The Next Level Leader w/ Forrest Derr

Guest Background

Forrest Derr spent about 18 years in the office furniture/supply industry, eventually becoming VP of Operations over logistics, warehousing, distribution, and technology. He then moved into telecom (VoIP and internet), where his company adopted EOS after reading Traction and worked with an implementer for four years. After a chance conversation with another fractional integrator, Forrest saw an opportunity to help multiple companies at once rather than working inside a single one, and now works as a fractional COO/integrator — primarily with companies already running on EOS. He also founded an EOS networking group in Fairhope, Alabama that has since grown to roughly 70 chapters nationwide.

What is EOS?

EOS is described as an operating system for running a business — not software, but a set of fundamental systems and structures covering vision alignment, clearly defined roles and responsibilities, and disciplined meeting rhythms (notably the weekly 90-minute "Level 10," or L10, meeting). Forrest estimates over 400,000 businesses currently run on EOS, some self-implemented and others guided by a certified implementer.

Building the Right Team: The Accountability Chart

A recurring theme was building an accountability chart around the needs of the business — not around the people currently in the building. Forrest advises leaders to imagine designing the org chart from scratch based on where the company needs to be in 12 months, then determine who fits which seat, rather than creating seats to accommodate long-tenured employees who may not fit ("Susie's been here 20 years" is not a reason to keep a seat that no longer serves the business).

Each seat should carry just 5–7 core responsibilities — the 20% of activities that drive 80% of results — paired with scorecard metrics so people know whether they're winning or losing without needing a manager to tell them.

Accountability and Resistance to Change

Introducing scorecards and real accountability typically surfaces resistance. Forrest calls people who self-select out "volunteers" — high performers embrace metrics, while low performers who prefer to stay unseen tend to leave. He argues this is healthy: losing someone unwilling to be held accountable usually brings relief to the rest of the team and clears the way to bring in a stronger replacement. He's observed a compounding effect where upgraded ("A-player") hires attract other strong talent from their networks.

The Visionary/Integrator Relationship

Forrest explained the two core EOS leadership roles:

• Visionary — typically the founder; idea-driven, emotional, often pursuing multiple directions at once.

• Integrator — the second-in-command who leads the leadership team and channels the visionary's energy toward focused execution.

Common Blind Spots

The blind spot Forrest raises most often with founders and leadership teams: What is the exit strategy? He argues every major business decision should be made in service of a defined future outcome — whether that's an ESOP conversion, a sale to private equity, or another path — and that many leaders are unknowingly building toward a valuation or timeline that their current business model can't support. Jon added a related distinction he uses with founders and solopreneurs: whether they're building a "lifestyle business" (which can't be sold apart from themselves) or a sellable asset — neither is wrong, but the distinction should be a deliberate choice that guides decisions.

Forrest intentionally works himself out of a job: 6–9 month (up to 12-month) contracts aimed at helping a company determine whether an internal "closet integrator" already exists or whether they need to hire one externally, then setting up the structure for a permanent hire. He typically works with three client businesses per week, one day each.

derrconsulting.com | LinkedIn: Forrest Derr