Why EOS® Annuals Reveal the Real Leadership Constraint
In EOS Two-Day Annuals, there’s a moment most teams underestimate.
Leadership v Management Moment.
It’s the point where #4s are challenged to rise to the level of a #3 — to move from being a Subject Matter Expert (SME) to someone who can Lead, Manage, and create Accountability (LMA).
At EOS®, inside of LMA® we talk about Leadership is about Thinking and Management is about Doing. I like to remind my teams that they are a Sr. Leadership Team, a Sr. Thinking Team.
This isn’t cosmetic.
It’s structural.
EOS often Grows Faster Than Leaderships’ Thinking
As companies mature on EOS, something predictable happens:
The need for clearer thinking outpaces the need for doing and managing.
Early on, EOS rewards strong doers.
Later, EOS requires leaders who can think forward, manage complexity, and align people.
That’s where many leadership teams quietly stall.
The 1-2-3-4-5 Leadership Model
After selling my companies, I coached dozens of CEOs each month across multiple peer boards. Every CEO would say the same thing:
“If I just had a great #2, everything would work.” (Think Star Trek – Picard had a #2 in Riker)
When I asked them to define a #2, #3 or #4, most couldn’t.
So over time, we simplified it into this language model:
#5 – Tasker
Executes assigned work. Needs direction.
#4 – SME / SMA Craftsperson
A self-managing expert. Excellent at doing the work. Often works independently. Subject Matter Expert, Subject Matter Authority
#3 – Player-Coach
A #4 who can still do the work of a #4 while managing other #4s. This is where leadership can begin to show up.
#2 – Senior Leader
Manages #3s, #4s, and #5s. Thinks across functions. Lives close to the #1. A great Integrator is a classic example.
#1 – Visionary
Sets direction. Thinks farthest into the future.
The Most Common Leadership Mistake
EOS doesn’t fail because people lack talent.
It fails because we promote great #4s into #3 Seats without testing leadership capacity.
Best salesperson becomes the Sales Manager who hates managing
Best engineer becomes a miserable People Leader.
Not everyone is meant to leave #4 roles — we need these roles, they are where money is made, and that’s okay.
But if a company has grown, the leadership team cannot remain staffed with #4 tactical doers.
What Annuals Are Really Asking
By the time a company reaches its EOS Annual, the question isn’t:
“Are these good people?”
It’s:
“Do we have the right leadership, thinker for the size and complexity of this business?”
Strong EOS leadership teams are built primarily of #1s, #2s, and #3s.
#4s and #5s are essential — just not on the senior leadership team.
The Walt Brown Take
When EOS stalls, most teams reach for more tools.
They don’t need them.
They need a leadership alignment tune-up — clarifying who is here to do, who is here to manage, and who is here to think.
That’s not an HR problem.
That’s not a motivation problem.
That’s an EOS Reboot problem