Book: Get Scalable

"Get Scalable" by Ryan Deiss

Purpose: To provide a concise overview of Ryan Deiss's core concepts for building a scalable business, based on the supplied excerpts from his book "Get Scalable." This document focuses on understanding the "operating system" of a business and upgrading it for scalable growth.

Core Themes & Ideas:

1. The Business as an Operating System (OS):

• Deiss argues that every business, whether consciously or not, functions as an operating system. This OS comprises "a set of algorithms and a common language that enables different components to communicate with one another in support of the desired outputs of a machine." Just as a computer needs an up-to-date OS, so too does a business to maximize output and prevent crashes.
• All businesses have:
• A set of algorithms (written or unwritten rules)
• A Common Language
• Desired Objectives (goals, vision, mission)

1. The "YouOS" (Version 1.0):

• In the early stages, most businesses operate on a "YouOS," where the founder is the operating system. "With a YouOS, you (the founder) are the operating system and the operating system is you. You make the rules, you drive the meetings, and you set the goals. You do it all!"
• This works initially, similar to Windows 1.0, but becomes unsustainable as the business grows.
• Signs of YouOS Overload: Burnout, frustration, feeling overwhelmed. "You’re tired, frustrated, burned out, and ready to quit." Deiss bluntly states that "all companies operating on a YouOS eventually stall out because their founders eventually burn out."
• The book's premise is that this burnout isn't the founder's fault, but a symptom of an outdated OS. "It’s not your fault...You simply need a new operating system… a new “playbook.”

1. The Need for an Upgrade to a Scalable Operating System (sOS):

• The key is transitioning from a "YouOS" to a "Scalable OS" that allows the business to run and scale without the founder being the bottleneck. The book aims to provide the "playbook" for this upgrade.
• It's about moving from startup to scale-up. "When you make the shift from startup to scale-up, the rules change because the game has changed, but it’s a game you can win if you have the right playbook."
• Deiss shares his personal experience of nearly bankrupting his first company, emphasizing the importance of this shift. "I have a confession to make: I nearly bankrupted my first company."
• The overarching goal is achieving "a thriving business, personal wealth, and even the freedom you craved when you started your company."

1. Debunking "Scale Myths":

• Deiss identifies and debunks common misconceptions that hold founders back:
• "I just need more sales…" Deiss argues that sales alone aren't the solution.
• "I just need to hire more people…" He stresses the importance of systems before teams. "Hiring is one of the most expensive, time-consuming, and riskiest tasks you will perform as a business leader, and that’s why it’s vital that you build systems first and teams second..."
• "I just need to raise some capital…" Cash is an "accelerant," not a fix. "Here’s the harsh reality: cash doesn’t actually fix anything, it’s merely an accelerant."

1. Key Components of a Scalable OS:

• Value Engine Mapping: Identifying and visualizing how the company creates value. This process will "form the foundation of the set of algorithms that will transition your company from a YouOS to a Scalable OS..."
• Uses specific symbols (pill, square/rectangle, diamond, parallelogram, line) to map processes. The diamond represents "a decision point or gateway."
• Identify three-to-five Power Stages in each Value Engine.
• Playbook Library: Documenting the "secret recipes" or standard operating procedures (SOPs) of the business. The Coca-Cola recipe vault analogy is used to emphasize the value of these playbooks.
• Addresses the problem of the "shoulder tap" (interruptions) by providing clear documentation and context, building employee self-trust and certainty. "I believe shoulder taps happen because good people simply don’t trust themselves to do the job that you have entrusted them to do...The issue is, they don’t trust themselves."
• Framework for building High-Output Teams:

1. Clear Purpose
2. Clear Context
3. Clear Accountability

• The High-Output Team Canvas involves assigning "Critical Accountability Bullets" (CABs) to team members based on Value Engine tasks. This creates clarity of context.
• Company Scorecard: A "user interface" for the OS, tracking key metrics to monitor performance and progress toward goals.
• Includes evergreen metrics, North Star metrics, and team-specific metrics.
• Setting Monthly Targets and tracking progress. Targets can be "Top-Down" (driven by company goals) or "Bottom-Up" (driven by team improvement).
• Using color-coding (red, yellow, green) to visualize performance against targets. "Assuming the team’s plan is realistic and achievable, I tell them 'Good work!' and move on with my day. To be clear, I don’t like to see yellow, but if you’re setting aggressive targets, you’re going to see a lot of yellow."
• Emphasis on asking the right questions to drive improvement, not necessarily knowing all the answers. "Having the right answers got you to today, but asking the right questions will get you to the future."
• Not the CEO's job to turn red to yellow or yellow to green.
• Meeting Rhythm: Establishing a structured and efficient meeting schedule to facilitate planning, communication, and decision-making. A diagnostic is included to assess the current state of meetings.
• Scalable Planning System: A four-part strategic planning cadence:
• Plan in three-year cycles (Three-Year Target)
• Execute in ninety-day sprints (Quarterly Sprint Plans - QSPs)
• Measure and report in weekly scorecard meetings
• Pivot monthly (if needed)
• QSPs are marked by a memorable "rally cry."
• Clarity Compass: A decision-making framework to ensure that decisions are aligned with the company's goals, values, and capabilities. "A decision-making framework is the missing piece that will finally allow you to shift from the dreaded YouOS (where you are the one making all the decisions) to a Scalable OS where you have a trusted team that’s fully capable of making high-level decisions as good (or even better) than you would." All companies scale at the rate of good decision-making.
• Four key components:
• Three-Year Target (North Pole): Revenue, profit, and total enterprise value goal. "Our three-year target is to scale our top line revenue to X while maintaining a profit margin of Y, thereby achieving a total company value of Z..."
• Company Purpose (South Pole): A selfless, outward-facing, customer-centric goal. Contribution + Impact = Purpose.
• Core Values (East Hemisphere): Generally accepted standards of behavior. Not Permission-to-Play Values.
• Strategic Anchors (West Hemisphere): Skills, resources, and assets that create a defensible competitive advantage. "Strategic Anchors are the collection of skills, resources, and assets your company possesses that combine to form a truly defensible competitive advantage."

1. Installation and Optimization:

• Installing the OS involves implementing the documented components (Value Engines, Playbooks, Scorecards, etc.) and communicating the Three-Year Target, Company Purpose, Core Values, and Strategic Anchors.
• The OS is never "finished" but requires continuous improvement and upgrades, similar to software updates. The analogy of iOS updates is used to illustrate this.
• Key installation tasks:
• Hold Clarity Day workshop
• Distribute Clarity Compass worksheet
• Complete Clarity Compass
• Define your company's Strategic Anchors
• Finalize your Clarity Compass and distribute it to everyone on your team
• Draft your company scorecard
• Define meeting rhythm

Key Quotes:

• "Whether you realize it or not, your company is already running on an operating system (an OS). Just like a computer, it’s critical that you always run the most up-to-date version of your company OS if you want to maximize output and prevent the systems (both you and your company) from crashing."
• "With a YouOS, you (the founder) are the operating system and the operating system is you. You make the rules, you drive the meetings, and you set the goals. You do it all!"
• "all companies operating on a YouOS eventually stall out because their founders eventually burn out."
• "Your business isn’t broken. You aren’t broken. You simply need a new operating system… a new 'playbook.'"
• "Hiring is one of the most expensive, time-consuming, and riskiest tasks you will perform as a business leader, and that’s why it’s vital that you build systems first and teams second..."
• "Here’s the harsh reality: cash doesn’t actually fix anything, it’s merely an accelerant."
• "I believe shoulder taps happen because good people simply don’t trust themselves to do the job that you have entrusted them to do...The issue is, they don’t trust themselves."
• "Strategic Anchors are the collection of skills, resources, and assets your company possesses that combine to form a truly defensible competitive advantage."
• "All companies scale at the rate of good decision-making."

Target Audience: Entrepreneurs, business owners, CEOs, and leadership teams looking to scale their businesses and reduce founder dependency.

Call to Action (from the book): Visit GetScalable.com/os for help building or upgrading the company's operating system.

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