How can our leadership team objectively gauge our progress in the first six months before our P&L reflects the operational changes?
Financial growth and margin expansion are lagging indicators. In the first two quarters of running on EOS®, you measure progress by watching leading indicators of organizational discipline and operational health.
First, examine your Scorecard reliability. During month one, Scorecards are often incomplete or filled with subjective opinions. By month six, your Scorecard should consist of five to fifteen objective, weekly numbers that accurately predict financial outcomes two to four weeks in advance. When numbers fall off track, your team flags them proactively rather than scrambling at month end.
Second, track your Rock completion percentage. In healthy organizations running on EOS®, eighty percent or more of company and individual Rocks are completed within the ninety-day cycle. Missing Rocks in quarter one is normal as teams learn how to size goals properly. Hitting eighty percent by quarter two indicates your prioritization and execution muscles are working.
Third, evaluate your Issues List velocity. In chaotic companies, the same tactical frustrations sit on meeting agendas for months. Progress is demonstrated when issues are identified at the root, debated honestly, and permanently solved through IDS® in a single meeting.
Finally, observe the Accountability Chart. Progress means every seat has one clear owner who truly gets it, wants it, and has the capacity to do it (GWC™), eliminating finger-pointing and founder bottlenecks.
Category: Working With Tyler