The E-Myth Glossary of Terms

Accountability
The unwavering commitment to deliver agreed-upon results.

Action Plan
The central document of a system that contains three major components: the statement of results, benchmarks, and standards. Minor sub-components include: forms/templates, scripts, samples, routine controlling calendars, system diagrams, required resources, and quantification. The statement of results is the desired outcome of performing the action plan (see Benchmarks and Standards, following).

Benchmarks
The steps that must be accomplished in order to achieve a pre-determined result, including accountable position and due-date.

Business Development
The ongoing process of innovation, quantification, and orchestration of systems that results in a business that empowers achievement of the owner's Strategic Objective, personal objectives, and Primary Aim, and in doing so, brings the owner more life.

Client Acquisition
The lead generation and lead conversion processes combined to obtain long-term quality clients through orchestrated systems.

Client Fulfillment
The essential business process of satisfying the advertised, implied, or contracted promise made to the customer, including all production, delivery, and customer service activities.

Company Story
A short story that can be told orally that represents the "essence" of the culture of your company; a customer's experience, an employee's act that demonstrates "the way we do it here."

Controlling Calendar
A tool for planning and tracking work and results. It facilitates planning, manages the interface between people, identifies strengths and weaknesses in work processes, and communicates progress.

Delegating
To give accountability to a reporting position and to secure their agreement, or accept their decline.

Delegation Agreement
Any written form used to delegate work and make agreements to perform that work through others. Employees have the right to modify or refuse an accountability, as long as they provide sound logic and/or alternatives, and secure the agreement of their manager.

E-Myth Point of View
A perspective on one's business, life, and the interrelationship between the two, that says the business should be a vehicle to bring its owner more life.

Exception Report
A form used to document and communicate that an accountability has not, or will not be met, the reasons why it will not be met, and the alternative step(s) to take. It is communicated on or before the due date.

Facilitator Services
A service department that allows for the development, production, storage, and distribution of the company's operations manual.

Innovation
The act of conceiving and implementing a new way of achieving a result and/or performing work. Innovation doesn't have to be expensive or complicated. It is the mechanism by which a business positions and differentiates itself in the mind of the consumer.

Key Frustration
An undesirable pattern of events that can be eliminated by the installation of a system.

Key Strategic Indicators
Measurements, both tangible and intangible, of a company's condition compared with the key elements of the Strategic Objective.

Lead Conversion
An essential business process to acquire long-term, quality clients through the implementation of lead conversion systems, so that prospects perceive the commodity and the company as emotionally satisfying (sales).

Lead Generation
An essential business process to consistently acquire long-term, quality clients through the design, production, and placement of media messages through optimal media channels.

Leadership
The vision, action, and spirit of the owner and his or her business, communicated to, among others, employees, customers, vendors, and investors.

Line Relationship
A relationship between two people in which a manager has the authority to communicate substantive information and to give directives to an employee. A manager is "line to" his or her reporting employees.

Manage
Using systems to get results through other people, in pursuit of the Strategic Objective.

Management
An essential business discipline that includes all systems developed and used to get results through others.

Management by Agreement
A management system in which the manager and the employee have an agreement about what results the employee is accountable for, what work the employee will do to achieve the results, and how the work will be done. The employee agrees to achieve the result by doing the work according to explicit standards, while the manager agrees to effectively support the employee in producing excellent results.

Management by Exception
A management system which assumes work is done according to orchestrated systems and standards. Any exception to the sanctioned orchestration requires notification of the manager by the accountable employee in the form of an exception report, which provides the nature of the exception, the logic, and, if appropriate, an alternate strategy, due date, or request for assistance. The manager can assume the work is being performed according to the standards, unless otherwise notified. Failure to notify (i.e. silence) is not acceptable. Forms such as the exception report facilitate management by exception (see Exception Report).

Marketing
One of the three essential business disciplines that studies the demographics and psychographics of target consumers, as well as the development of positioning strategy and messages. Marketing strategy affects everything that touches customers, prospects, employees, investors, vendors, and essential business processes.

Module
A grouping of E-Myth Mastery process booklets used to achieve results in a respective center of management attention for various stages of development in a given business.

Money
One of the three essential business disciplines, Money represents the financial side of the business - obtaining money, controlling its movement into and within the business, and creating the company's financial value.

Orchestration
The routinizing and documenting of work so that the desired results can be consistently achieved. It is the elimination of discretion, or choice, from the operating level of a business, so that clients, customers, employees, suppliers, and vendors have a predictable, satisfying experience.

Personal Objectives
The tangible goals, both short-term and long-term, that help you live your Primary Aim (see Primary Aim).

Position Contract
A reciprocal document containing the result, work, and standards that comprise a specific position within a company. By signing the position contract, an employee is agreeing to be accountable for the result, work, and standards therein. The manager also signs, thereby agreeing to be accountable to support the reporting employee achieve their results.

Primary Aim
The vision of what life's about - its true purpose. The ability to clearly hold and articulate this vision gives energy, purpose, direction, meaning, and a feeling of being truly alive. It guides daily actions, allowing creation of a life that is an expression of what is most important.

Process/Process Booklet
Results-oriented, conceptual technologies used to perform the Strategic Work of innovation, quantification, and orchestration throughout the E-Myth Mastery Program.

Quantification
The validation of innovated and orchestrated systems by testing them and measuring their results.

Regulating
Using a set of principles to oversee reporting positions' delivery of agreed-upon results, work, and standards; monitoring progress without abdicating managerial support or accountability.

Reporting Loop
A completed transaction between a manager and his or her reporting employee. The manager receives a result from the employee (half the loop) and approves or rejects it (the other half of the loop); often expressed as benchmarks in an action plan (see Benchmarks, Action Plan).

Report to
Each employee "Reports to" his/her manager, indicating the special, one-on-one, mutually supportive relationship that exists between manager and employee.

Result
A clearly defined, desired outcome, that gives direction and purpose to an individual or a group effort, enabling them to measure success.

Routinized Work
Work that has been orchestrated and is documented in a (routinized) system Action Plan (see Orchestration).

Service Department
A department that provides staff support to other divisions and/or departments. Service departments include, but are not limited to: administration, information technology, human resources, facilitator services, accounting, finance, inventory, and training - virtually any department that is not directly accountable for lead generation, lead conversion, or client fulfillment.

Seven Centers of Management Attention
The essential business disciplines and processes to which individuals and organizations must give their attention, in order to develop a successful business. They are: Leadership, Marketing, Money, Management, Client Fulfillment, Lead Conversion, and Lead Generation.

Specialized Work
Any work that is performed only once in the same manner within a company's history. This can include innovations that have not been orchestrated into routinized work.

Staff Relationship
A relationship between two people in which neither has the authority to communicate substantive information, or to direct the activities of the other. People in staff relationship to one another may render advice, provide service, make requests, or exchange information as part of a service department system (see Service Department).

Standards
Statements that describe the behavior for which people are accountable to produce predictable, consistent results. They define how work is to be done in order to establish clarity and agreement among employees. In one form, they are the conditions under which the objective is to be achieved; in another, the manner in which the work is to be performed. They should always accompany the assignment of an objective.

Strategic Objective
The owner's vision of the business as it must be in order to achieve his/her Primary Aim. It is a statement of what the business will look like when it's done.

Strategic Work
The work managers do to get results through other people, and move the business toward its Strategic Objective. It consists of four groupings: Organizing, Planning, Developing, and Operating. It is the work that is inherent in all managerial positions, the accountability for which cannot be delegated - working on it, not in it.

Systemic Thinking
Maintaining a holistic mindset that gives the perspective of seeing each part of a business as influencing the entire system.

Tactical Work
All the tasks non-managers perform to achieve the results of their positions. For example, salespeople perform tactical work by making sales presentations ...receptionists by responding to telephone calls...and bookkeepers by recording financial transactions. Managers also perform tactical work when they are doing tasks toward achieving results directly, rather than related to getting results through others.

Target Market
A market segment that has high probability for purchasing your product or service, and which you have selected for focused marketing activities.

Press Contact

Justin Dye
E-Myth Worldwide
541.552.4636

jdye@e-myth.com


International
+1 541.552.4600
United States
800.221.0266