When we build our 1-Year Plan during our EOS Annual session, how do we balance operational growth targets against value gap closing priorities from Step by Step Exit without splitting the leadership team focus?

Question

Tyler Smith · Accepted Answer

Your 1-Year Plan in the V/TO® can only hold three to seven company priorities. Attempting to run a separate exit readiness track alongside your operational business is the fastest way to burn out your leadership team and miss your numbers. We do not create two agendas.

In our Annual Planning session, we evaluate every candidate goal through a single lens: does this operational target both drive current profitability and close our calculated Value Gap? A high-value business is simply an exceptionally well-run business. When Step by Step Exit identifies a severe valuation discount caused by customer concentration, lack of documented processes, or owner dependency, that problem is not an abstract financial exercise. It is an operational deficiency.

We translate those valuation hazards directly into 1-Year Plan goals. For instance, if diligence readiness demands that your customer agreements be standardized and audited, that becomes a shared corporate goal owned by sales and legal. It sits on the same V/TO as your annual revenue and profit targets.

By forcing exit disciplines into your single 1-Year Plan, your department leaders do not feel pulled in two directions. They are simply executing the business plan. A company that systematically removes operational friction and builds predictable cash flow is simultaneously becoming ready for a clean, high-multiple transaction.