Podcast Summary: Service Business Mastery for Skilled Trades — "Why Trade Business Founders Fail to Scale and How EOS Fixes Leadership Gaps" with Eric McGrath
Date: June 25, 2025
Hosts: Tersh Blissett & Josh Crouch
Guest: Eric McGrath, Driven Leadership
Brief Overview
This episode dives deep into the challenges skilled trades business founders face when trying to scale their operations. Eric McGrath, leadership coach and EOS (Entrepreneurial Operating System) implementer, joins host Josh Crouch to discuss why trade business owners hit “the ceiling,” the leadership gaps that limit growth, and how EOS—along with intentional leadership development—can create lasting, scalable success. The conversation blends practical advice with personal anecdotes, emphasizing both structural operating systems and the softer side of leadership.
Key Discussion Points and Insights
1. Why Trade Business Founders Struggle to Scale
- Common Growth Ceiling: Many skilled trades businesses grow to a certain point (like $10M) and then stall, unable to make the leap to higher revenue.
- Root Causes: Often stems from lack of structure, unclear vision, and especially people/leadership development.
- Founders’ Background: Most founders excel in their trade (plumbing, HVAC, sales, etc.) but have little experience leading teams or implementing systems.
Eric McGrath (00:00):
“Take a $10 million business... They go a little bit and then, yeah, we make some progress but then we're back and just keep butting our head up against it.”
2. What is EOS? Why Does It Work?
- EOS Basics: EOS (Entrepreneurial Operating System) focuses on vision, traction, and health, giving businesses structure without bogging them down.
- Visionary vs. Integrator: EOS defines the “visionary” (big-picture, ideas person) vs. the “integrator” (operations, implementation). The right balance between these two roles is critical for growth.
- Power of Structure: The discipline of regular meetings, scorecards, and accountability helps align teams and turn ideas into execution.
Eric McGrath (07:09):
“The power of EOS is, yes, they create that kind of structure to meetings, but it's also that relationship and defining clearly... When these two people work really well together in a company, it's unbelievable what happens.”
3. The Anatomy of Effective EOS Meetings
- Meeting Cadence: Weekly (90-minute) Level 10 meetings, with a defined agenda.
- Key Segments:
- Personal/Professional Wins: Begin with quick team bonding and celebrations.
- Scorecard Review: Go over business metrics quickly, without deep-diving into problems yet.
- Rocks Review: Check progress on 90-day goals (the “big rocks”).
- Customer Headlines: Quick updates on key wins or issues.
- IDS (Identify, Discuss, Solve): The bulk of the meeting is collaborative problem-solving, not just talking for talk’s sake.
- To-Do Trackers: Assign and follow up on action items.
- Digital Tools: Platforms like 90.io, Bloom Growth, or EOS One help facilitate meeting flow and accountability.
Eric McGrath (12:48):
“Meetings typically start with a short little segment on some positives... then it quickly moves into... reviewing a scorecard on the metrics... then the rocks... and if something’s off, we bring it into IDS... the goal is to solve it forever.”
4. The Critical Role of Leadership Development
- Personal Growth: Sustainable scaling is impossible without business owners growing as leaders.
- Collaborative Leadership: The shift from autocratic (“my way or the highway”) to collaborative styles is essential.
- Psychological Safety: Creating environments where team members feel safe to voice opinions leads to high-performance cultures.
Memorable Story – The Transforming Leader (20:30–25:00):
Eric shares the story of an initially autocratic leader who, after intensive coaching, gradually transformed her leadership approach, resulting in 2000%+ business growth and accolades like the Inc. 500 list.
“She started listening to her team... She started growing almost immediately... Culture is so powerful when you’re recruiting, especially in a scarce market like the trades.” (Eric McGrath, 25:00)
5. Hiring and Promoting Leaders: Avoiding Common Pitfalls
- Danger of Promoting Top Performers: The best tech or salesperson doesn’t automatically make a good manager.
- Emotional Intelligence (EI): EI is the essential trait for managers; it determines their ability to inspire, resolve conflict, and drive teams.
- Gallup Study: Only 1 in 10 people are natural managers; with training, 40% can succeed in management, but 60% should not be promoted.
Eric McGrath (38:23):
“We’re looking for this ability to connect... If you’re not one who's willing to authentically connect with people... you're not going to be successful as a manager.”
6. The Value of One-on-One Meetings
- Crucial for Connection: Regular, scheduled one-on-ones are rare in the trades but vital for retaining talent, surfacing issues, and enhancing performance.
- Ideal Frequency: At least monthly, ideally biweekly.
- Structure:
- Connection: Personal and professional check-in.
- Needs: What support does the team member need?
- Feedback/Cleanup: Discuss tasks, concerns, or new ideas.
- Impact: Aids in retention, exposes hidden issues, and builds trust—directly linked to easier change management and stronger team performance.
- Memorable (if startling) Anecdote: Sometimes one-on-ones reveal unexpected (and critical) on-the-ground problems that leadership might otherwise miss.
Eric McGrath (43:39):
“The methodology of one-on-ones is so vital... the connection is more valuable than the 30 minutes they’re on the job.”
7. Building Healthy, High-Performing Cultures
- Mythbusting ‘Fun Culture’: It’s not about ping-pong tables or free breakfast; it’s about psychological safety and trust.
- Google’s Project Aristotle: Psychological safety is the single most important factor in high-performing teams.
Eric McGrath (31:23):
“Really great culture actually comes down to a term called psychological safety... their retention goes through the roof, their engagement goes through the roof.”
Notable Quotes & Memorable Moments
| Timestamp | Speaker | Quote | |-----------|----------------|-------------------------------------------------------------------| | 00:00 | Eric McGrath | “They keep butting their head up against it... usually it comes down to a wide range of things within traction that starts to solve that. That’s what it focuses on.” | | 07:09 | Eric McGrath | “When these two people work really well together in a company, it’s unbelievable what happens, because you get these incredible ideas... but also implementation.” | | 12:48 | Eric McGrath | “It is... reviewing the metrics, gathering the information... If there’s an issue... we bring that into what they call IDS... The goal is to solve it forever.” | | 20:30 | Eric McGrath | “Usually the tough spot is when that leader doesn’t recognize... If somebody says, ‘I want results to change, but I’m not willing to change’ — that’s the toughest.” | | 25:00 | Eric McGrath | “She started growing almost immediately... she attracts people because they want to work in that environment versus repelling. Culture is so powerful when you’re recruiting, especially in a scarce market like the trades.” | | 31:23 | Eric McGrath | “Really great culture actually comes down to a term called psychological safety... Those companies outperform everybody.” | | 38:23 | Eric McGrath | “A top manager... my number one trait is actually emotional intelligence... If you’re not one who’s willing to authentically connect with people, you’re not going to succeed.” | | 43:39 | Eric McGrath | “If you’re not doing [one-on-ones], do them. Some people do it once a quarter... It takes at least once a month... but ideally every two weeks.” |
Timestamps for Important Segments
- 00:00–03:53 – Eric’s background and why leadership development is key
- 07:09–09:38 – Why business owners stall at scale; visionary vs. integrator in EOS
- 12:48–16:41 – Breakdown of effective EOS meetings and tool recommendations
- 20:30–25:00 – Transformational leadership: Case study of an autocratic owner’s growth
- 31:14–33:58 – Culture: Psychological safety, not ping-pong tables
- 38:23–42:39 – Promoting top performers, emotional intelligence, Gallup stats
- 43:39–47:47 – One-on-ones: Frequency, structure, and surprising discoveries
- 49:35–End – How to contact Eric and wrap-up
Final Thoughts & Useful Contacts
-
Eric McGrath Contact:
Website: drivenleadership.com
Email: eric@drivenleadership.com -
Hosts’ Offer:
Josh Crouch welcomes questions about EOS implementation.
For Skilled Trades Business Owners:
Implementing systems like EOS and focusing on leadership development are the keys to breaking through growth plateaus. Start small by structuring meetings, investing in leadership skills, and building psychological safety through regular one-on-ones. Your people—and your bottom line—will thank you.