One thing many startups lack is a business operating system. A high-growth startup that isn’t using an operating system to run the business either isn’t familiar with the concept, or they are familiar but are afraid it will be too cumbersome to implement and restrictive to operate.
An operating system might sound complicated to set up. But it’s not, and it can actually bring order, focus, and efficiency to the inevitable chaos that comes with running a startup.
When implemented well an operating system won’t slow you down, it will speed you up and improve your results.
An operating system is how a company runs the business at the highest level. How it plans, executes, communicates, and creates a culture of accountability and transparency. It’s a framework that sits across the entire business—think of it as an umbrella that is the layer atop everything else.
An operating system allows you to set the vision and then execute, communicate, and report on results efficiently. More than anything, it’s a discipline that helps define the cadence with which you will operate.
I’ve heard this called operating cadence, operating system, operating framework, and operating model. At the core, it’s all the same thing.
An operating system can help your staff translate vision & strategy into initiatives & tactics and monitor progress against that plan. When implemented well, it helps create a culture of accountability and “say-do”.
I love Wikipedia's definition because it succinctly describes an operating system.
“An operating system is “… the common structure, principles, and practices necessary to drive the organization. The objectives of such systems are to ensure daily work is focused on the organisation’s strategic objectives and is done in the most efficient way. The systems deal with the questions “why” (purpose of the work), “what” (specific objectives of the work), and “how” (the processes used to do the work).”
I really like this summary, too, from an internal email sent by Ben Huh to his internal team.
“A business Operating System is a simple idea:
- Using the company’s values (of Truth, Excellence, and Happiness)…
- create a set of consistent rhythm for communications, meetings, procedures and decision-making…
- which helps align everyone’s goals with the ultimate objectives of the company.
Put in other words: A business OS is how we consistently and clearly communicate, hire, make decisions, etc. that help us do more faster.“
Well, not to be repetitive, but you need an operating system to tame some of the inherent startup chaos without impeding execution. An operating system will help you set vision and strategy, communicate it, and track it.
An operating system helps ensure that your time, resources, and budgets are going towards achieving company goals (this sounds like a no-brainer, but lots of high-growth companies have inefficiency because of this—if you’ve spent a day in a high-growth company, you know this is a fundamental truth).
An operating system helps ensure everyone is working and communicating in the same way, rowing in the same direction and on the same page. It helps a rapidly growing team to know what to expect, when to expect it, and how they will be measured. It helps create alignment across the entire organization.
I would venture to say every company needs an operating system. Here are some signs that you definitely need one: