I’ve written much about Business Operating Systems (BOS) and how they form the framework for strategy development, deployment, and execution. It is many chain-linked and aligned processes, cascading throughout a company’s functions, teams, and individuals. They operate in alignment with the organization’s core values and purpose (or mission), which are typically identified at the very outset of formation. They also usually operate outside of the specific work instructions, standard operating procedures (SOPs), and department processes that define the majority of how employees work.
For larger companies, a BOS is very likely already in place. I’ve worked with many mature systems, from HOS (Honeywell) to ACE (United Technologies) to EBS (Eaton), and I have familiarity with many others, including DBS (Danaher) and TPS (Toyota).
I’ve used elements of the Entrepreneur Operating System (EOS®) over the last five years as it has become a more prevalent option for smaller and medium-sized businesses (SMB), as it offers a clear structure and less complexity, with simple tools and trackers for companies.
I’ve even worked with one leader whose BOS was generally a set of sticky notes or yes, napkins. I’m not certain of the effectiveness of the follow-through, though it was a very cost-effective implementation.
Having worked with several SMBs over the years (50-300 employees, $10M-$150M in revenue), I’ve often implemented a BOS that feels right for the organization, addressing their strengths and challenges. It usually is a hybrid of best practices that I’ve encountered, taking the uniqueness of the particular organization into account. It is crucial to take the time to understand the culture, the strategy, the structure, and the processes in place. A BOS shouldn’t be disruptive or cause upheaval. Its purpose is to support and aid an organization with alignment and performance. There is no need to blow up what is already working. Once those initial observations are complete, it’s time to put a BOS in place.
In my experience, the key factors that indicate a company might be ready for this next step are:
1) The CEO/Owner/Founder’s focus is being called into too many tactical areas (most notably operations) and cannot maintain the broader focus of the organization.
2) Significant growth is on the horizon.
3) The CEO/Owner/Founder is noticing a lack of cascading and clarity of goals and behaviours throughout departments and employees.
4) Lack of consistent execution of a plan (strategic, operational, or tactical)
And where does the work typically begin? With Leadership and Strategy. With the right strategy established, you must ensure you have the right leaders in the right roles to support both the deployment and execution and the culture to ensure success follows. Once those pieces are in place, details regarding performance, reviews, meetings, and commitments will follow suit. I have often cited Patrick Lencioni’s “The Ideal Team Player” as a fantastic overview of those virtues that enable an organization to achieve greatness. Another one of his books, which speaks well to how the foundational work gets set, is “The Four Obsessions of an Extraordinary Executive.” It never mentions a Business Operating System, but the initial components are in place. Summarizing these elements:
1) Build and Maintain a Cohesive Leadership Team
2) Create Organizational Clarity
3) Overcommunicate Organizational Clarity
4) Reinforce Organizational Clarity Through Human Systems
The book provides a wide berth on implementing these elements, though with evident outcomes and results.
Is a BOS a be-all-and-end-all solution for all problems encountered? Certainly not.
As mentioned, there is an initial assumption that a set of core values and a vision and mission are already established and well thought-out, in the direction the company wants to move. It is beneficial to have the right organizational layout and leadership in place. The CEO needs to make sure the BOS is flexible and agile. It can’t be bureaucratic or cumbersome -> those systems lose steam. It isn’t about 10-15 hours of meetings every week. If the leadership isn’t committed to the process established, it will fail. If the team doesn’t commit to deliverables and actions (and quickly), it will still fail. And once those failures begin, it becomes a slippery slope. Not only by the leaders, but now, all of a sudden, it has become the latest “flavour of the day” from the employees’ perspectives.
However, will a BOS provide some structure and performance measures to assist in allowing the CEO to transition to more visionary work and allow for more company growth? It does. Does it set the tone amongst the senior team to create an environment of discussion, debate, performance, and accountability? It does. A well-implemented BOS will accelerate the path to the mission, not slow it down.
And that’s something leaders, employees, shareholders, and consumers can always benefit from.