The Long-Reaching Effects of a Solid 10-Year Target
Under the Entrepreneurial Operating System (EOS), your 10-year target is a critical piece of your Vision/Traction Organizer. It answers the question:
"Where do we want our organization to be a decade from now?"
Think in terms of a larger-than-life goal that everyone is working toward—a signpost that gives everyone in the organization a long-range direction.
Once your 10-year target is clear, you and your leadership team will start doing things differently.
That’s strikingly evident in a recent comment from one of our clients, Mike Dillon, the President of Lexington Manufacturing. Mike was part of a panel of executives I interviewed at a recent event sponsored by the Lakes Area Manufacturing Alliance.
I asked Mike to share what a 10-year target has done for his organization, and I think you’ll see the long-ranging effects of this powerful strategy.
Moving Out of the Comfort Zone
In Mike’s words:
"Our previous plan was really focused on a five-year plan. It also was very strong on values, vision and mission.
"But the 10-year target was new to us, and it really took us out of our comfort zone.
"We’re a company that had been used to growing. We’re always hungry for growth. But 10 years—you really have to put your mind out of this comfort zone and think about what you’re going to look like. What’s it going to look like for our organization to be that size, which is 2.5x larger than we are today?
"It’s completely changed our accountability chart. It’s completely changed our whole look on our facilities. It’s completely changed the outlook on our capacity, our marketing strategy and the size of customers we’re going after.
"All that stuff has changed completely because rather than just trucking along and making year-over-year incremental growth, like we’ve been really good at doing in the last half dozen years, we have to think completely differently about that."
Finding the Right Acquisition Partner
"We were acquired recently. Since we had our values and our vision and mission and this 10-year target so well documented and understood, going through the process really narrowed it down pretty easily for us who the right buyer was.
"Some of the potential buyers that came through, they didn’t even have a plan beyond five years. They were looking at a turn-and-flip in five years. We realized that wasn’t for us because we wouldn’t be able to get to our 10-year target. So, it helped us make that decision and sell to the right people. I was pretty, pretty happy with that."
What Can a 10-Year Target Do for Your Organization?
It can bring greater clarity to your day-to-day decisions. It can give your leadership team greater direction. And that’s just the start of the benefits you’ll see once you set a 10-year target.
To discover more about how a 10-year target can bring significant momentum to your organization, check out Episode #2 of the Growing Leaders, Growing Companies podcast: Four Timeframes to Help You Accomplish More with Less Effort.