“Successful leaders surround themselves with great people. You can’t build a company without help. EOS… provides a practical understanding of the two essential ingredients of any great team: the right people in the right seats.”Gino Wickman is the author of Traction: Get a Grip on Your Business.
People are essential, as you want to build your organization with the “right people in the right seats.” People is one of the Six Key Components of the Entrepreneurial Operating System® (EOS®). In his book, Traction: Get a Grip on Your Business, Gino Wickman details EOS® as a complete tool kit to help leadership teams improve and grow their companies. To learn more about EOS®, you can read our summary of Traction.
The right people in the right roles is essential to growing a great organization. These individuals will embody your core values, fit into the culture, and excel in positions to be effective and valuable for the company.
The Right People “are the ones who share your company’s core values.” They understand the vision, fit within the company culture, and will work to make the organization better.Gino Wickman is the author of Traction: Get a Grip on Your Business.
The Right People share your company’s Core Values, which are the three to seven guiding principles for who you are as an organization. They are embodied by the top performers and best in your organization, and it’s up to you and your leadership team to rediscover those values and write them down. These Core Values are part of your organization’s vision and are typically written down in the EOS® Vision/Traction Organizer™ (V/TO).
These Core Values will help shape company culture by attracting people that fit them and weeding out those who don’t fit. Please note that regardless of what your core values are, not everyone will share them. And of those who don’t share them, it does not make those people good, bad, right, or wrong. The Core Values will guide you and your employees on how to make significant and difficult decisions in your company.
The People Analyzer™
It is common to fall into the trap of discussing personnel problems in a subjective manner, which leads to poor unproductive decisions regarding your people. EOS® provides the People Analyzer™ tool to use your Core Values to help provide clarity on whether you have the right people in your company:
Core Values + People Analyzer™ = Right People
The tool consists of a table with the employees listed in the left column. Next, the Core Values are listed across the top row. Then, each people is evaluated value by value to evaluate that individual’s embodiment of each Core Value. After filling out the People Analyzer™ tool, you and your leadership must set a minimum standard for what to expect from your employees.
When it is determined that some of the employees do not fulfill the minimum standards, you have to communicate the results and provide the opportunity for that employee to improve. Most of the time, your people will improve as the Core Values and standards are understood through regular communication at meetings and performance reviews. If after several chances provide with no improvement, it is time to fire your employee.
The Right Seat “means that each of your employees is operating within his or her area of greatest skill and passion inside your organization.”Gino Wickman is the author of Traction: Get a Grip on Your Business.
The Right Seat allows your people to operate within their Unique Ability®, which are the “characteristics and values entirely unique to you.” Everyone has their Unique Ability® which is their strongest skills to maximize their effectiveness and worth to the company. The Right Seat will provide the roles and responsibilities to allow your employees to seek improvement, feel energized, and maximize their Unique Ability®.
A major obstacle in gaining traction is that your business has a messy structure of undefined roles, unclear responsibilities, or poor expectations. Most organizations are structured using Organizational Charts with emphasis on a title for every role. However, these unclear structures do not show what the major functions of the organization are and who is accountable for what.
EOS® provides the Accountability Chart tool to help optimally structure an organization in terms of functionality and accountability. Further, the chart will help identify the right seats or roles that suits a given employee’s Unique Ability®:
Unique Ability® + Accountability Chart = Right Seats
The Accountability Chart tool helps to clearly outline an organization’s major functions and define individual roles and responsibilities. It forces the leadership team to view their organizations differently, address people issues, and move their business forward.
Your Leadership Team will consist of a small team with three major business functions:
- Sales and Marketing: generate business for the company
- Operations: produces the goods or services and delivers them to the customer
- Finance and Administration: manages cash flow, infrastructure, systems, and hiring
Additionally, the Leadership Team has two overarching functions that work together:
- Integrator: works to gain traction by harmoniously integrating the Leadership Team. The Integrator “runs the organization, manages day-to-day issues that arise, and integrates the three major functions.”
- Visionary: works formulate the vision for where the company is going in the long-term. The Visionary contemplates the big picture, sets the tone for company culture, and manages client relationships.
However, there is no one way to structure your organization, as the Accountability Chart can be customized. In order to maintain accountability, only one person should ultimately be in charge of any major function within an organization.
Structuring the Accountability Chart
After establishing the Leadership Team, the major business functions can be organized as shown below. To fill in the Accountability Chart structure, you need to assign three to seven major responsibilities for each role.
As your company grows in workload, the chart will have to evolve and scale to create new seats created under major business functions. Then work can be delegated down and the right person with their Unique Ability® can be assigned to that right seat.
- Get it: The employee understands the role, expectations, company culture, and pace of work. They recognized their value and how their role fits within the organization.
- Want it: The employee desires to work for your organization and make an impact. They are interested in the role, responsibilities, and compensation.
- Capacity to do it: The employee has the mental, physical, and emotional ability to do the role. They have the knowledge, experience, or education to do the work.
When going through the GWC tool, if you get ‘NO’ answers for any of the criteria, then you do not have the right person in the right seat. You can resolve this in a few ways:
- Find a way to turn the ‘No’ into a ‘Yes if the employee is willing to change or improve into the Right Person for that Right Seat.
- Find another role in the organization in which that employee is the Right Person for the Right Seat.
- Find a Right Person for the Right Seat from within or outside the organization.