V/TO Explained
The V/TO (Vision/Traction Organizer) is a two-page document that captures your company's vision and plan on a single spread. It answers the eight essential questions that every leadership team must align on.
The V/TO is arguably the most important document in EOS. When completed well, it eliminates the ambiguity that causes miscommunication, misalignment, and wasted effort.
Vision vs. Traction
The V/TO is divided into two halves:
| Side | Focus | Time Horizon |
|---|---|---|
| Vision | Where are we going? | 10 years, 3 years, core identity |
| Traction | How will we get there? | 1 year, 90 days, current issues |
Vision without Traction is daydreaming. Traction without Vision is running in circles. The V/TO ensures both sides are defined and connected.
The Eight Questions
Vision Side
1. Core Values
What are the guiding principles that define your culture?
Core values are the 3 to 7 characteristics that define who you are as an organization. They are not aspirational -- they describe who you already are at your best.
Good core values:
- Are timeless and non-negotiable
- Can be used to hire and fire
- Are genuinely lived by the leadership team
- Are specific enough to distinguish you from other companies
Examples: "Own the outcome," "Default to transparency," "Progress over perfection."
TIP
If your core values could apply to any company, they are not specific enough. "Integrity" and "Excellence" are common but rarely distinctive. What does integrity look like specifically in your organization?
2. Core Focus
Why does your company exist, and what is your niche?
Core Focus has two parts:
- Purpose / Cause / Passion -- The deeper reason your company exists beyond making money. This is your "why."
- Niche -- What you do better than anyone else. This is your "what."
Together, they form a filter for decisions: "Does this opportunity fit our Core Focus?" If not, say no.
3. 10-Year Target
What is your one big goal for the next decade?
This is your BHAG (Big Hairy Audacious Goal). It should be:
- Specific and measurable
- Inspiring and motivating
- A stretch, but possible
Examples: "$100M in revenue," "1 million users served," "The leading platform in our industry."
4. Marketing Strategy
How do you attract and win customers?
Four components:
- Target Market -- Exactly who your ideal customer is. Demographics, psychographics, behaviors. The more specific, the better.
- Three Uniques -- What three things together make you different from every competitor. Each unique alone may not be distinctive, but the combination is.
- Proven Process -- Your proprietary methodology, named and defined. Every great company has a unique way of delivering value.
- Guarantee -- What you promise customers that removes risk from their decision.
Traction Side
5. 3-Year Picture
What does the company look like in three years?
Paint a vivid picture with specific metrics:
- Revenue and profit targets
- Number of employees
- Number of customers or locations
- Key milestones achieved
- What will be true that is not true today
6. 1-Year Plan
What must be true at the end of this year?
The 1-Year Plan includes:
- Revenue target
- Profit target
- 3-7 specific goals for the year
These goals should be stepping stones toward the 3-Year Picture.
7. Quarterly Rocks
What are the most important priorities for this quarter?
Rocks are the 3-7 most important things the leadership team must accomplish in the next 90 days. They bridge the gap between the 1-Year Plan and daily execution.
8. Issues List
What obstacles, opportunities, and ideas need to be addressed?
The V/TO Issues List captures long-term strategic issues -- things that are important but not urgent enough for the weekly Issues list. They are discussed during quarterly and annual planning sessions.
Building Your V/TO
The V/TO is typically built over two sessions:
Vision Building Day (Annual)
The leadership team works through questions 1-6, establishing or refreshing the long-term vision. This is often facilitated by an EOS Implementer.
Quarterly Planning Session
Every quarter, the team:
- Reviews the 1-Year Plan for progress.
- Sets new quarterly Rocks (question 7).
- Reviews and updates the Issues List (question 8).
- Occasionally adjusts the 3-Year Picture or 1-Year Plan.
Annual Planning
Once a year, the team:
- Reviews and refreshes the entire V/TO.
- Updates the 3-Year Picture.
- Sets the new 1-Year Plan.
- Sets Q1 Rocks.
INFO
Core Values, Core Focus, and the 10-Year Target rarely change. They represent enduring truths about your organization. The 3-Year Picture and 1-Year Plan are updated annually. Rocks and Issues change quarterly.
Sharing the V/TO
One of the most powerful aspects of the V/TO is sharing it with the entire organization. When every employee knows the core values, understands the Core Focus, and can articulate the 10-Year Target, alignment happens naturally.
EOS recommends conducting quarterly State of the Company addresses where the leadership team shares the V/TO with all employees.
How EOS Hub Helps
EOS Hub's V/TO feature provides a structured, digital V/TO with:
- Dedicated editors for each of the 8 sections
- Core values that feed into the People Analyzer
- Quarterly Rocks linked to the Rocks feature
- A strategic Issues List separate from the weekly Issues list
- Accessible to the entire team (editable by OWNER and ADMIN roles)
Related Pages
- V/TO Feature -- Using the V/TO in EOS Hub
- Rocks -- Quarterly priorities (V/TO question 7)
- Six Key Components -- V/TO is the tool for the Vision component
- People Analyzer -- Uses Core Values from the V/TO