I recently read about two studies that reveal how companies that see the best performance are the ones that use professional management techniques as defined by setting targets, rewarding performance, and measuring results. One of the studies was based on an analysis of companies that died, survived, and thrived during the “great recession.”
In the second study, economists provided free management advice to a randomly chosen group of Indian textile plants and compared their performance with a control group. A year later, the companies that implemented their advice had improved their relative productivity by 17%.
The economists conclude that good management is tightly linked to improved corporate performance measured in terms of productivity, profitability, growth and survival. Good management is more like a technology than merely an adjustment to circumstances. Certain successful management practices can be applied to “many horses on many courses.”
EOS® Innovates on Core Principles
EOS is one of those rare innovations that has lasting power, based on a focus of business/management fundamentals and core principles. This is especially true considering the researcher’s findings that firms run by their founders or their children have among the worst performance. The EOS focus on small- to medium-sized entrepreneurially-based independent organizations has much to offer most firms in the US.
Not only do EOS run companies measure the core indicators of company performance – productivity, profitability, and growth which most ensure survival – they also measure how well organizations are doing at implementing and maintaining the core principles of management. It’s a real-time science.
Measuring core principles of management and performance outcomes are only two components of the power of EOS. EOS-run organizations tie their performance measures to a crystal-clear vision on where they want to go and how to get there. They have a tremendous amount of traction by focusing on the accountability and discipline required to execute well. And EOS creates a healthy team culture as defined by a level of trust and openness required to identify, address, and solve difficult issues.
The Transformative Power of EOS in Your Company
As your leadership team goes, so goes the rest of your organization. Imagine your company becoming a measurably well-run business with leaders that are all rowing in the same direction. You use measured discipline on your execution plan, and you have cascading team members who consistently measure their contributions. In short, EOS creates an unstoppably focused, disciplined, and competitive organization with true longevity in the market. It’s economic science!