Business operating systems (BOS) make companies more efficient and drive them toward their goals. How? These systems help organizations clarify responsibilities, establish precise procedures for resolving issues, identify ways to improve as well as implement the performance and culture they want, as well as provide a range of other benefits.

Read on to learn what a BOS is, how to create one, and which business operating systems are on our list of favorites. 

What is a Business Operating System?

What exactly is a business operating system? We like to break it down like this: a  business operating system outlines the what, why, when, and how of company responsibilities. 

These systems serve as a guidebook that leads the team through understanding their roles, sharing the same values and vision as well as working towards common goals. 

What is the Purpose of a Business Operating System?

A business operating system can serve many beneficial functions. The main purpose of the system, however, is to improve efficiency: unify the team, streamline communication and promote shared goals. 

What does this mean for the day-to-day operations of a company? A business operating system can help coordinate teams and drive them towards common goals, whether that be in terms of performance, culture, or growth. 

According to Indeed, “ This effort can lead to a more harmonious work environment that retains good employees and rewards them for their hard work.”

How to Create a Business Operating System

There’s no one-size-fits-all answer to this question – the best way to create a Business Operating System will vary depending on the specific needs of your company. However, there are some key steps you can take to get started.

Business operating systems are typically made up of five parts: processes, systems, roles, skills, and structure. Let’s discuss how to utilize each element to develop an effective operating system for your organization.

Develop Processes

Processes are the specific actions that need to be taken in order to complete a task. Processes make inefficiencies easy to locate and adjust, which can help you quickly update and implement a more efficient plan. 

When creating processes, it’s important to make them as clear and concise as possible. Ambiguous or complex processes can lead to confusion and frustration among team members.

Establish Systems

Systems are the tools and methods that will be used to carry out processes. Successful systems are:

  • “Specific to a task
  • Applicable to the company’s overall targets
  • Reproducible for every employee at every level
  • Measurable against company goals”

Define Roles

Roles are the specific functions that need to be carried out by individuals or teams. In a business operating system, roles should be clearly defined, outlined in the job description, and planned with growth in mind. This allows team members to clearly understand their responsibilities and expectations  as well as have a path to grow in the role. 

Further, leaders should consider aligning roles with company culture and goals. 

Align Skills with these Roles

Aligning skills with specific roles can simplify hiring and drive team members towards success. Team leaders should consider a mix of hard skills –professional capabilities such as experience with software– and soft skills – qualities like being well-organized or personable to align with job roles.

Create an Overall Structure

Structure ensures the above elements come together and are supported in an efficient way. How? An effective structure supports employees, reflects company values, and reflects the long-term goals and strategies of the organization. 

The Top Business Operating Systems in 2022

Now that we’ve gone over what business operating systems are and how to start the process of implementing one for your business, let’s look at three of our favorites of the top systems for businesses in 2022.

EOS Traction

The Entrepreneurial Operating System, or EOS, utilizes a set of simple concepts and practical tools used by more than 170,000+ companies around the world to clarify, simplify, and achieve their vision. EOS focuses on the 6 key components of any business: Vision, People, Data, Issues, Process and Traction. The goal of EOS is to create: “A healthy, focused leadership team and organization that makes continual progress towards achieving everything in their vision.”

Scaling Up

Scaling Up performance platform focuses on the Four Decisions® methodology that outlines the elements that every company must get right: People, Strategy, Execution, and Cash.  The Scaling Up BOS works off of a series of One-Page Tools including the famous One-Page Strategic Plan and the Rockefeller Habits Execution Checklist, which more than 70,000 firms around the globe have used to scale their companies successfully.

What Matters: OKRs

From investor John Doerr comes the case for ambitious goal setting and meticulous execution. OKRs, or Objectives and Key Results, help businesses unify their culture, clarify communication and promote shared goals. The OKR Formula starts with an Objective at the top and 3 to 5 supporting Key Results below it. They are often written as a statement: i.e.: I will (Objective) as measured by (Key Results). The OKR methodology has been used by Google, Allbirds, Apartment Therapy, Netflix among others.

Each business operating system has its own set of features and benefits, so be sure to do your research to find the one that best fits your company’s needs. Implementing a business operating system can be a game-changer for your business, so don’t hesitate to give it a try!

How to get company-wide buy-in for a new Business Operating System (BOS)

Many businesses benefit from implementing Business Operating Systems (BOS) in order to improve performance and culture. However, getting company-wide buy-in can be difficult. Implementation requires focus, time and an allocation of resources away form the day-to-day status quo. Here are a few tips:

  • Educate employees on the benefits of a BOS.
  • Explain how the BOS will impact their daily work lives.
  • Get input from employees on what they would like to see in a BOS.
  • Train employees on the new BOS.
  • Be patient; it takes time for employees to get used to a new way of doing things. 
  • Ask for help from implementers, coaches, facilitators (your outsourced HR provider) or a fellow business owner. 

Need Help Implementing Business Operating Systems?

These systems can bring a host of benefits to a company – such as improved communication and efficient processes – but implementing them can be a tricky business; employees may feel left behind or lost in a sea of new company jargon if not properly supported in the implementation of a BOS. The solution? Culture Works.

We partner with leadership staff to operationalize culture and support the implementation of your company’s BOS so your whole team feels aligned with the what, why, who, where, and how of the system (what is it, why are we using it, who is using it, where is it taking us, and how do we use it?).

Read on to learn more about what we do and check out our operations package. Then, learn why role alignment is the golden ticket to your next key player.

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