Simplify communication, set expectations, align vision, and grow like never before

Key Takeaways:

• A management operating system (MOS) provides an instruction manual for running your business.
• MOS makes our companies system-dependent rather than people-dependent, enabling consistency
• There are a number of quality systems available – it’s about choosing the right one for you
• These systems shine a light on the path toward your goals

In the intricate world of business, not everything comes with a manual, yet entrepreneurs have an array of systems at their disposal. A business, akin to a well-oiled machine, requires an operating system to navigate the complexities, fostering clarity, teamwork, and streamlined processes. This article delves into the profound benefits of implementing a Management Operating System (MOS) and its pivotal role in achieving organizational goals. It will shed light on the significance of a business by design with simplified communication, the establishment of clear expectations, and the alignment of vision.

A business by design

What’s a business by design? It’s a business that’s created to function largely without constant oversight. This demands leadership by design – understanding one’s strengths and weaknesses and building a team that enables confident delegation. Putting the right people in the right seats is critical to success; all the talent and engagement in the world only take a company so far.

To run a business by design means using systems and processes that make many aspects system-dependent instead of people-dependent, lightening our load while creating efficiencies and redundancies that evolve and protect the business. A side-effect of this is consistency, a vital characteristic to both run a business and make it attractive for potential buyers down the road.

The power of an MOS

Moving a business forward requires an effective operating system that transitions it from the entrepreneurial phase to a more mature state. Implementing the right operating system can:

• Simplify communications while amplifying the impact.
• Clearly set expectations.
• Create and reinforce vision alignment.
• Build feedback loops from management to employees and back.
• Improve and streamline processes.
• Ensure consistency.

Other benefits include improved efficiency and productivity, reduced costs, a competitive edge, and the ability to scale our businesses more easily.

Where are you now? Assessing your current state

The path toward our goals becomes much easier with an MOS. Before choosing one, however, we have to ask ourselves, “Where do we want to go?” Use a strategy of identifying and evaluating current processes. Focus on the entire organization.

A current state assessment gives us an accurate starting point for building a roadmap that accelerates progress toward our goal. No matter your goal, you have to find that beginning point, and knowing where we are today offers a clear picture of how far away the goal is and what needs to be done to achieve it. 

The core components of an effective operating system

Many MOSs look similar on the surface, but they have their differences. However, any quality system should have these core elements:

• An overall philosophy that is proven and aligns with the “why” and what you and your organization want to achieve.
• A systemized way to share the vision with the team and ways to show everyone aligns around it. Any comprehensive system must include a way to disseminate and reinforce the shared vision. This helps put the right people in the right seats.
• A rhythm of accountability – ways to define and measure objectives and scheduling capabilities for specific meetings, as well as other methods to improve communication and accountability.

These factors are vital if we are to tackle the most common and destructive problems faced by businesses. A MOS is designed to turn chaos into order, opacity into visibility, and fuzzy goals into actionable and accountable objectives. 

Choosing the right operating system 

There are a lot of operating systems out there, but here’s a list of quality systems to check out:

• Michael Gerber’s E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It lays the foundation for the E-Myth operating system, emphasizing Process over People—a philosophy inspired by the Franchise model style management. The E-Myth system, detailed in the book, outlines a nine-step approach for intentionally designing and implementing effective business systems.

• Gino Wickman’s Traction: Get a Grip on Your Business planted the flag for the Entrepreneurial Operating System® (EOS®). In this, Wickman puts People over Process, ensuring the creation of effective systems that empower individuals to thrive within the organization. 

• Verne Harnish’s Scaling Up: How a Few Companies Make It … and Why the Rest Don’t introduces the Scaling Up system, rooted in the Rockefeller Habits. Distinguishing itself from other systems, Scaling Up places a greater emphasis on tools related to Strategy and Cash. It adopts a Top/Down approach to management and structure. With a plethora of tools, this system can become intricate, highlighting the need for a coach’s guidance to navigate its complexity effectively.

• The Great Game of Business by Jack Stack with Bo Burlingham and its eponymous system is a popular choice, with a growth system to create healthy companies, better organizations, and better lives by giving financial education to all team members. This system thrives in financially motivated companies, that want everyone to win and share the profits. This system uses financial incentives and education to align and rally the team.
• Built to Sell: Creating a Business That Can Thrive Without You by John Warrillow underlies the Built to Sell operating system, with the main thrust of building a business that can survive without you, building value, and selling your company. Warrillow creates a system that is focused on creating value for acquisition or raising money. All efforts are done to achieve this and create an exit opportunity for the stakeholders.

Some of these systems are comprehensive and can apply to any business, from large corporations to small ventures. Others specialize in certain aspects of a company or assist specific types of organizations, like startups. Some have principles that an entrepreneur can learn and apply independently, while others benefit from a dedicated coach who helps implement them.

Achieve your goals

Implementing an operating system should facilitate goal achievement. Properly executed processes and mechanisms ensure intentional and predictable business operations, allowing for traction and vision realization. Choosing the right MOS breaks down growth steps into manageable components, making ambitious goals both approachable and achievable.

Track and measure progress

Each MOS has its own method for tracking and measuring progress toward our goals. But all require key performance indicators (KPIs), the metrics used to determine a company’s long-term performance and inform strategy and execution while enabling continuous improvement.

In EOS, we use scorecards to track the leading indicators so we can be proactive, rather than reactive, about issues and compare results against goals. Milestones must be established, with meaningful due dates designed to accomplish large goals. 

A MOS illuminates the path toward your goals

The benefits of implementing an operating system in our businesses are huge: simplifying communication, setting expectations, aligning vision, and more. Choose the right system and map, execute, and track progress easily and effectively to ensure we meet our goals effectively.