Second Step to Implement EOS: Rocks

Continuing with the series on implementing the Entrepreneurial Operating System (EOS), today I share the 2nd of 7 steps. The 2nd step is called, “Rocks.”

The terms “Rocks” comes from the analogy popularized by Stephen Covey (watch the video below to see Covey discussing the principle). The concept is that efficiency relies on attacking big things first.

EOS recommends that startups delineate the Rocks for every person in the organization on a quarterly basis. Every person should be responsible for 1-3 Rocks each quarter and should be held accountable for the Rocks.

The process of determining quarterly Rocks for an organization takes an entire day of focus for the management team. It begins by the management team writing all the issues the company faces on a whiteboard. Then the goal becomes the elimination of all issues that should be ignored in the next quarter.

The overriding motivation behind Rocks is that a company that focuses on everything is actually focusing on nothing. Rocks help limit the focus of a startup to the critical items that actually matter. Rocks prevent people from working on distractions or shiny new objects. Rocks are vetted by the entire management team.

Rocks should be as specific as possible. For instance, the Rock to “hire a VP of marketing” is not specific, while “narrow down the candidates for the VP of marketing position down to two possibilities by the end of the 3rd quarter” is much more specific.

Does your startup set Rocks each quarter for all employees?