Blog Post

Why Are You Talking?

  • By Michael Halperin
  • 13 Sep, 2021

One of my favorite parts of being an EOS Implementer is facilitating my clients through IDS (Identify-Discuss-Solve), the tool we use to address issues at their root so they go away forever. I facilitate or observe IDS sessions with my clients in our Quarterly Pulsing Sessions and on Day Two of our Two-Day Annual Planning Session.

This gives me an opportunity to help them hone their IDS skills, which are crucial to moving their business forward. As I facilitate IDS sessions with a Leadership Team (or observe while they facilitate themselves) I sometimes remind them of an important question:

“Why are you talking?”

At first glance this might seem like a somewhat brash rhetorical question with the message “please be quiet”. But that is decidedly NOT the point.

“Why are you talking” is a question everyone should ask themselves reflectively, honestly and frequently. In an IDS session, there really is only one reason for someone to be talking: to help bring the current issue to resolution. Any discussion that is helping us down that path is valuable. Any discussion that isn’t getting us closer to a “Solve” is not.

When describing highly effective IDS sessions, I sometimes refer to the Question to Statement Ratio. That is, how much of our interaction is in the form of questions designed to surface key information and find a solution, and how much is simply sharing information which may or may not be focused on (and might even be distracting us from) finding a resolution.

That isn’t to say statements don’t have value, they very often do. But only if they are relevant to the issue at hand.

For instance, I sometimes find a team that has essentially solved an issue continuing to share information and opinions about why that is the right solution. While emotionally comforting, that discussion consumes time that could be better spent moving on to the next issue.

Other times, they share experiences or dive deep into intricate details that are tangential to solving the issue.  At the least, it delays the team in getting to a Solve. At worst, it re-directs the team’s focus to a completely different topic, diverting the attention (and time) of the group from the issue at hand. My clients often refer to this as “squirreling” (think of the dog that sees a squirrel and bolts after it, losing focus on everything else that matters).

In effective IDS, every question or statement is focused on the higher purpose of the discussion: getting to a Solve. So effective Leaders engage IDS while asking themselves an important question:

“Why are you talking”?

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By Michael Halperin 30 Oct, 2022

On the morning of my first session with a new client, I help them build out the structure of their Leadership Team using the Accountability Chart tool. When we define the Roles for a given Function (Roles are the key things for which the Leader in that seat will be held accountable), I start by asking "does this Function have direct reports?"   If the answer is "Yes'", than the first Role we list for that Function is ALWAYS "LMA", which stands for Lead, Manage and Accountability.  

Occasionally I am asked why this Role is always listed first. The answer is simple: if you are Accountable for LMA, there is NOTHING you can possibly do that matters more.  

Why is that?

If you have LMA accountability, your job is to build the right team of people, then ensure that team works together as a well-oiled machine. And LMA is your "compounding factor".  

I explain it like this:

There are 168 hours in a week (24 x 7). If you work 168 hours in a week, you will kill yourself. I don't mean that figuratively, I mean it quite literally (and if you don't believe me, check out Dr. Matthew Walker's excellent book Why We Sleep ).  

But a team of four people working a standard 40-hour work week can comfortably deliver 160 hours.

I don't care how smart you are, how talented you are, how dedicated you are or how hard you work, you simply cannot match the power of:

  • The right team

  • Doing the right things

  • The right way

  • With a shared understanding of the end goal

  • And a strong culture of accountability

That is the very definition of the aforementioned "well-oiled machine".

Creating an organization where every team is a well-oiled machine is the dream of every entrepreneur. And it absolutely IS possible – it is the essence LMA.  

So if you are Accountable for LMA, there is NOTHING you can possibly do that matters more.  


By Michael Halperin 28 Mar, 2022

In the period from mid-October until mid-February, EOS Implementers are immersed in what we call "Annual Season", the time of year when we lead many of our clients through their Two-Day Annual Planning Sessions. A major component of the Annual Planning Session is working on the health and well-being of the Leadership Team.

It is also a time for me to reflect on the healthy – and less healthy – behaviors I've seen over the years I have been an EOS Implementer. I've started calling one of these less healthy behaviors the "Sorry But".

This behavior is particularly poignant for me, because of some important feedback I got from a mentor many years ago. She told me an apology ends with "sorry", followed by a period. Then silence. It doesn't end with "sorry" followed by a comma, then "but……….".

The Sorry But often happens after someone is called out for out-of-bounds behavior. Maybe it's a disrespectful word or phrase issued during the heat of battle as the team works through an issue or situation. The person who is the object of that comment feels unvalued or disrespected. If that happens on a Leadership Team and isn't address and resolved, it erodes trust across the entire team.

When called out for hurtful behaviors, Sorry Butters often are quick to apologize. At first, it seems like we are hearing a sincere apology that will allow the team to move forward in a healthy way. Until we hear the Sorry But.

It might sound like this: "Yes, sometimes I get emotional and I say things I shouldn't. I never should have said that in that way. Really, I am working on it and trying to do better. Thank you for calling me out, you are helping me. I'm really sorry. But, the only reason I reacted that way is that you………"

A classic Sorry But.  

Ironically, people who issue the most Sorry Buts often consider themselves to be very open and vulnerable. "Listen, I know I'm not perfect", they say. "I'm always admitting my short-comings, and I'm always quick to apologize for my mistakes." Except those admissions and apologies aren't sincere. They are Sorry Buts.

What they don't realize is that a Sorry But isn't vulnerability and it isn't an apology. It is a back-handed justification. And what the recipient of the Sorry But hears is "Sorry, not sorry".   Rather than helping soothe the original wound, it actually re-opens the wound….and pours in a little salt. And that has a very detrimental effect on Trust across the entire Leadership Team.

Truly vulnerable people learn how to apologize sincerely. As a mentor once told this reformed Sorry Butter many years ago, "Sorry" should be followed by a period. Then silence.


By Michael Halperin 19 Jul, 2021

In our first session with a new client, Focus Day, we tell the story of a hiker who takes a perilous fall and ends up clinging precariously to a vine. The point of the story is that you'll be hanging precariously forever until you find a way to let go of that vine. "Letting Go of the Vine" becomes a metaphor for delegation: our willingness to let go of things that just aren't a good use of our time.

I hit this point again later in the EOS Process when I teach a tool called "Delegate and Elevate". The tool helps Leaders identify those things that are on their plate but would be better delegated to someone else, so those Leaders can maximize the value they provide to the organization.

Sometimes Leaders I work with give me all the reasons they can't let those things go. Sometimes those reasons are legitimate. But sometimes the big barrier is simply the Leader's willingness to Let Go of the Vine.

"They can't do it as well as I can!" is a popular excuse I hear. My answer is always the same:

"So what?"  

If someone else can do it 90% as well as you, or 80% or even 70%, what will happen? Will you lose customers? Will you lose money? Will your business fail? Often as not, it doesn't need to be perfect ("perfect" defined as however well you do it).

Part of the problem is that we've all been told a terrible lie all our lives: "If you want something done right you have to do it yourself". Not only is that not true, it is a recipe for a miserable life.

A business simply can't scale if its leaders are bogged down in menial tasks that prevent them from getting to more important work. So I implore Leaders to decide how good is "good enough"? Where do you set the bar? All you need to do is find someone who has the ability to get over that bar, and spend enough time with that person to teach them how to do it.

"That will take longer than if I just do it myself!" I then hear. Perhaps that is true….the first time. But if it is something you do all the time, then that training is an investment in YOUR future. Because the second time that person will do better, and will need less of your help to do it. And the third time will go even better. Soon they will be doing it as well as you could – and you won't be involved at all.

Moreover, that task which is a mundane annoyance for you may be a stretch assignment for the person you delegate to, which may excite and motivate them while giving them the opportunity to grow.

This is why "Delegate" is one of the Five Leadership AbilitiesTM we teach and stress in EOS. But delegation only works when Leaders are willing to Let Go of the Vine. What Vines should YOU be letting go of?

By Michael Halperin 29 Jun, 2021

One of the most critical things for any business is creating a Great Team. In EOS, the People Component is all about building a great team, what we call "getting the Right People in the Right Seats". In a recent post, I talked about cultural fit – what we call "Right People". Today, I'd like to talk about how we get those Right People into the Right Seats. This brings up what a question that should be obvious, but is often overlooked. That is, how do we know exactly what the Right Seats are ?

You see, when leaders gauge how well an employee is performing, the yardstick for measurement is often based upon the way that particular person does that particular job, not whether that person is doing what the company actually needs out of that seat!

Every leader wants to put the right person to put into every seat. But the reality is that once they do, they often shape the seat to fit the person. So when I ask a Leadership Team "what do you need out of the person in this seat", they often begin by telling me what the current owner of the seat does. But that isn't the question I asked. I asked "what do you need out of the person in that seat?". And it may or may not be what the current owner of that seat does today.

This is what makes defining the Right Seats so hard. It is natural for us to think about our organization through the lens of the people we already have. To overcome that bias, we use an approach we call "Structure First, People Second". When we begin building out a company's Accountability Chart (the tool that defines the right structure for the organization – the very definition of what the Right Seats are), we begin by taking the people out of it. We put all the people on the sidelines as we begin the exercise – no one in the organization has a job. That eliminates the bias of "they way things have always been."

From there, we determine what seats are needed going forward.  Then we define exactly what we want to hold each seat accountable for. Only after we've done those two things can we go back to those people we put on the sidelines and find out who REALLY fits that seat.

For someone to fit their seat three things MUST be true. They have to:

·       Get It – This means the person is genetically encoded to do this job – they are just wired that way. If you've ever referred to someone as a "born salesperson" or a "born engineer" you know exactly what this means

·       Want It – They've got to be excited to do the job. You may have someone who was been born to be an engineer, but they've been in that role for 36 years and they are just sick of it. They don't want it anymore

·       Have the Capacity to Do It – They are able to meet the volume and quality requirements of the job with the resources available (including time)

The goal is to get EVERY person in your organization into the Right Seat. Imagine how much fun it would be to part of an organization where everyone around you is great at what they do. This isn't utopia – I work with businesses that have made this reality, and it is the standard every business should strive for.   Your business – and your people – deserve no less.

By Michael Halperin 01 Jun, 2021

EOS' Proven Process begins with three full-day sessions with the Leadership Team. In the first, Focus Day, I teach the Leadership Team the EOS tools that lay the foundation for execution – what we call Traction®. In the ensuing two sessions – which occur 30 and 60 days after Focus Day – we review and refine the team's use of the Focus Day tools and also work on building out the company vision. Herein lies part of EOS' secret sauce. We call it "Traction before Vision". Truth be told, some Leadership Teams find it a little counterintuitive. In the interests of "open and honest", I will confess I was among those skeptics back when I started implementing EOS in my own company.

"Why would we start executing before we fully define exactly where we are going?" I asked my EOS Implementer, Ed Callahan. Ed just smiled and said "Trust me….you'll understand in 60 days". I trusted him and, boy, was he right!

It could be argued that Vision Building can be done pretty quickly. However, once we have a vision, then what? The reality is that most teams don't have the tools, the discipline, the sense of accountability and the rhythm of working together as a Leadership Team to execute on their vision.

Without a solid foundation of execution (Traction), the team would leap out of the starting gate and go nowhere fast. They'd quickly lose momentum and their vision exercise would become just another thing they tried that didn't work.

That's why we start with Traction first. In Focus Day, the team learns the basic tools of Traction. They learn to execute with discipline. They learn to hold each other (and themselves) accountable. They establish a steady rhythm of working together as a healthy, functional, cohesive Leadership TEAM. It takes about 60 days to get there – just the amount of time that elapses while we build out the vision.

So when Vision Building completes, two critical things come together at exactly the same time: the team is tightly aligned around their vision AND they have the muscles they need to execute on the work needed to make their vision real.

There is an old Chinese proverb that says "if you want to go fast, go slow". By taking those 60 days to develop the ability to gain Traction – concurrently with Vision Building – we lay the foundation for the Leadership Team to come out of the starting gate fully aligned around their vision AND ready to run Full Speed Ahead on the journey of turning their vision into reality.

By Michael Halperin 04 May, 2021

In our first session working with a new organization, we explain that being a great Leadership Team is a lot like being great parents (acknowledgement here to Dr. Thomas Gordon and his book Parent Effectiveness Training ). We teach that great Leadership Teams – like great parents – have just a handful of rules.

Later in the EOS process, I facilitate Leadership Teams to discover their Core Values. Core Value in EOS are all about culture – a bulletized list of what is most special about the culture of an organization. Core Values are that handful of rules – the ones everyone in the organization must follow. The Right People for any organization are the ones that live up to the organization's Core Values.

But what about those who don't?

When you tell your organization your Core Values are the rules everyone must follow, 100% of the people in the organization will try. Those who can make the trip will. Those who can't make the trip will let you know, by backsliding to behaviors that run contrary to the Core Values.

Building culture takes careful and consistent support from the Leadership Team. Leaders need to clearly explain what each Core Value means, and do so frequently. They need to call out role model behavior when someone in the organization exemplifies a Core Value, and also call out (privately, of course) when an individual's behavior falls short.

I often say "once is an accident, twice is a coincidence, three times is a pattern." When someone's behavior consistently fails to live up to your Core Values, they are telling you they just don't fit your culture. That individual is the Wrong Person for your organization.

When people don't fit, you MUST act.  The people around those Wrong People see the bad behavior and know they don't belong there. So if you keep Wrong People around, you are undercutting your own credibility. You must "walk the talk".

But also think about what it is like for that Wrong Person. As you continue building your culture, those Wrong People feel left out, as they are increasingly surrounded by people who DO fit your culture. It feels bad to know you are somewhere you just don't belong. Thankfully, Wrong People often leave on their own accord. But when they don't, good leaders take the steps necessary to help their Wrong People see they don't fit and ultimately help them – voluntarily or not – out of the organization.

That process is never easy for any leader. However, it is the right thing for the organization and, ultimately, for that employee as well. You are giving them the opportunity to find someplace where they fit better. Someplace where they will be happier.

So helping them out of the organization really is helping THEM out in the long run.

By Michael Halperin 05 Apr, 2021

The journey I lead with my clients is to help them become at least 80% strong across the six key components of their business: Vision, People, Data, Issues, Process and Traction.

Recently, a client proudly proclaimed themselves to be 80% strong in their People component because they had run the People Analyzer (the tool that assesses whether employees are the "Right People" for the organization, and if they are in the "Right Seat") and found that over 80% of their people are Right People/Right Seat (RP/RS).

I had to deliver some disappointing news.

Your strength in the People component is NOT in direct relation to the percentage of people who fit your culture (Right People) and who "Get it", "Want it" and have the "Capacity to do it" (GWC) their role in the company (Right Seat).

That is because of the Ripple Effect. That is, even one person who isn't RP/RS has an impact far beyond themselves.

For instance, let's imagine you have an employee who simply doesn't fit your culture. That person probably knows they don't fit, and as a result they may be quietly undermining the Leaders' efforts to get everyone to fit the company's Core Values (the very definition of the company's culture). They will be the ones whispering to others that Core Values don't matter, that it is all fluffy stuff, and predicting the Leadership Team will soon move on to the next "flavor of the month". Those people are toxic and they bring everyone around them down. Moreover, when Leaders tolerate someone like that within the business, it leads "Right People" employees (who can plainly see who doesn't fit) to question Leadership's commitment to their own words.

Likewise, when one person doesn't fit their seat, it impacts the productivity and morale of the people around them. When “Wrong Seat” people underperform – missing deadlines, producing sub-standard work, needing help from others who have their own work to do – it prevents the "Right Seat" people around them from being as effective as they can be. And when those people are less productive, the people with whom THEY interact feel it, too. Again, the Ripple Effect.

The goal is to get EVERY person in the organization to be RP/RS. If you have 40 people, then 40 out of 40 have to be Right People AND Right Seat. Everybody has to have both.

Now, getting to 100% RP/RS is hard. And because people's lives change, staying at 100% RP/RS is also hard (one of my clients predicted that as soon as they get to 100% RP/RS, someone's spouse will be transferred across the country). The point is that you MUST work hard to address all your Wrong Person and Wrong Seat issues.

There is no magic mathematical formula to tell you what percentage of your people must by RP/RS for you to be 80% strong in the People component, but it is a good bit higher than 80% – much closer to 100%. This is why I always stress to my clients how important it is to address their people issues quickly and directly. Because the Ripple Effect will amplify the impact of those who fall short.

By Michael Halperin 15 Mar, 2021

Vision in EOS is about alignment – making sure everyone on the Leadership Team and, ultimately, everyone in the organization is crystal clear where the organization is going and how it will get there. During Vision Building, we answer 8 questions that together define the company's vision, providing that alignment. One of those eight is what I call the Finish Line to the Marathon: the 10-Year Target.

In his book Good to Great , Jim Collins tell us that great companies are great goal setters. And it begins with what he calls a BHAG: a Big, Hairy, Audacious Goal.   The 10-Year Target is a company's BHAG. But it is also much more than that.

When you cascade your vision down through your organization, the 10-Year Target does two very important things. First, it makes sure that everyone is marching in the same direction. In every organization, there are lots of important goals. But the 10-Year Target is one REALLY BIG goal….the one thing everyone in the organization needs to support and align to.

In many organizations people may have different and varying ideas about what the organization should do (and some of those ideas are driven by natural, ambitious self-interest).   The 10-Year Target ensures that all of those ideas and ambitions are aligned to a single, common purpose. If someone's pet project is going to accelerate the company's ability to achieve this one, overarching goal then tell them to put their ears back and run! But if it isn't, then they need to step back, re-align and get on board with where you are going.

The second thing a great 10-Year Target does is give people the energy to march. The 10-Year Target should be aspirational AND inspirational. It should have an "AHA" effect that leads the "Right People" for your organization to think "Yeah, I want to be part of a company that does that" (it also can help the "Wrong People" realize they don't belong….but that's another Blog).

Every organization has its ups and downs. It is often easy to keep people moving forward when things are going well. But during the lulls and the challenging times, the 10-Year Target can be a beacon that gives your people the energy to keep marching in the face of adversity. And it gives leadership confidence all your people are all marching in the same direction.

There has probably never been a more aspirational and inspirational 10-Year Target than John F Kennedy's challenge to put a man on the moon and return him safely to earth. That 10-year target inspired a nation. What 10-Year Target defines your "Moon Shot"?

By Michael Halperin 23 Feb, 2021

Where are the Big Issues?

In the Entrepreneurial Operating System (EOS), the second day of the two-day Annual Planning Meeting includes several hours just for solving issues. On the second day of a recent Annual Planning Meeting, the Visionary interrupted the proceedings. He said, somewhat exasperated, "guys, we have only an hour left. Why aren't we focused on our big, burning, urgent problems?"

We all looked at our Issues List. I said to him "we've been selecting and prioritizing our issues all afternoon. What big, burning problems do you see up here that we aren't talking about?"

After some examination of the Issues List, he said "they aren't up there". So I asked the entire Leadership Team "what big, burning, urgent problems are out there that we haven't put on our Issues List?"

The question was met with a long silence. Finally, one member of the Leadership Team said "I can't think of any". One at a time, every member of the team – including the Visionary – agreed.

Later, as we concluded the two-day session, the Visionary said "for the first time in 17 years of running this business, I have to get used to the idea that our business does NOT have big, burning, urgent problems."

 

As they begin implementing EOS, most organizations I work with have a litany of serious, short and long-term issues. Much of the power of EOS comes from its ability to help Leadership Teams:

·      Smoke out their issues

·      Collaboratively devise action plans to address those issues

·      Build a culture of accountability so action plans are effectively implemented

Moreover, EOS establishes a healthy foundation for more easily resolving the most common business issues or – better yet – avoiding them altogether.

Over time (often in the first year of an EOS implementation) the number of serious short-term issues drops dramatically while the horizon for long-term issues becoming "hot" gets longer and longer.

Sometimes it evens leads to a Leader asking, "Where are our big issues?". My favorite answer to that question is "in the rear-view mirror".

By Michael Halperin 02 Feb, 2021

"One of them has to go", the Integrator said. The other members of the Leadership Team nodded their heads in grim agreement. "Maybe both", said the Ops Leader, "We may have two 'Wrong People'."

Jen, Production Manager, and Dave, HR Specialist, seemed to hate each other. Every time they worked together it was a fight.

The EOS Implementer asked what they fight about. "It happens every time we hire someone", said the Ops Leader, "they argue about everything….who gets the resume first. Who makes the screening call. Who makes the offer. Every time it's an ugly battle."

"What does the process say?", the EOS Implementer asked. After a long silence, the Finance Leader sheepishly answered, "What process?"

Two weeks later, the Ops Leader sat together with Jen and Dave. They expected the worst. What they got instead was a new Hiring Process. "Well that clears up a lot", said Dave, relieved. Jen nodded in agreement. Since then, the two have gotten along just fine.

 

EOS' IDS process begins by identifying the root of the issue. Spoiler alert: at least 70% of the time, the root of the issue is in either the People Component or the Process Component.

Now, it is easy to convince business leaders how critical it is to get the Right People into the Right Seats. Yet many don't realize the Process Component is just as important! In the story above, what looked like a People issue was actually a Process issue.

Many issues across any business can be traced back to lack of clarity about how work gets done. It creates frustration and wastes time. It leads to inconsistent results, demotivating employees and confusing customers.

By contrast, organizations that strengthen their Process Component become more consistent, predictable, manageable and scalable. People become more productive, so the business becomes more profitable.

Because confusion about how things gets done is a main source of day-to-day frustration, a company that strengthens their Process Component becomes a more fun place to work.

Yet many business leaders tend to underestimate the importance of their Process Component, or shy away from taking a systematic approach to improving their processes.  Some fear the initiative will be a complicated, expensive, time-consuming project that won't really change anything.

But strengthening the Process Component – establishing and implementing clearly defined, efficient processes – doesn't need to be complicated or expensive, and consumes less time than you might think.  

EOS' Three Step Process Documenter focuses on the "critical few" processes – the ones that really matter to your customers and employees – and documents them in only a few pages, focusing on the 20% of activities that yield 80% of the result.

If all your processes were clearly defined, efficient, and consistently followed, what impact would that have on your business? If you are like most businesses, it would be a game changer.  

That opportunity is there for every entrepreneur who is willing to embrace their Process Component.  

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