How To Set Company Goals: EOS Rocks ™
Few things are more important in a business than knowing how to set company goals. It doesn’t matter if you run a 1-person operation, a small business, or a corporate production facility; without goals you’re just driving in circles. And, if you’re going in circles, it doesn’t matter how much Traction® you get, your company isn’t going to reach quarterly objectives that don’t exist.
Businesses that operate on the Entrepreneurial Operating System (EOS)®, a system of running a company devised by Gino Wickman, don’t just set goals, they achieve them. They reach their organizational objectives by, among other things, achieving Traction and Vision™. Rocks™ are a very important part of both.
Rocks are a tool that can help to guide a business, measure its progress, and even make sure its employees keep work / life balance.
Why Are EOS Rocks So Important?
Rocks are so important because they embody your company’s quarterly goals, which are a means of reaching your annual objectives, which are necessary to move the company in its greater strategic direction. That’s why we call them Rocks; they are the foundation upon which we build the future of our company.
In EOS we live in a 90 Day World™ and Rocks are the “cornerstone” of that world.
What Exactly Is A Rock?
A Rock is one of the 3-7 goals in a quarter that your company absolutely must achieve to hit its long-term targets. That’s it. Sounds simple, right?
While the concept of a Rock is simple, the process of defining what is a Rock and what isn’t a Rock can be as challenging as it is rewarding. Many organizations that are attempting to use EOS Rocks to set company goals employee a Certified EOS Implementer to guide them through the process. For those that choose to “self implement” EOS, there are a few key steps that you should follow:
How To Set Company Goals That Are Rocks
The first step is to identify all of the major goals the company has in the next quarter. Remember, Rocks are your 90 Day World goals, but they should always be stepping stones towards your annual goals. Rocks are a foundation, not an end in themselves.
Write down all of the things you want your company to achieve in the next 90 days. It might be a big list. That’s fine. Just remember to keep the items on the list strategic, comprehensive, and measurable.
KKC: Keep, Kill, Combine
The second step is to KKC your list of goals. You are aiming for 3-7. Anything less than that will leave you without guidance. Anything more than that will likely be overwhelming. 5 is the golden number here.
For every item on your list you need to decide to Keep it, Kill it, or Combine it. Simply put, you make it a Rock, cross it off the list, or combine it with something similar on the list.This is trickier than it sounds. A major misstep that companies make when doing this alone is to set Rocks that are too complicated, unrealistic, or just plain not important enough to their strategic goals.
Take your time in doing this. A company that has a Certified EOS Implementer guide them through the process can usually set Rocks in a few hours. However, if you are trying to set Rocks without that guidance, it’s advisable to take a couple of days (even weeks) to think these over and discuss with colleagues.
Businesses that use the Entrepreneurial Operating System have a saying, “If more than one person is responsible, then no one is.” Assign each of your Rocks to the person on you leadership team that makes the most sense. If your rock is “generate 12 leads”, then it follows that the sales and marketing director should be assigned that Rock. If the Rock is “build x number of widgets”, it goes to the operations head.
Make 100% sure that each Rock is assigned to someone and that that person knows they are responsible for reaching it.
Meeting company goals is just like setting company goals; it doesn’t happen from luck. To meet company objectives for the quarter you should consider building an EOS Scorecard. A Scorecard helps track progress, predict issues before they arrive, and meet Rocks by operating proactively, not reactively.
Check out our guide to Scorecards.
Need More Help?
Contact US for a free consultation phone call on what the Entrepreneurial Operating System can do for you.
For events in your area or online check out our news section.
Whittle & Partners is a consulting group that provides EOS™ Implementation in the United States and beyond. We offer in-person and online solutions to fit your business and schedule.Visit our about us page to learn how and why we love bringing Dallas Traction.
Jeff Whittle is a Certified Dallas EOS Implementer.