In this episode, we're joined by Don Maranca, founder of JDSM Enterprises, a coaching company that helps entrepreneurs implement the Entrepreneurial Operating System (EOS) model in order to create a holistic system for running their business.Today we discuss why Don decided to start his business, the EOS model, three key aspects of business systems included people, processes, and infrastructure, and the challenges Don faced along the way.
JDSM Enterprises is the parent company that houses the franchise company, The Alternative Board. At TAB, "We come together as business owner on a monthly basis and get peer advice, there's also a coaching component."
Don now has three official full-time employees and two contractors. The business has grown quite a bit lately, but it wasn't always like that. Don had to build local credibility, which is why he decided to buy an existing business. It took about three years for Don to get to know the existing clients and the area.
"I knew, as a business owner, that business owners would still struggle implementing strategy across the entire organization. I didn't really see anything that I liked in terms of strategy and implementation, so I started creating my own model. But then I read the book Traction in 2015. Once I read Traction, everything made sense."
Greatest Challenge for Business Owners
"It really depends on what stage they are in their business and also what stage they are in maturity and in running that business as a leader. In the beginning, they think they can do everything, and they try to do everything, and they have a certain way of doing it and they think they do it best. It's hard for them to let go of things. As they grow, they have to learn how to delegate and elevate, have trust and faith that other people will do what's best."
"Once they have a team that's helping them grow, it's developing a leadership team within that team."
"From an EOS standpoint... a lot of it is people-related... Part of it is the people side of things, but the other side of it is clearly communicating their vision and how they're going to get there. It's usually in their head, but they're not necessarily sharing it with people."
Importance of Vision
Everyone wants to know "Why?". What's the purpose behind it? What's in it for me, what's in it for the company?
"These days, the leadership style that's required is to be genuine, intentional, and authentic... when you're sharing the vision in your head... it makes you more authentic and transparent."
Don likes to ask about their personal vision. The vision isn't always related to just business - it needs to incorporate both personal and professional vision. Often, business owners may be focused on material things. As they grow and evolve as a leader, those often become less and less important. Family, free time, legacy, and impact on employees usually becomes more important.
Is there shame in material goals? According to Don, this is not a shameful goal - but it also usually isn't the root goal. If your motivation is material items, there's generally something else that you actually want. Uncovering these underlying goals will allow you to embrace your true motivating factors - these underlying motivators are what can actually keep you going during the difficult times.
Three Key Aspects of a Business System - People, Process, Infrastructure
People: Who are you as an organization and who do you employ? Who creates the vision? Who creates the products?
Process: How? How do we do what we do with the people we have?
Infrastructure: The tools that we use to process our how.
"If there's an issue with the company, it's either related to a people issue, or a process issue - how you're doing things, or an infrastructure issue. You can have great people, but if your processes stink and you don't have things systematized, you're relying a lot on your people and probably holding your people back."
All three of these are interrelated. Sometimes it can be tough to diagnose which area is the culprit.
Assuming your processes are documented, you also have a "followed by all" concept. Team members need to be trained, monitored and measured, and held accountable.
"In order for it to be ingrained in your culture, first you have to communicate it."
"We always start high-level. In EOS... we use a 20/80 rule. Document 20% of the steps that will get you 80% of the results... When you do that across the entire organization, you start to see the big picture and people don't get too lost in the details."
"People don't fear change. People fear what you're doing to them to make them change. They're more open to change if they know the 'Why' behind it."
Naturally, people want to grow and improve. Business owners must be able to demonstrate how changes are supporting the overall vision. Team members need to be involved in that change. If team members are part of the solution, they're more on board with the change.
Learn more about Don and his work: https://jdsmenterprises.com/