Traction – Book Review

I recently started working at a tech startup based out of Minneapolis called Dispatch. Honestly, I had a really good feeling about it after the first phone interview, and walking out of the in-person interview, I knew I wanted to work there.

Why? Because of the environment.

You could just tell there was something about that place. Something that made it different than other companies. And yes, it’s a startup, but that’s not what I’m talking about. The culture there was, and is, amazing.

Then I found out that everyone at the company reads this book called Traction by Gino Wickman. After reading it, I can tell you that this book is the reason I, and many other people who now work with me, could feel something special about the company before they even really understood the product or the mission.

Traction is all about “getting a grip on your business.” I think that anyone who starts a company will tell you that one of the hardest parts is gaining traction. Coming up with the idea is really fun, and so is running an existing system, but trying to get it started is a grind and sometimes not a whole lot of fun.

The author takes us through what he calls the EOS process, which stands for The Entrepreneurial Operating System. Wickman argues that there are 6 “Key Components” to each and every business and that by mastering and systematizing those six elements, you’ll be on your way to business success.

The Six Key Components, in order, are Vision, People, Data, Issues, Process, and Traction. Each category has its own chapter in which the reader is taught how to optimize their business efficiently and effectively in that area.

Although I’d heard of many of these principles before from other books, podcasts, and sources, I was pleased to find a book that took all those things from various places and put them all in one easy-to-read format.

Here are a few things I learned from each chapter:

Vision:

• Make sure EVERYBODY on your leadership team is on the same page. Don’t just assume that everyone sees things the same way. Your goals and strategies should be written out and agreed upon, and then passed down to your entire organization so everyone is aligned.
• Determine your core values, and stick to them. Hire, fire, and promote based on those values. This plays a huge part in creating an amazing culture that people want to be a part of.
• “Decide what business you are in, and be in that business.” I love that quote. Don’t spread yourself too thin! Figure out what your specialty is, and refuse to deviate from it – not even to make a sale – unless there’s an incredibly good reason for doing so that aligns with your long term vision.

People:

• I’ve heard it said that you shouldn’t care which way the bus is going as long as the right people are on it. Why? Because if they’re the right people, they’ll figure out they’re going the wrong way sooner or later! Traction teaches that you need to find the right people who really want to be a part of your mission and share your values, who have the ability to perform the role you’re hiring for, and have the capacity to do their work well.
• After securing the right people, make sure they’re in the right seats. The right person in the wrong seat creates angst for both that person and everyone who works with them – move them and everyone is happier.
• Don’t waste time deciding to fire someone who you know needs to be fired. This might sound really mean, but honestly, if it’s not a good fit, then that person isn’t happy, their co-workers aren’t happy, and you’re not happy. Sure, firing them will create some awkwardness at first, but after about 36 hours, EVERYONE, including the person who was let go, feels better.

Data:

• Having a scoreboard is essential to winning in anything – especially business. Goals must be measurable and attainable, and every person in your organization should be responsible for a certain number that is within their control. As best selling author and top leadership expert Orrin Woodward says, you need to constantly “face brutal reality” and not be afraid to look at your scoreboard. You cannot expect to win if you ignore your data just because it isn’t what you hoped for. Ignoring your problems doesn’t make them go away (unfortunately).
• Do NOT set subjective goals such as “our target is to have happier customers by the end of the month.” How are you supposed to know if you hit that goal? It gives you a lot of room to just “feel” like you hit it and deceive yourselves. Instead, say, “our target is to have a customer rating of 8/10 by the end of the year.” That way, there’s NO grey area. It’s either, “yes we hit it,” or, “no, we didn’t get it.”

Issues:

• Issues are easier to solve when they’re small. The book talks about the IDS process – Identify, Discuss, Solve. Make sure your team understands the root problem of the issue (this should take up the majority of the session), discuss how to solve the problem, and then take action to solve it. Give someone accountability and a deadline for that task and follow up on it at your next regular meeting.
• Create an environment where people feel safe bringing up issues. One company apparently made it a rule that you couldn’t attend the meeting unless you brought 2 issues to the table to discuss. Your people need to know that you’re not going to get mad at them if they present issues. Otherwise, problems will hide and fester within your company until they become bigger, harder, and more expensive to handle.

Process:

• Every department should have processes – the “way” you do things. This makes is so much easier to hire and train people in, not to mention it creates consistency for yourselves and your customers. Have each department document all their processes into a written format so that it can be continually referenced. Creating set processes makes it much easier for your company to grow and expand its goals + revenue.

Traction:

• All the teaching in the world means absolutely NOTHING if you don’t apply it. The Traction section of this book gives you a plan of action for implementing these strategies so you can start seeing the results you want sooner.
• The two basic components of Traction are Rocks and Meeting Pulses. Everyone should have their “Rocks” for the quarter, month, and week. And each department should have regular meetings quarterly, monthly, and weekly to make sure everyone’s on the same page regarding those goals. This makes it much easier for people to remain focused on what’s important.

All in all, Traction is a fantastic book and I think it’s a must-read for anyone who wants to own their own company. The author has used the EOS method to mentor many other businesses of various sizes, so he has experience and fruit on the tree. It’s a great way to make sure you’re organized in your work, and on track for hitting your goals.

Don’t care about starting your own business? Read it anyway. The principles being taught can be applied to the work you do within your role at your company and make you a more productive employee if you’re consistent.

Until next time,
Hope Frances