TRACTION by Gino Wickman | Core Message

Summary

The video script outlines Gina Wickman's 'Traction' methodology, emphasizing the importance of focusing on five key components: vision, data, process, people, and issues to drive business growth. It introduces the concept of a '90-day world' with 'rocks' or priorities, individual accountability metrics, and regular, focused meetings to ensure progress and address challenges. By answering crucial questions related to where the business wants to go, what data is necessary, how to achieve visions efficiently, who is responsible, and potential failure points, businesses can establish a solid execution system to gain traction and move forward effectively.

Takeaways

• 🔸 Every growing business is like a 5-spoke wheel with a tire representing the execution system, needing vision, data, process, people, and issue resolution to gain traction.
• 🔸 Create a clear 10-year vision and 1-year targets to guide business decisions consistently.
• 🔸 Track key activities on a weekly scorecard, which acts as the company's heartbeat and motivation.
• 🔸 Identify processes, checklists, and systems to efficiently produce high-quality products/services.
• 🔸 Ensure employees understand their roles, want to excel, and have the capacity to perform well.
• 🔸 Identify and resolve potential issues that could stunt growth and kill the business.
• 🔸 Implement 90-day 'rocks' or quarterly priorities aligned with the company's vision to move forward steadily.
• 🔸 Assign individual accountability numbers/metrics that employees strive to improve daily.
• 🔸 Hold weekly meetings focused on rocks, issues, and action plans to maintain accountability and trust.
• 🔸 Install a solid execution system with rocks, numbers, and meetings to gain traction and realize the business vision.

Q & A

What are the five essential components every business needs according to Gina Wickman?

Vision, data, process, people, and issues.

What does the 'tire' represent in the analogy used by Gina Wickman for a growing business?

The execution system a business needs to gain traction and move up the growth curve.

How does Gina Wickman suggest a business can create a clear 10-year vision?

By setting a goal and a one-year target for the company, helping guide decisions with a compelling 10-year, three-year, and one-year picture.

Why is having a scorecard of weekly activities important for a business?

It acts as the company's heartbeat, providing motivation and a steady stream of data to track improvement.

What analogy does Gina Wickman use to describe quarterly priorities or 'rocks'?

The analogy of a glass jar with rocks, gravel, and sand, where rocks symbolize top priorities.

How can regular meetings contribute to a business gaining traction?

By holding people accountable, maintaining trust, and creating action plans to address the top issues.

What three components are necessary for creating a solid system of execution within a business?

Rocks (90-day priorities), individual numbers, and a regular meeting pulse.

What example does Gina Wickman give to illustrate the effectiveness of having individual numbers?

The story of Charles Schwab improving productivity at Bethlehem steel mill by using chalk numbers to encourage competition and clarity.

How does Gina Wickman relate human nature to the concept of 'rocks' or 90-day priorities?

She mentions that human beings tend to lose focus every 90 days, and setting 90-day priorities helps to address this aspect of human nature.

What is the significance of addressing the 'why might I fail' question in business planning?

It helps to identify and resolve potential issues that could stunt growth or lead to business failure.

Outlines

00:00

🔑 The 5 Essential Components for Business Growth

This paragraph introduces the concept of the 'Five-Spoke Wheel' by Gina Wickman, which represents the five essential components every business needs to survive and thrive: vision, data, process, people, and issues. It highlights the importance of addressing five key questions (where, what, how, who, and why) to strengthen these components and gain traction for business growth. The paragraph uses the analogy of a construction project to illustrate the necessity of each component.

05:01

🚀 Gaining Traction with Rocks, Numbers, and Meetings

This paragraph discusses the three components of a solid execution system for gaining traction in a business: rocks (90-day priorities), individual numbers (metrics to track daily), and regular meeting pulses. It explains the importance of setting quarterly 'rocks' aligned with the company's vision, tracking individual performance metrics, and holding weekly accountability meetings to address rocks, issues, and action plans. The paragraph emphasizes the role of these components in maintaining focus, accountability, and problem-solving to steadily move the business forward.

Keywords

💡Vision

A vision is a clear and compelling picture of where a business wants to be in the future. In the video, vision is described as a long-term goal or target that a company sets for itself, usually spanning 3-10 years. Having a clear vision is crucial for making consistent business decisions and driving the company in the right direction. For example, the video suggests creating 'a clear 10-year vision through your goal and one-year target for your company.'

💡Traction

Traction refers to the execution system or processes that a business needs to implement in order to gain momentum and steadily move towards achieving its vision. The video emphasizes that 'vision without traction is merely hallucination,' meaning that a clear vision alone is not enough; businesses need a solid execution plan to turn their dreams into reality. The execution system, which includes components like rocks, individual numbers, and regular meetings, helps a business gain traction and make progress.

💡Rocks

Rocks are 90-day priorities or quarterly goals that align with a company's overall vision. The video likens them to the 'big rocks' in the time management analogy, representing the most important tasks that should be accomplished first before tackling smaller tasks. By having everyone in the business focus on their rocks for each 90-day period, the company can make steady progress towards its long-term vision. For example, a finance team's rock could be to 'reduce accounts receivables by 10 percent' in a given quarter.

💡Individual Numbers

Individual numbers refer to the specific metrics or key performance indicators (KPIs) that each employee or team should track and strive to improve on a daily or weekly basis. These numbers provide clarity and focus, helping individuals align their efforts with the company's overall goals. The video cites examples like 'sales per hour' for a retail sales team or 'average customer rating' for a customer service agent. Monitoring and improving these individual numbers helps maintain traction and drives progress towards the quarterly rocks and long-term vision.

💡Scorecard

A scorecard is a set of key metrics or activities that a business tracks on a weekly basis to measure its performance and identify potential issues. The video describes the scorecard as 'the company's heartbeat' and a source of motivation, as it provides a steady stream of data that can help the business stay on track. For example, a business might track metrics like sales figures, production defect rates, or customer satisfaction scores on its scorecard to quickly identify problems and make course corrections.

💡Processes

Processes refer to the systems, checklists, and standardized procedures that a business implements to ensure efficient and consistent delivery of its products or services. The video emphasizes the importance of identifying and documenting these processes, as they allow a business to 'reliably produce a high-quality product or service' and achieve its vision more efficiently. Well-defined processes can help businesses streamline operations, reduce errors, and maintain quality control, ultimately contributing to the company's overall traction and growth.

💡People

The 'people' aspect in the video refers to ensuring that every employee in the business understands their role, wants to excel at it, and has the necessary time, energy, and skills to perform their duties effectively. The video stresses the importance of having the right people in the right roles, as this plays a crucial role in a business's ability to execute its vision and gain traction. By ensuring that employees 'get it, want it, and have the capacity' to do their jobs well, a business can maximize its potential for success and growth.

💡Issues

Issues are potential problems, challenges, or roadblocks that could hinder a business's growth or prevent it from achieving its vision. The video advises identifying and resolving any issues that 'could stunt your growth and kill your business.' These issues could be related to various aspects of the business, such as alarming numbers on the scorecard, employee conflicts, client issues, or systemic problems. Addressing and finding solutions to these issues is essential for maintaining traction and ensuring that the business stays on track towards its goals.

💡Accountability Meetings

Accountability meetings, also referred to as 'regular meeting pulses' in the video, are weekly meetings that serve as a mechanism for holding employees accountable and maintaining traction within the business. These meetings typically cover three main agenda items: rocks (quarterly priorities), issues (challenges or problems faced), and action plans (strategies to resolve the top issues). The video emphasizes that well-run accountability meetings foster a culture of trust, vulnerability, and problem-solving, as employees openly share their progress, struggles, and ideas for improvement.

💡Growth Curve

The growth curve refers to the trajectory or path that a business follows as it grows and expands over time. The video likens a growing business to 'a five-spoke wheel with a thick tire tread,' where the execution system (traction) is needed for the business to steadily move up the growth curve. By implementing the various components of the execution system, such as rocks, individual numbers, and accountability meetings, a business can gain traction and consistently progress along its desired growth curve, moving closer to achieving its long-term vision.

Highlights

Every growing business is like a five-spoke wheel with a thick tire tread, representing the five essential components every business needs to survive.

Strengthen the five spokes of your business wheel by answering five questions: where, what, how, who, and why might I fail.

Create a clear 10-year vision through your goal and one-year target for your company.

Your business must have a scorecard of activities you're trying to improve weekly.

Identify the processes, checklists, and systems you will use to reliably produce a high-quality product or service.

Ensure that everyone in your business understands their role, wants to excel at it, and has the time, energy, and skill to do it.

Identify and resolve any issues that could stunt your growth and kill your business.

Vision without traction is merely hallucination.

To create a solid system of execution within your business and gain traction, you need three components: rocks, individual numbers, and a regular meeting pulse.

Rocks are 90-day priorities that align with the company's vision.

Individual numbers clarify commitment and competition, which increases traction and produces results.

A regular meeting pulse holds people accountable and maintains traction with agenda items on rocks, issues, and action plans.

The way you move the company forward is one 90-day period at a time.

Ensure that everyone in your business is focused on one to five rocks every 90 days.

Hold weekly meetings with agenda items on rocks, issues, and action plans to solve big issues before they slow your company's growth.

Transcripts

foreign

[Music]

ly read traction by Gina Wickman

every growing business is like a five

spoke wheel with a thick tire tread

the five spokes represents the five

essential components every business

needs to survive and the tire is the

execution system a business needs to

gain traction and move up the growth

curve

strengthen the five spokes of your

business Wheel by answering five

questions

where what how who and why might I fail

first where do I want to go

create a clear tenure Vision through

your goal and one year Target for your

company

the key to consistently good business

decisions is having a clear and

compelling tenure three-year and

one-year pitcher to help guide your

decisions

next what data do I need to track each

week

your business must have a scorecard of

activities you're trying to improve

weekly

the scorecard is the company's heartbeat

and provides a steady stream of

motivation

next how will I achieve my vision as

efficiently as possible

identify the processes checklists and

systems you will use to reliably produce

a high quality product or service

then who is doing the work and do they

get it want it and have the capacity to

do it well

you must ensure that everyone in your

business understands their role wants to

excel at it and has the time energy and

skill to do it

and lastly why might I fail identify and

resolve any issues that could stunt your

growth and kill your business

the where what how who and why questions

address the vision data process people

and issues categories of author Gina

wickman's entrepreneurial operating

system EOS

an easy way to see the necessity of each

question category is to imagine you're a

construction manager building a house

first asking where do I want to go will

get you to imagine the final house

construction and then plan out the steps

you need to take to achieve your vision

like pouring the foundation and

completing the house framing

asking what data do I need to track each

week will get you to track your man

hours material costs and percent

complete for each Milestone to ensure

you quickly identify problems and keep

your project on track

asking how will I achieve my vision as

efficiently as possible will get you to

build Trident true processes based on

past projects that allow you to build

houses faster cheaper and of higher

quality than other builders

asking who is doing the work and do they

get it want it and have the capacity to

do it well we'll ensure you carefully

select subcontractors you trust to get

the job done

and asking why might I fail well I'm

sure you get the long delivery materials

ordered immediately and be on the

lookout for any issues that could derail

your project

after addressing all five questions you

might be confident that your project

will go smoothly but if you don't have a

reliable execution system in place your

host construction project will quickly

go out the rails the same is true for

business ventures

when a business owner fails to install a

system of execution within their

business they lack the traction needed

to move their business Vision forward

and steadily move up the growth curve

as author Gina Wickman likes to say

Vision Without traction is merely

hallucination

to create a solid system of execution

within your business and gain traction

you need three components rocks

individual numbers and a regular meeting

pulse

first rocks

rocks are 90-day priorities

Gina Wickman says human beings stumble

get off track and lose focus roughly

every 90 days

to address this aspect of human nature

you must Implement a routine throughout

the entire organization that creates a

90-day world

when everyone in your business has a

90-day priority that aligns with the

company's Vision your business stops

spinning its wheels and everyone in your

business starts steadily moving forward

in unison

Wickman uses the term rocks to describe

quarterly priorities because it brings

to mind the time management analogy from

Stephen covey's book first things first

picture a glass jar on a table next to

that glass jar are rocks gravel and sand

the space in the glass jar represents

the time available in your workday

the Rocks represent your top priorities

the gravel represents your day-to-day

responsibilities and the sand represents

everything else you could hit with

during the day

most people pour the gravel and sand in

first and leave little room for rocks

catch up on email have long

conversations with co-workers and

complete their day-to-day

responsibilities but fail to do

significant work that moves the business

forward in any meaningful way

but suppose you get everyone in your

business to put their rocks in first by

reserving their Peak Focus time each day

to make progress on a 90-day priority

that moves the business towards its

vision

in that case the business gains traction

and your people still have enough time

left over to take care of their

day-to-day responsibilities and deal

with whatever issues come their way

during the day

get all the leaders in your business to

develop and distribute 90-day rocks to

their teams by recalling the company's

tenure Vision through your goal and one

year Target and then asking what does my

department maybe Finance operations or

sales marketing need to accomplish in

the next 90 days to hit the company's

one year Target

the person leading your Finance team

might have a quarterly Rock to reduce

accounts receivables by 10 percent

the person leading your operations team

might have a quarterly Rock to produce

product defects by 20. and the person

leading your sales and marketing team

may have a quarterly Rock to hire a new

sales manager or partner with an online

influencer for a new product promotion

campaign

you must ensure that everyone in your

business is focused on one to five rocks

every 90 days and has new rocks for

every 90-day period

as Gina Wickman says the way you move

the company forward is one 90-day period

at a time

the second component of a solid

execution system is individual numbers

in the early 1900s one of Charles

Schwab's Bethlehem steel mills was

struggling to meet its quota so Schwab

walked into the mill with some Shock and

asked the nearest man how many batches

of refined steel his shift finished that

day the man said six so Schwab drew a

big number six on the floor in chalk and

walked away

when the night shift came in they saw

the six and asked what it meant a disha

person explained that the big boss came

in and asked how many batches of Steel

they'd produced and wrote down the

number on the floor

the following day Schwab walked back

into the mill and asked the night shift

their production number then rubbed up

the six and put a seven in its place

when the day shift came back to work

they saw the seven on the floor and got

to work immediately

by day's end the day shift lead proudly

rubbed out the seven and put a giant 10

in its place

after a few months that Mill was the

most productive Bethlehem steel mill

numbers Clarity commitment and

competition which increases traction and

produces results

as a business leader you must ensure

that everyone has a number they look at

each day and strive to improve

if you're in retail sales your sales

people's number might be sales per hour

if you're onboarding a customer service

agent their number might be average

customer rating after customer service

call

the number you select should clarify

what they need to focus on to complete

their 90-day goal

if a 90-day goal was like a cycling trip

from Boston to San Francisco then the

individual number would be the miles you

need to put in each day to get to San

Francisco one time

and the third component of a solid

execution system is a regular meeting

pulse

meetings get a bad rap but a well-run

meeting held every week holds people

accountable and maintains traction

the ultimate traction meeting has three

items on the agenda rocks issues and

action plans

in the Rocks portion of the meeting get

everyone in the room to publicly

acknowledge if their quarterly rock is

on or off track

when people know that there's a meeting

coming up where everyone in the room

wants to know how they're doing on the

Rock they will start putting the rocks

in their jars first

in the issues portion of the meeting

everyone in the room must describe two

issues they're struggling with for

example an alarming number on a

scorecard an employee issue a client

conflict or a systems problem

when people open up and share the issues

they're struggling with they show

vulnerability and create a culture of

trust

in the action plans portion of the

meeting the group must advise a plan to

resolve the top three issues mentioned

in the meeting before the meeting is

over

your job as the leader is to identify

the issues people most fear and get

people to suggest courses of action

while avoiding tangents and blaming

others

if you see the meeting about to go off

the rails ask is this helping us resolve

the big issues

when you hold a weekly meeting with

these three agenda items people are held

accountable trust their team more and

are determined to solve the big issues

before they slow your company's growth

in the end create a growing business by

solidifying the five essential

components Vision data process people

and issues by asking where do I want to

go what data do I need to track each

week how will I achieve my vision as

efficiently as possible

who is doing the work and do they get it

want it and have the capacity to do it

well and why might I fail

then install a system of execution and

gain traction by getting everyone to

focus on 90 day rocks improve their

individual numbers and hold regular

accountability meetings that people

leave with plans to attack the top

issues

that was the core message that I get

from traction but Gina Wickman

this book has a great business system

that every business can leverage I

highly recommend this book

if you would like a one-page PDF summary

of insights that I get there from this

book just click the link below and I'd

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have yourself a productive week