We run on EOS.
It has been game-changing for us. Our vision is clear, our team is aligned with the values and missions, and we are creating a culture that is open to new ideas and discusses challenging issues.
The result is we have been able to 3x the business.
In other words, we are the data component.
And as we all know the tools are simple. It’s going deeper into the tools where the insights and learning are applied.
Our mission is to help unleash the full potential of the growth-minded entrepreneur.
We want to help you gain control of your finances to make smart decisions to build and grow your Company.
In this article, you will learn about:
- Best practices for the current EOS Data tools
- A few additional data tools to support your EOS Company
- Ways to go deeper into the EOS data tools
- 3 key takeaways
Let’s dive in.
Best Practices for the Current EOS Data Tools
The EOS data tools are your gauges. If set up and utilized properly, they are going to help you accurately and consistently measure the pulse of your business so you can take effective action when needed. You’ll no longer manage based on gut, emotion, ego, or impulse.
You will have data.
Understanding the landscape
Ok, as a quick refresher let’s discuss the EOS data component tools.
- Scorecard – This is a handful of numbers, between 5-15, that can tell you at a glance how the business is doing. These are reported weekly, monthly, quarterly, and annually.
- Measurables – This is a number that is given to a single person to take ownership of.
There you have it. That data component of EOS is pretty simple. We have a few additional tools which we will discuss below.
But don’t be deceived. The power of the tools actually lies in the “working” and “evolution” of the tools themselves. For instance, at New Economy, it took us about a year to land on the right scorecard and we are continuing to evolve it. This provides better data to make decisions and gauge where the business is currently at and trending.
So, over the years we have created some best practices which have helped us to further unlock the 2 main EOS Data Component tools.
Here they are:
- Leverage technology. We started way back in the day using a Google sheet as it allowed for sharing and easy updating. We then moved on to leveraging the technology platform Ninety.io. It has been a game-changer.
- Be persistent and relentless. When we started, the information entered was not correct. In fact, we learned we were measuring the wrong things. But we hung in there and continued to hold the line, it was worth it. So pick a team member, like your Integrator, to be persistent and relentless.
- Measure “fluffy stuff”. We measure the more traditional stuff like cash in, gross profit, and so forth. But what about keeping a pulse on team members? We measure something called “High Satisfaction” days with our team. We also measure “Core Value Call Outs”. We set goals and intentions to foster and develop the culture we want.
- Measure leading indicators. Measuring revenue is great but what drives revenue? We measure leads and new prospect zooms which lead to sales. So consider those things that will help you drive towards your desired outcome.
- Reflect, Discern, and Simplify. The natural tendency is to measure more. We try to step back and really ensure we are measuring only the things that matter. We strive to continue to simplify.
- Accountability. You need to go there. If something is off track, lean in and give the person taking ownership the opportunity to get to the root cause and fix the problem. This will only happen if leadership is strong and healthy and is willing to go there.
So, keep working on your scorecards and measurables. It should be like fine wine and get better over time.
Additional Data Tools
At New Economy, we have leveraged a few additional tools that fit into the data component. We believe these tools help to provide visibility, confidence in decision-making, and overall peace of mind as it relates to uncertainty.
These are tools that are around technology and processes that we leverage to help our clients gain control of their finances to make smart decisions.
Here it goes:
- 13-week rolling cash flow forecast. Have you ever worried about cash? Well, imagine having a tool that is predicting the cash flows of your business to a degree of accuracy over the next 2.5 months. You would have peace of mind knowing where the cash gaps are coming from and can plan in advance on how to fill them.
- Financial model. You are familiar with this tool. You know it as the 1-year, 3-year, and 10-year plan. We have taken that tool and built it into the monthly financial meeting cadence. Meaning, we review the one-year plan each month and review for budget versus actual. Why? So we can determine what is off track, fix it, and re-forecast for the remainder of the year. Think agile budgeting and forecasting that make your 1, 3, and 10-year plan stay alive and front and center.
- Month End Close. Yes, this is a tool. Every business needs accurate financial statements to determine the financial performance of the business. The Month-end close is a tool that encompasses all of the reconciliations to ensure the numbers are correct. This is important because you should be making decisions based on true and accurate information.
For more information on these tools refer to our blog post here
At New Economy, we feel grateful to have the unique ability to help in the data component. We could not imagine running a business without having these tools in place.
And we feel you don’t have to be a bookkeeper, accountant, or CFO to have financial insights. These financial insights will help you:
- Increase your probability of success and achieving your goals
- Get the most out of your business
- Reduce your stress level and provide peace of mind
You just need to have the right team and system in place to provide timely and accurate financial information to help you grow your business.
Ways to Go Deeper on the EOS Data Tools
The beauty of the EOS tools is in their simplicity. They take complicated matters and help to provide a framework to make decisions.
But don’t be fooled. These tools have some depth to them and you need to stay close to them to receive the full benefit.
Since we like lists, here is a list of 10 things to consider when going deeper into the EOS Data tools:
- Make sure you have the right level of experience for the team member running your data tools. If they are too inexperienced, they will not be effective at fully leveraging the tools.
- Make sure you keep evolving the tools. Meaning, that the tools and their usage should improve over time. Don’t let them get stale or become complacent with them. Review them quarterly.
- Leverage technology for the tools. You will become more efficient, be able to collaborate with others, and avoid version control issues.
- Measure fluffy things. We have scorecard items that are so impactful but they are non-financial and culture-related. We measure things like high satisfaction days and core value callouts which help to create and nurture the culture we desire.
- Don’t settle for less. Every business needs a cash flow projection, a budget, and ongoing projections that are updated monthly. These tools will give you tremendous insight into the business. Make sure you have these tools in place.
- Get an outside perspective. Talk to other EOS companies. Seek the counsel of accountants and CFOs who are dedicated to adding value to the EOS community. Feel free to email me directly at [email protected].
- Think vision and leading indicators. Think of where you want to be and consider the things that have to happen to get you there. If you want sales, measure leads, customer calls, and prospecting lunches as they will drive you toward your desired outcome.
- Hold the line on accountability. Make sure the numbers are accurate and are being delivered timely. The idea is you can use this data to make smart decisions to build your business. And get to the root cause of off-track data issues.
- Reflect on the data. Meaning are you learning and applying what you are learning to drive change in the business? Reflect, learn, and apply.
- Everyone, I mean everyone, has a number. Consider each team member and ask yourself, do they have a number? If they don’t, they should. Connect these numbers into the vision which is connected to the financial plan. Many companies overlook this.
Data is your friend. The tools that provide data arm you with information to support your intuition and gut. It is an amazing combination of having great intuition and data to support it when making decisions.
There you have it. We hope this insight allows you to go deeper into the EOS data component to help you achieve your goals.
Here are three key takeaways:
- Get the right person in the right seat. Make sure that you have an experienced EOS accountant on your Accountability chart to help you leverage your data to keep your pulse on the business.
- Leverage your data to make smart decisions. If you have questions or decisions to make, use your budget to understand the financial implications of those decisions. You now have tools to help corroborate your “gut” response to decisions.
- Leverage additional tools such as a budget, forecast, and cash flow projection. Every week, month, and quarter you will be gaining new insights into your business. You have the opportunity to apply that learning and make changes that will impact the performance of your business.
New Economy Team Members are Experts in Accounting for Entrepreneurs
If identifying ways to decrease your taxes is not in your skill set or you want to gain control of your finances to make smart decisions to build and grow your business, New Economy is an excellent partner.
We’ll help you get your accounting and taxes done, and done right.
Schedule a time to meet with our Founder, Jeff, and discuss how we can add value to your situation.