What is EOS: How Six Questions Can Make Your CPA Firm More Efficient

What do 25% or more of the CPA firms we see use to better operate their businesses? A system called the Entrepreneurial Operating System, or EOS for short.

What is EOS in a nutshell?
EOS is a business management system designed to help entrepreneurs achieve their vision. It was developed by Gino Wickman and detailed in his book Traction: Get a Grip on Your Business. It is particularly helpful to small- to mid-sized firms that need to tighten up their internal operating processes. While much has been written about it, I will explain the major parts and how they relate to CPA firms.

Why are CPA firms using the EOS model?
EOS helps if firms experience:

• A fuzzy vision
• Leaders’ roles overlapping or being unclear
• Weak accountability – even if intentions are good
• Tolerance of transgressions of core values, demoralizing key players

We’ve found that CPA firms who use it tend to:

• Be clearer about their target market and revenue goals
• Have an ongoing meeting cadence to manage the business
• Have higher accountability in reaching goals
• Have more long-term visibility as to where the organization is heading

Six questions that cover the major components of the EOS model:
The EOS model is built around the six components below. We have created key questions to consider in each area.

(1) Vision

• What is your ideal future state as a CPA firm?
  • Is it clear, concise and inspiring to all team members?
  • Does the vision differentiate you from your competitors in your customers’ eyes?

(2) People

• Do you have the right people in the right seats to get the job done?
  • People need to understand how to do their job, need to want to do it, and need the capacity to do it.
  • Values are clear and transgressions are not tolerated.

(3) Data

• Are you tracking and managing the key metrics that are most important to your firm’s success?
  • Are you collecting and analyzing data effectively to make informed decisions?
  • Does the leadership team have an updated dashboard that they use to manage the firm well?

(4) Issues

• Do you regularly identify the biggest challenges that are facing your firm?
  • Are you surfacing and then solving issues ongoing?

(5) Process

• Are your firm’s current processes aligned and effective?
  • Have you defined what the key service delivery and internal processes are?
  • Is your service delivery process unique or more valuable than your competitors’?

(6) Traction

• Are the leaders holding themselves accountable to achieving the vision?
  • Do you have a cadence of leadership meetings that tracks to your vision and keeps the organization on course?

Strategic Planning & Goal Setting for Results is the ultimate Cliffs Notes guide to strategic planning and partner goal setting for CPA firms. The book addresses: Insights into the three main phases of strategic planning • Steps to creating a strategic plan that drives results • Stimulating productive and creative brainstorming sessions • Best practices for goal setting • Exploring the core values of your firm’s identity and vision statement • Keys to seamless implementation of the strategic plan and navigating potential pitfalls along the way • Partner accountability

Purchase your copy today!

How do CPA firms implement EOS?
Typically, there are two buckets we see firms choose if they like the EOS philosophy:

• Self-Implement
  • Many firms will read the book or study the EOS model and then do it themselves. The benefit is that it’s cheaper than bringing in outside resources, and you can pick and choose what parts you need most. Firms may need to “grow into” this system if nothing is currently in place, as there is a lot of rigor in the full-blown EOS model. The con is that patchy or selective implementation may ultimately fall short of the results you want for your firm.
• Get help with implementation
  • EOS certifies professionals to help firms implement their system. Other consultants also do this, albeit it may not always be a “full-blown” implementation but it can be more tailored to your CPA firm. Benefits of getting outside help are that you’ll likely get to a more rigorous version of the EOS principles and can learn from other’s experiences. Cons are the cost and the amount of customization to your firm depends on who you bring in to help.

Overall, we see firms advance in their performance regardless of which path they pick since the principles that underlie EOS are tried and true tools that have been around for a long time. If your firm is struggling with its operations, this is something to check out to see if it could help you manage the firm better.