We are exactly five years away from our target exit date and our list of operational improvements is overwhelming. How do we apply extreme focus to sequence our annual Rocks so we do not burn out our leadership team before we even reach the sale?

Question

Tyler Smith · Accepted Answer

When you are five years out, the temptation is to try to fix every operational flaw at once. This leads to initiative fatigue and team burnout. Instead, apply the extreme Pareto principle from The ONE Thing. You must identify the single lead domino that makes all other improvements easier or unnecessary. Start by asking the Focusing Question: What is the ONE Thing we can build this year that will drive the greatest increase in enterprise value? In year five, that is almost always defining your long-term Accountability Chart. You cannot scale a messy structure. Use your annual planning session to define the seat requirements for the next five years. Do not focus on who is in the seats yet; focus on the structure needed to hit your target valuation. Once the structure is clear, make sure you have the right people in the right seats. In year four, focus on documenting your core processes to make the business repeatable. In year three, automate those processes. By narrowing your focus to one critical priority per year, you build momentum. Your leadership team can execute one major strategic objective at a time, preventing burnout and ensuring your systems are mature when you finally enter negotiations.