Process (Traction Toolbox Part 5 of 8)

In Part 5 of our overview of the Entrepreneurial Operating System (EOS), we focus on process. This component is essential for gaining traction in your business. It involves clearly documenting all routine activities and ensuring that everyone follows them consistently. When done well, it allows your business to operate smoothly without the owner’s daily involvement—and even be replicated across multiple locations.

     Michael Gerber, in The E-Myth Revisited, emphasizes the importance of transferring business operations from the owner's mind into documented systems. He uses franchises like McDonald’s to illustrate how consistent results can be achieved by entry-level employees—thanks to well-defined systems.

    To implement the process component, you must step back from daily operations and analyze how your business functions. You’ll likely find that a few core processes drive most of your activity.  Once you recognize that 80% or more of your business is routine, you can document these processes, train your team, and hold them accountable for following them.

Here are the steps to document your core processes:

1.      Identify your core processes: Start by listing them—this acts as your table of contents. Common examples of core processes include accounting, marketing, sales, operations (typically 2-3 distinct processes), customer care, human resources.

2.      Document each process: Use simple bullet points to describe what happens in each process. Keep it concise—each process should ideally be under 10 pages.

3.      Focus on the vital few: Document the 20% of activities that produce 80% of the results. Clarity and simplicity are key.

4.      Create a visual flowchart: This helps illustrate how all processes connect. EOS refers to this as your Circle of Life.

5.      Involve your leadership team in this activity: Collaboration ensures accuracy and buy-in during both identification and documentation.

6.      Train and establish clear accountabilities: Once documented, share the processes with your entire team. You now have an objective basis to train and execute consistent operations.

    Documenting and implementing process is an essential component for a healthy, growing business.