Five early signs your company's growth has stalled

Growth rarely stops with a bang. More often, a company that's running well simply stays the same size for a few years, and nobody can quite say why. Here are five early signs we look for.

1. Revenue tracks last year, not the plan

If your team compares this month to the same month last year and feels good about a small increase, check it against the 1-Year Plan. A business can beat last year every month and still fall further behind the plan it set.

2. The Scorecard is green and the year is behind

When weekly measurables are on track but annual revenue isn't, the Scorecard goals were set to keep things running, not to close a gap. That's a sign the plan and the weekly numbers have come apart.

3. Rocks all fix things

Look at the last four quarters of company Rocks. If nearly all of them repaired something, such as a process, a system or a hire, and none aimed at a driver of revenue, growth has had no owner.

4. Revenue per employee is flat or falling

If headcount has grown as fast as revenue, or faster, you're adding work without adding leverage. Margin usually tells the same story a few months later.

5. Nobody can name the numbers that matter most

Ask each member of the leadership team which two or three numbers most determine whether you hit the year. If you get different answers, or no answer, the team is working hard on different things.

What to do if you see them

None of these signs means something is wrong with your team or with EOS®. They mean the plan hasn't been connected to the data the team sees every month. The fix is usually simple: break the plan into monthly targets and a few drivers, give each driver an owner, and review actuals against it every month.

To check two of these signs in about two minutes, take the Growth Fit Check. To score your leadership team on all of them, download Built to Fix, Not to Grow.