Keeping Family Businesses on Track with EOS | Debra Chantry-Taylor | Ep 219

Debra Chantry-Taylor  00:07

Thanks for joining us on the Better Business better life podcast. I'm your host, Debra Chantry-Taylor, and I'm passionate about helping entrepreneurs lead their lives by creating better businesses, because life is just too bloody short.

I'm a certified EOS implementer and FBA accredited family business advisor and a business owner myself with several business interests. I work with established business owners and their leadership teams to help them live their ideal entrepreneurial life using EOS, the Entrepreneur Operating System, and I use this podcast to share practical tips and tools about how EOS can help you in your business and your life to get more of what you want.

Debra Chantry-Taylor  00:50

In today's show, I'm going to talk about family business and the Pit Stop your family business didn't know it needed. Or, in other words, how EOS can help fast growing family businesses stabilise, refocus and accelerate like a finely tuned car.

So first of all, I just want to share with you I do a lot of work with family businesses, and I actually believe that EOS is one of the most powerful tools that a family business can actually use. Family businesses are slightly different to everyday businesses in terms of you've got the additional complexity of the family, the ownership and the actual business itself. So I use the three circle family business model from Harvard to actually help people identify each of those three circles, what they need to be focusing on, who's in those circles, what their role is. But this particular podcast is about business. It's only talking quite specifically about the family business and what the family business needs.

I recently worked with a family business that was doing incredibly well, 130 people, growing 20% year on year, but they said it felt like the wheels were falling off. So if you're scaling fast, feeling the pressure and wondering how to keep the business and the family on track, then this episode is for you. So as I said in my introduction, I am a family business advisor. I do a lot of work with family businesses. We work with the three circle, the Three-Circle Harvard Family Business Model, which talks about the three circles being business ownership and family. And I do a lot of work with families to help them understand what those three circles mean, and where they sit in those three circles, what their roles are, and how everything works within those three circles.

Debra Chantry-Taylor  02:18

This particular podcast is about business. I'm going to talk very much about the family business. Family business side of it. There's an illusion out there that fast growth equals success. You know, we're all kind of racing to get big growth and growth things really quickly, but there are some real dangers around actually growing fast. There are things like decisions getting slower, accountability gets very murky, and the same issues keep resurfacing all the time. And the analogy that I like to use is like an F1 car, like going 300 kilometres an hour. It looks amazing, but one wrong move, and it's off its track. And so I talk about, you know, the wheels falling off as you grow quickly. So what is it the F1 cars do to make sure that they don't actually make a wrong move, they don't go off track, they do a pit stop. And your family business needs exactly the same thing.

So if you think about the family business, talking about the business part, they need to have some frameworks and structure to actually make sure that they can keep those those clarity, because we all know that clarity creates confidence. So I love the EOS model as a tool for family businesses, because it's a really great way to bring a framework and a structure into the business that it's simple, it's pragmatic, it's kind of easy to actually implement, and it starts to provide real clarity, so that you can get that control, that clarity and that traction. So if you think about an EOS pit stop, what is it? So EOS, the Entrepreneurial Operating System, is a very simple set of pragmatic and practical tools that will help you put a framework around the business to keep all of your people rowing in the same direction, getting them at 100% the same page in terms of their vision and where they're headed, how they play a part in that, the plan to actually get there, the discipline and accountability to get traction. So we have regular meetings and really hold people accountable of what they're meant to achieve, and getting the team to be really healthy, so fighting for the greater good. So that's what EOS is.

Debra Chantry-Taylor  03:34

And if you think about an EOS pit stop, it really is about revisiting all of those six key components that we have in the EOS model. So the vision part, have we got everybody on the same page in terms of where we're headed, who we are, how we operate, who we serve, where we're going in the long term, the medium term, in the short term, we've got the people component. Have we got the right people in the right seats? So do we have the right people, people who share our core values, who really fit into the organisation? And then most importantly, are they in the right seats?

And when I say right seats, I mean, do we have the right structure to actually execute on the business plan, and once we have that structure, first, do we have the right people in those functions, people who genuinely GWC their role, they get it, they want it, they have the capacity to do it. And so that that right people, right seats, is really about taking all of the emotion out of it, taking all of the family relationships out of it, and going, what is absolutely best for the business. Do we have the right people in the right seats? then we have the data component. So are we actually measuring the right things? Do we have a set of measurables we're reviewing every single week that is helping us to keep a finger on the pulse of the business? Are we actually doing things with those measurables if we're not hitting them? Are we actually attacking them as issues and going, how do we actually solve that? And ideally, once you've got the data component right, every single person the business knows exactly what they're being held accountable for. They know exactly what measurables they have to produce each week, and they're reporting on that in a weekly meeting, then we've got the issues component.

Debra Chantry-Taylor  05:02

So the issues is about very much, making sure that we are identifying all the issues, short term and long term, that are either holding the business back, or opportunities for actually growing the business. And so using a tool called IDs, the issues solving track, are we identifying the real issue at its root court, root cause? Are we discussing all the possible ways to actually make sure we can solve it? And then what do we actually have a solve which is an action point that actually moves us forward? So that's the issues component, making sure we have those issues identified, but then we're actually working to solve the root cause every week, every quarter. Then we have the process components. And process, you know, I think this gets over complicated in business, but it's like, what are the main core processes that we actually have to run the business? And do we have them documented? Do we have them simplified, and is everybody following them to produce the consistent results that we actually acquire from our business.

And then finally, the traction component, which is about making sure every person has got a rock that they're focused on, or two or three in the quarter, that really moves the needle on the business. So we all have to focus on business as usual, because, of course, business as usual is what drives the business forward, keeps the doors open, keeps the money coming in, make sure that we're all they would be paid every week. But if we're not focusing on the things that are not necessarily urgent but still important, they're not improving the business. And so you know, if we keep doing the same thing over and over again, we'll get the same results. Putting rocks into your business means we're laser sharp, focused on the key things all actually move the needle in the business, make it more efficient, make it more profitable, and make it more enjoyable, whatever it might be. So that's the rocks part, and finding the meeting pulse is everybody actually involved in a regular meeting on a quarterly basis, annual basis, and then on a weekly basis as well.

Debra Chantry-Taylor  07:10

So an EOS pit stop is about really taking the time to make sure that we have got those things in place. And we have five foundational tools in EOS, and I find that they're really, really helpful for a family business. So the key tools that you'd use you during this kind of pit stop is your accountability chart. First and foremost, who's driving what, who's playing what role in each of those bits around the business. We've got the rocks, the short bursts of laser sharp focus. One of the things we really need to be laser sharp focused on to really fundamentally make a difference. And then the meeting pulse, our level, 10 meetings, our weekly meetings, our regular rhythm to tighten the communication. And finally, the scorecard, so real data to diagnose what's slipping. And so if you think about this, this is, you know, bringing your car and actually looking at this on a regular basis, we recommend, every 90 days, and going, do we have the right structure to actually deliver? Are we focused on the right things to really make a difference? Are we meeting regularly to keep our finger on the pulse, and do we have this scorecard that is really diagnosing what is actually going wrong?

Debra Chantry-Taylor  08:11

So what makes a family business unique in this scenario is that if you think about a family business, often there are additional things outside of just the business, there might be some emotionally charged roles. There could be siblings or mum and dads, different relationships that are really being brought into play in the business, and they have an effect on the way the business make decisions. You've often got legacy versus innovation tension. What I mean by that is you've got the original founders who have built the business build it up to where it is right now, you suddenly got your second or third generation coming in, and they really want to innovate it. But as with all founders, it's often difficult to kind of let go to the next generation and to see what that innovation might look like. And then we often get in a family business, and it is really, really common, the ownership decisions blow into operational wants. And what I mean by that is, you know, people put on their ownership hat and start to think about what they think as an owner, as opposed to the operations of the business.

So what I love about EOS is that EOS gives you the framework for the business to say, hey, with the three-circle model, we've got our owners over here, we've got our family over here, and we've got the business over here. Some people might be in all three of those circles. It might be in two or one of those circles. But if we're really clear about what each of those circles is responsible for, we can know that when we're in the business, we are focused on the business, and using EOS just gives that clarity in the business to ensure that all the emotions taken out of it and that we're actually dealing with the real issues from a business perspective, not from an ownership not from a family perspective. So the first tool that we use in EOS is what we call the vision, traction, organiser. It is really a tool that is designed to get everybody on the same page by answering eight questions to understand where we're going. But we can't actually. Use this tool until we're really clear about the way the business runs. And so the beauty of EOS is that we actually, we don't get into that vision, traction, organiser, plan.

Debra Chantry-Taylor  10:09

The first session, we actually go into our focus day, focusing on the foundational tools, which is our accountability chart, our structure, our rocks in terms of what we laser sharp focus on to improve the business our scorecard in terms of measuring the things on a weekly basis that we actually need to be measuring to have a finger on the pulse of the business. Then we've got our meeting pulse, which is our level 10 meeting. And finally, the VTO comes in in our second or third session. So if we can get these four things kind of really nailed, if we can get the structure right, and the way that we deal with structure is around using this thing called the accountability chart, we actually look at what are the main functions of the business, and how do we actually structure the business to execute on the plans that we have? And the way that we do that is we go right, what are the main functions?

We kind of plot them all out. We decide in a structural point of view, first of all, what those roles are, what they're being held accountable for, what their roles and responsibilities are, and then, and only then, do we say, do we have the right people to go into it? And so in this first pit stop with the family business, we're going, right is this structure that we've got right now? Is it actually the right structure? Take all of the people out of it, take all of the emotion out of it, and go back to basics and go, if we were going to build this, this business from the ground floor up today, what would we need to do? And if you think about the analogy of a sports car, it's kind of only if one car, it's really about, you know, what is the structure required to win this race? How do we build this car to ensure it can actually win the race? And that is our accountability chart. Once we've got that sorted, we then have a look at, you know, what are we going to hold people accountable for from a measurable point of view? So we look at the scorecard, and we go right based on your roles and responsibilities, on the accountability chart, what are we as a leadership team going to help hold you accountable for on a weekly basis? So the scorecard is a weekly measurable that's put in. We look at 13 weeks over time. And the idea being is you can now look at that and go, right, is the business doing well, or is the business in trouble? Can we pick up issues before they even become issues? If we're seeing a trend in our numbers, we should be highlighting it as an issue and actually discussing it in our level 10 meetings. So we've now got the accountability chart, which is very much about the structure of the car. We've got the scorecard, which is our dashboard.

Debra Chantry-Taylor  12:23

You know, if you're looking at the in the F1 analogy, you're sitting in your car, you're looking at your dashboard. You're seeing what's working, what's not working. You're seeing what you need to tweak certain things. You should put your foot hard on the accelerator, whether or not the brakes are kind of in trouble. And so that's our that's our scorecard dashboard. Then we have got our rocks. And so our rocks are, what are the things that we need to focus on to actually move the needle? So once you've done a few laps around the track, you might bring it into the pit stop and you're looking at that and going, right now what do we need to fine tune on this car to actually get the best performance from it? And so it's not about just driving the car, which is our business as usual, but it's about really making sure we are looking at the things that could really fine tune the car to get a better result.

And then finally, we're looking at level 10 meetings. And so the level 10 meetings are almost like little mini fueling stops that you're coming back in every week and sort of saying, Look, we know what our 90-day plan is. We know what we're trying to achieve. And now what we're trying to do is go, are we actually? Are we actually doing that? Is our that time? You know, the right time. Every time, when we're not reaching our lap time, why are we not reaching it? And so then looking at that and sort of fine tuning and using things like the issues solving to go, what's the real issue here? How do we actually do that? So that's the first pit stop, if you like, for a family business. It's called, it's called a focus day. It really is about bringing the car off the track for enough time to really get deep into it, to understand where the issues are and to understand how we can improve it before we go back out into our next race.

Debra Chantry-Taylor  13:49

Then the next kind of stages for a family business is to come back and to actually start working on what we call our two page plan, our vision, traction, organiser, and this is about really now starting now, we've got the framework, right. We've got the car, kind of operating at its opt performance. Now we're going to actually make sure that we have got the map, or the road, you know, the road map, to actually get there. And it's all about answering eight very simple questions, but very, very powerful. And we do this as a team, because as a family business, we want everybody, whether they're a family member or not, to really understand what is at the heart of this business. So the eight questions are first and foremost, what are our core values? How do we actually operate around here? What are the things that we do that absolutely makes us unique, and it's the way that we actually deliver the excellent service to our customers? So they're usually three to five core values that we live, breathe, hire, fire, reward recognised based on these core values. And we use a little exercise to actually uncover those. This is not a I wouldn't saw when economics at the Melbourne Comedy Festival just this week, and there were the guys there do a great job of, you know how, how these things can go wrong, how meetings can be terrible, how core values are generally come up with. We're not that kind of core values person. It's not a tick box exercise. It's about really getting into the deep, kind of inner workings of the vehicle to understand what really makes it what it is. And so we're using exercise to uncover that, discover what that real secret source is, and then really define it and make sure we have some really clear boundaries about what it looks like and what it doesn't look like, so nobody can be unsure about whether they're living by the core values or not.

The next question is around our core focus, and it's very much about making sure we understand why we do what we do. Why do we get out of bed every morning to do what we do? And it needs to kind of, you know, unify everybody in the organisation on why we do it. It doesn't tell people what you do, because the second part of the core focus really is about the what you do. So your WHY might be something about helping build people build dreams, or improving people's lives. That's the reason you actually do it. What do you do? Is a second part of the core focus, and it comes down to, what do you do better than anybody else? It's the Jim Collins hedgehog concept. It's like, what do you actually know that you can do better than anybody else in your industry? Once we have those two things nailed in very short, sharp sentences, it becomes the filter, the lens we apply to every decision we make in the business. Is this moving us towards our core focus? Is this part of our core focus?

Debra Chantry-Taylor  16:17

The next question, the third question, is around our 10 year target. So where are we headed in the long term? And with a family, business is really important. The family itself might have a slightly different target in terms of legacy they want to create, but this is for the business. So we're actually talking about what is it the business actually wants to achieve in 10 years? This is our road. This our compass, if you like. It's like where we're headed in the future. It's designed to inspire and motivate people internally and keep them all rowing in the same direction so we can actually get there. Once we've got that nailed as a team, we then look at things like our marketing strategy. So who is our ideal client, our ideal target market, what is it they actually want to need? What are they looking at for from us? And this helps us to develop our three uniques, our proven process and our guarantee and again, by doing this together as a family business, it's like having all of your mechanics in the room looking at this problem from all different angles and really getting very clear on what is important. And so you're all on the same page in terms of where you're headed once we've got that question, that's our fourth question.

Our fifth question is around our three year picture. So what does it look and feel like in three years time? There's some cold, hard, miserables in there, but also from an emotional perspective, if you work for this company, in three years time, what can you actually expect from it? And again, it's a chance for the family business to all get on the same page to build a business that's more than just numbers. It's talking about the you know, how we're actually going to move the needle towards the 10 year target. So I often say you cannot work out on a spreadsheet how to get to your 10 year target. It's a real it's 10x in your thinking. It's not designed as a we will do this by doing X, Y and Z. It's really as that guiding compass. And then your three year picture does bring it down to the ground. Now we're talking about real things that can actually happen. So how are we going to get to our three year picture? How are we going to get to our 10 year target? And it's really about putting some cold, hard numbers down, but then also some of the things you want. So you might be going into a new market, opening a new office. It could be that you're launching a new product. It could be that you're winning awards. You're the thought leaders in your industry. It's really painting that picture.

Debra Chantry-Taylor  18:18

One of my family businesses, I love them to pieces. They come up with the idea that they would love to have a go kart track around their where their factory is. And, you know, that was just something. It's not really part of the business, per se, but imagine, as an employee of that business, how that makes you feel, that there's actually they're creating an environment where you actually want to be so it can be those kind of things. It can be winning awards. It can be, you know, new products, new services, where you're headed, whatever it might be. But it really is about bringing that 10-year target right the way down to the ground. That's the vision part of the vision. Traction. Organiser, there the five questions. The next three questions really come down to the traction part of the vision. Traction. Organiser, and in the traction part, we're talking about three things.

First of all, the one year plan. What are the three to seven goals we need to get done in the next year that moves us towards our three year target, being really, really clear about the measurables and the finances and the things we're going to do to actually get there, then broken further down into 90-day rocks. What are the 90-day things that we have to, actually have to do? So they're things that we need just distinct bits of work that will actually move the needle, what will make the car go faster? And then finally, we've got the issues. It's the long term issues list. This is like the parking lot for those ideas, those things that are coming up. They're not in these 90-days. They need to be parked because we shouldn't be focusing on them. We don't lose sight of them. So we keep them on that issues list, the long term issues list. So actually, you can visit it in the next quarter and go right now is the timing right. So that is a very broad overview of what we do in terms of bringing a pit stop in for the family business. We're talking about taking your car off the track, giving a chance to really work on it and think about the things that will actually improve it, getting everybody on the same page, or the team as a whole who knows exactly what they need to do to win that F1 race before we then put the car back out on the track. It's really a shift from being reactive to very much proactive. It's about laser, sharp focus. Less is more or less, but obsessed. So being from overwhelmed to focused is really important, and it's from kind of trying to do it all to doing what matters. And that really comes down to having some traction in the business, building something really world class. And Gino Wickman always says, vision without traction is hallucination. What I find is most family businesses have got a really strong vision about where they want to head, but what they don't have is the how do we actually execute on that?

Debra Chantry-Taylor  20:35

So by using the EOS tools in the family business, doing an EOS pit stop, we're really going back to basics. Most of the businesses I work with are reasonably large. You know, they're somewhere between 50 and 600 employees. So we're not talking about a business that isn't already doing good business. This is about taking the car off the track to fine tune it so it can actually go back onto the track and become an F1 leading race car. So just to recap some of those key points. You know, fast growth needs structure, whether it's a family business or not, every single business that is growing fast needs some structure. Is that clarity that creates confidence. It's the things that stop the wheels from falling off in the middle of the race family dynamics. They also need clarity. You know, when you're working in a family business, if you can start to be really clear, take the emotion out of it, get on the same page in terms of where we're headed, who we are, what we want to do.

But more importantly, what role do you actually play in that? And then it having the meetings and the tools to actually get together on a regular basis and touch base and make sure we're doing it. Have we got the right people in the right seats? And I guess that, you know, EOS gives family businesses both that they give it the structure and they give the clarity that those family dynamics need.

Debra Chantry-Taylor  21:46

That is my analogy for today. That is, obviously, I speak very fast. I think very fast. I'm just sharing some of these nuggets with you. I'm going to go into more depth around some of these in future podcasts. But what I wanted to just say, you know, if your business is going really fast, please, please, please. My desperate plea to you is, take the pit stop.

You'll come out stronger, faster and ready to win the race without the wheels falling off. And if you're curious about whether your family business needs a pit stop, let's chat. I'd love to hear what's going on in your world. I can sit down with you, do a very, very quick call, see what's going on, see if there's any opportunity to help you, and then we can talk about what that might look for look like, then we can find out what that might look like. So that is my little family business thing.

As I said, it's one of my passions. I really enjoy helping family businesses to get that clarity. Clarity creates confidence. Less is more less, but obsessed if we can just get that laser sharp focus and get the team all working together for the greater good, will have a much more successful family business.

Thank you for listening.