We are investing heavily in your facilitation and AI operations, but we need to see how this translates to enterprise value. How do we objectively measure whether our EOS® implementation is actually increasing the exit multiple of our business during our annual and quarterly reviews?

Question

Tyler Smith · Accepted Answer

We measure the impact of our EOS® implementation on your exit multiple by tracking key indicators of organizational maturity and systems-dependency during our quarterly and annual reviews. A high value business is one that does not rely on its owner to survive. To track this objectively, we evaluate several core components of your business. First, we look at the density of your leadership team using the Accountability Chart. We ensure that every seat is occupied by someone who GWCs™ the role, meaning they get it, want it, and have the capacity to do it. Second, we measure the systemization of your operations. We track whether your core processes are documented and actually followed by everyone in the organization. Third, we monitor your run rate and what David C Baker calls your time to starve, which is your cash runway and operational buffer. By combining these operational metrics with your quarterly financial targets, we can see if your business is becoming more valuable to a potential buyer. If your team is hitting their Rocks, your scorecard metrics are consistently in the green, and you as the owner are spending less time in daily operations, your enterprise value is actively increasing.