Traction: Using Systems and Metrics to Grow Profits

Have you read the book Traction by Gino Wickman? Highly recommended for every business leader. Traction is all about using systems and metrics to achieve business excellence.

Lots of GHL-oriented info in this book.

SYSTEMS

Systems enable everyone on the team to speak, listen, and think with a shared language and a common vocabulary.

METRICS

Clear metrics enable everyone to know that the ship is on course. The best metrics also give guidance on self-correction.

ENTREPRENEURIAL OPERATING SYSTEM (EOS)

Traction tells how to implement the Entrepreneurial Operating System (EOS) within a company. EOS is the collection of systems, metrics, and tools for achieving business results.

GIVE EVERYONE A NUMBER. LET THEM SELF-CORRECT.

Everyone on the team needs a target number. From this number, each team member knows whether they’re on or off course. The best metrics will guide the member on how to self-correct.

For example, one company assigns the number TWO to their telephone reception team. All phone calls must be answered within TWO rings. Everyone who answers phones knows immediately whether they’re on course, and the number tells them how to self-correct.

GREATER STEEL PRODUCTION

Another example: While inspecting a steel refinery, the company CEO took out a piece of chalk and wrote a single number on the factory floor. The chalk-written number represented the quantity of steel produced by the day shift.

When the night shift arrived, they noticed the number, asked about it, and they immediately felt driven to compete. At the end of their shift, they rubbed out the old number and replaced it with their own (larger) number.

The day shift repeated this competitive cycle. In time, this plant became the most productive refinery in the company. Each shift was driven by a number, and they knew how to self-correct.

SIMPLICITY and SELF-CORRECTION

Every EOS metric should offer simplicity and self-correction.

NEXT STEP...

What systems and metrics are you using with your team? How do you encourage excellence? Let's share ideas and learn from each other.

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