Glossary
3-Year Picture™
The 3-Year Picture is a short written description of the company three years out, carrying a date, revenue and profit figures and a few measurables. Under the numbers goes a list of things that will be true, written in the present tense so the team can picture the place instead of arguing about a forecast.
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How EOS® uses the 3-Year Picture
It closes the vision page of the V/TO®, after the ten-year target and the marketing strategy, and the one-year plan on the traction page picks up where it stops. It gets rebuilt at the annual session. The rule is that everybody in the room has to see the same thing, so the bullets get specific. How many locations, which departments exist, and who is doing the job the founder does now.
Three years is the horizon where structural decisions live. Whether you need a second facility, a real finance function or a sales manager is a three-year question, and it gets answered by accident if nobody writes it down. The present-tense wording matters more than it sounds, because it turns a forecast into something a team can disagree with.
Worked example: An engineering consultancy of thirty-five people wrote a picture with two offices, a dedicated bids team and no partner working billable hours. The bids line was the surprise. It meant hiring a proposal writer within twelve months, which had been on somebody's wish list for three years and had never once survived a budget meeting.
Sources: Traction, Gino Wickman, chapter on Vision; Get a Grip, Gino Wickman and Mike Paton
V/TO
The V/TO, short for Vision/Traction Organizer, is a two-page form answering eight questions about where a company is going and what it will do next.
021-Year Plan
The 1-Year Plan is the coming twelve months written as a date, revenue and profit numbers, a few measurables and three to seven goals to finish.
0310-Year Target™
The 10-Year Target is the single long-range goal a company is aiming at, far enough out to shape structural decisions and close enough to feel real.
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