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Why a BOS is fundamental to the success of your company

More businesses fail than succeed. That’s an unfortunate reality. Leaders and their teams are understandably often busy working in their businesses rather than on their businesses.
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More businesses fail than succeed. That’s an unfortunate reality. Leaders and their teams are understandably often busy working in their businesses rather than on their businesses.

But operating a company without a clear view or shared understanding among all employees of the strategic plan for achieving goals puts the organization at risk. 

Author Verne Harnish highlights this peril in his book, Scaling Up: How a Few Companies Make It … and Why the Rest Don’t.

To minimize risk, achieve strategic goals and add value for customers, leaders must share their strategic plan, explain how the company will execute on that plan and make sure the entire team is clear and on board. That’s where a business operating system (BOS) comes in. 

A BOS refers to how a business operates systematically and enterprise-wide. Much as a computer operating system ensures the collection of software and hardware resources on your computer functions and works together, the collection of tools and processes and interconnections that gets your product or services delivered to your customers is your BOS.

Establishing a BOS offers many benefits, including:

•Creating organizational alignment – individuals develop an understanding of the company’s direction and the role that they play in helping to achieve success.

•Identifying key performance indicators (KPIs) – KPIs provide a focus for the entire organization. They communicate what is important in a standard, easily understood format.  These measures are reviewed on a regular basis and demand problem-solving activity that leads to continuous improvement.

•Providing rapid system changes through feedback loops – individuals and teams have the means to understand, discuss, analyze and make informed decisions about their area of influence based on the facts collected for each key measurable.

•Focusing employee involvement – a BOS ensures that projects and problems selected for action are the ones that can demonstrate a measurable benefit to the company.

•Promoting efficient use of resources – establishing key metrics allows business priorities to be determined based on data and facts rather than guesswork.

•Promoting teamwork – by using a common language and tools, effective communication occurs and promotes problem-solving competency at all levels of the organization.

•Building accountability – at every level of the organization, employees are held accountable for their performance and are responsible for making the necessary changes that are within their control.

•Shifting corporate culture – a BOS provides a framework for a strong cultural shift over a short time that is focused on internal and external customers and the value of the employee at every level.

What are the usual pitfalls? 


In a nutshell, running before you walk. A common danger in business is failing to plan. Organizations that don’t have a systematic approach that can be emulated might be using processes and structures that don’t add value. 

Authors Daniel Jones and James Womack (Lean Solutions: How Companies and Customers Can Create Value and Wealth Together) modified Alfred Chandler’s management theory that asserted strategy precedes structure into their lean approach under which strategy precedes process and process precedes structure. This customer-centric method means the leadership team is continually asking how the company adds value over the longer term. And that is crucial.

How to get started?


If you want to create a BOS for your company, ask a few fundamental questions. Simon Sinek, author of Start with Why, lists some good ones, including why does your company exist? and if your company were to close tomorrow, who would miss it and why? 

Take these preliminary steps:

•Take stock. Start with your “why.”

•Get the leadership team meeting regularly and taking time to work on the business.

•Determine whether you’ll use an existing BOS framework and tool set or create your own. There are great online resources available (search “business operating system”) to help with the decision and resource materials such as books, videos and tool kits.

•Seek alignment on which areas of the business are the most important to work on (e.g., people, strategy, execution, cash) and start there.

•Establish a meeting schedule (annual, quarterly, weekly, daily, same-page meetings for executive teams).

•If you need it, get external coaching for support and to accelerate establishing your BOS.

Are you ready for a BOS? There’s no better time to get started than the present. •

Casey Miller ([email protected]), president of Six and a Half Consulting, is a leadership and team development specialist. His consultancy teaches organizations the skills needed to create motivated and inspired workplaces.