How does our definition of progress shift between the first twelve months of building EOS foundations and the second twelve months of exit readiness?

Question

Tyler Smith · Accepted Answer

In the first twelve months of our twenty-four-month engagement, progress is defined by internal control and stability. We are building your operational foundation. We measure success by whether your leadership team is aligned on the V/TO®, whether you are consistently hitting eighty percent of your quarterly Rocks, and whether your Level 10 Meeting™ sessions are highly productive. We are moving your business from a state of reactive firefighting to a disciplined ninety-day world. In the second twelve months, our definition of progress shifts outward toward market value and transferability. We transition from simple operational execution to deep exit readiness. We measure progress by your progress on the six exit disciplines of the Step by Step Exit framework. We look at the reduction of your Value Gaps and the documentation of Tribal Knowledge. We track whether your business can run smoothly without the daily involvement of the owners. Progress in year two is measured by how clean your eventual exit will be and how much your valuation multiple has increased. Year one is about building a business that runs well. Year two is about building a business that is highly valuable and easily sold.