment really is the best way to get things done. But as the company grows and more and more people become involved in the company’s operations, confusion begins to creep in. People can’t seem to get out of each other’s way. Even simple things become frustrating for employees and customers. That is the point when the company needs to move beyond Blob Mode. And that is when the company needs the structure, discipline and accountability EOS provides.
I have been lucky to help a few companies implement EOS just as they emerge from Blob Mode. To these companies, the structure and discipline EOS introduces may seem uncomfortable at first. But Leadership Teams quickly learn that alignment in vision, discipline in execution, and clarity in accountability are essential to stabilizing a rapidly growing business. And out of the Blob emerges a healthy, thriving, scalable business.
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