EP44: A realistic look at EOS

At DemandMaven, we work with countless bootstrapped founders and growing PLG SaaS companies navigating the complexities of scaling their operations. In this week’s episode of the In Demand Podcast, Asia and Kim tackle a question that comes up frequently: should you implement the Entrepreneurial Operating System (EOS) in your organization?

What is EOS exactly?

The Entrepreneurial Operating System (EOS) is a complete set of practical tools and simple concepts designed to help entrepreneurs get what they want from their businesses. Created by Gino Wickman and popularized through his bestselling book Traction: Get a Grip on Your Business, EOS strengthens what it calls the “Six Key Components” of any business: Vision, People, Data, Issues, Process, and Traction.

Originally positioned for privately held entrepreneurial companies with 10-250 employees, EOS has gained significant popularity among entrepreneurs looking for structure when business feels chaotic. The framework promises to help leadership teams get better at three core areas: getting everyone 100% aligned on where the company is going, instilling focus and accountability throughout the organization, and creating a more cohesive leadership team.

EOS consists of several core components:

Meeting cadence and structure: EOS prescribes specific meeting rhythms, including the L10 meeting for leadership teams. These meetings follow set agendas focused on scorecards, issues, and priorities.

Metrics and scorecards: Companies track 5-15 key performance indicators that serve as leading indicators of success, with 1-3 of those being the ones that are a true ‘health check’ for the business and/or department. The idea is to limit focus to metrics that truly signal business growth or contraction and review if they’re on or off track on a weekly basis.

Right people, right seat philosophy: EOS emphasizes having the correct people in appropriate roles, supported by accountability charts that clearly define everyone’s responsibilities.

Visionary and Integrator roles: The framework identifies two critical leadership positions—the Visionary who sets direction and the Integrator who translates that vision into operational reality.

Issues tracking (IDS): Teams identify, discuss, and solve problems systematically rather than letting issues fester or talking in circles with no clear and actionable solution.

Vision alignment: Everyone in the organization understands the 1-year, 3-year, and 10-year targets, ensuring the entire team marches in the same direction.

Process documentation (The Way): Core business processes are documented so everyone understands how essential functions operate.

EOS sounds great—on paper

The appeal of EOS is obvious—it promises to transform chaotic organizations into well-oiled machines. The framework addresses real pain points that growing companies face.

Many of EOS’s individual components make sense. Having clear metrics is valuable. Regular strategic meetings can drive alignment. Documenting processes prevents knowledge silos. The problem isn’t with these concepts individually—it’s with the assumption that implementing the entire system will automatically solve organizational challenges.

Where EOS falls apart—in practice

The flat organization problem: Many bootstrap founders operate with flat organizational structures—no (or minimal) management layers between leadership and individual contributors. When you implement EOS meetings in this context, you end up with what Asia calls “the king holding court.”

Individual contributors often lack the strategic perspective needed to meaningfully contribute to discussions about company-wide issues or high-level metrics. They’re focused on tactical execution, not business strategy. This creates awkward meetings where the CEO does most of the talking while everyone else sits in uncomfortable silence.

Strategic thinking gaps: EOS assumes your team can engage in strategic problem-solving discussions. But if your individual contributors haven’t been empowered over time to think strategically or solve problems collaboratively, you’ll find that issues tracking sessions become one-way conversations rather than productive team discussions.

Implementation overhead: EOS comes with significant complexity—templates, specific meeting formats, scorecards, accountability charts, and more. For small teams already stretched thin, this administrative overhead can become a distraction from actually running the day to day of the business.

Cultural mismatch: The rigid structure of EOS meetings, including elements like the “segue” portion where everyone shares a win, can feel forced and awkward, especially for remote teams or organizations with different cultural norms.

Taking what works, leaving what doesn’t

Rather than implementing EOS wholesale, we’ve seen many successful companies pick and choose elements that fit their context:

Scorecards and metrics tracking: Having 3-5 key health metrics for your business makes sense for any organization. This doesn’t require the full EOS framework—just disciplined tracking of what matters most.

Issues identification and solving: The IDS (Identify, Discuss, Solve) process is valuable, but only if your team has been trained in problem-solving and feels empowered to surface real issues. This often requires cultural development and some training before it becomes effective.

Process documentation: Standard Operating Procedures (SOPs) are crucial for any growing business, especially if you need to bring on new resources quickly. EOS calls these “The Way,” but they’re simply well-documented processes.

Meeting structure: Regular strategic meetings with consistent agendas can drive accountability, but they don’t need to follow EOS’s exact format. Adapt the structure to your team’s communication style and needs.

Goal setting: Whether you call them Rocks, OKRs, or key projects, having quarterly priorities makes sense. The specific framework matters less than consistent execution and accountability.

When fully implementing EOS might work

EOS tends to be most successful in organizations that already have:

• A genuine leadership team (not just a founder plus individual contributors)
• Team members comfortable with strategic thinking and problem-solving
• A culture of open communication and issue resolution
• Sufficient organizational size to justify the administrative overhead

Companies with 50+ employees, established management layers, and existing strategic capabilities are more likely to benefit from comprehensive EOS implementation.

Implementing core values

One EOS component that deserves special attention is core values development. While EOS provides exercises to help leadership teams define company values, this process often feels forced when done as a workshop exercise.

The most authentic core values are discovered rather than decided. They emerge from how the organization actually operates, not from what sounds good in a leadership retreat. 

For smaller organizations, spending time on formal core values documentation may be premature. Focus first on modeling the behaviors you want to see, then codify them when they become natural patterns worth preserving.

A practical approach to EOS

If you’re considering EOS, start with honest self-assessment:

What problems are you trying to solve? Are you looking for better accountability, clearer metrics, improved communication, or more strategic focus? Different problems may require different solutions.

What’s your organizational maturity? Do you have people capable of strategic thinking beyond their individual roles? Can your team engage in productive problem-solving discussions?

What’s your implementation capacity? Do you have the bandwidth to properly implement and maintain EOS systems without them becoming a distraction?

What’s your change management approach? Remember that any new system takes 2-3 quarters to become effective. Are you prepared for that investment?

Rather than viewing EOS as an all-or-nothing proposition, treat it as a toolkit. Extract the components that address your specific challenges, modify them to fit your culture, and implement them gradually as your organization develops the capacity to use them effectively.

You know your company best

EOS isn’t inherently good or bad—it’s a framework that works well for certain types of organizations at specific stages of development. The key is matching your business needs with the right level of systematic overhead.

For most bootstrap founders and small SaaS companies, a customized approach that borrows selectively from EOS while staying true to your organizational culture and capabilities will yield better results than trying to implement the entire system.

The goal isn’t to follow any framework perfectly—it’s to build systems that help your specific team accomplish your specific goals more effectively.

Ready to streamline your operations and focus on what truly matters? Contact us for a free 45-minute growth audit today.