What’s the Difference between Scaling Up and the Five Facets?

Several models exist to support small businesses in their quest to simplify and scale. The below comparative looks at the three leading small business operating systems you can apply to your business examining the pros and cons of each system. 

Comparing our 2 models: 

1. Scaling Up™ framework (developed by Verne Harnish), 
2. The Five Facets of Business™ (developed by Dave Newell)

Scaling Up (Verne Harnish)

Pros of Scaling Up

Focus on Growth: As the name suggests, Scaling Up is designed to help businesses scale, making it ideal for small businesses with ambitious growth targets. 

Comprehensive Tools and Metrics: Scaling Up provides a wide array of tools and metrics for businesses to measure and manage their growth effectively. 

Adaptability: Unlike EOS, Scaling Up offers a more flexible framework that can be tailored to the unique needs of a business.

Cons of Scaling Up

Complexity: With its breadth of tools and strategic focuses, Scaling Up can be overwhelming for smaller businesses or those without a dedicated team to manage the implementation process. It’s akin to the challenge of overloading a team with too many priorities, diluting focus and effectiveness.

Resource Intensive: Properly implementing Scaling Up can require significant time and financial investment, potentially putting it out of reach for businesses with limited resources.

Focus on Growth: Yes, this was listed as a pro as well, but it’s also a con. The focus on growth can limit the effectiveness for an organization that is underperforming or does not have the desire or capacity to scale up (focusing rather on a life-style business). 

The Five Facets of Business (Dave Newell)

Pros of the Five Facets of Business

Leadership Behavior Focus: The framework includes leadership behaviors and leadership development that align with the system, including one-on-one  and team coaching with materials that support leadership development along with systems change. 

Systems Approach: 5F focuses on alignment, ensuring that the five major elements of your organization (culture, strategy, operations, story, and finance) are working together to elevate the effectiveness of the entire organization. This includes focusing on both the design of each of the five facets and tools to execute the design. The 5F effectively blends design and execution to increase effectiveness and business growth. 

Versatility: 5F offers a comprehensive assessment at the outset of any engagement, establishing a clear roadmap for focused implementation on key indicators for the business. The application of the framework is tailored to each individual business to address each businesses specific obstacles and opportunities. 

Cons of the Five Facets of Business

Complexity: Like Scaling Up, the 5F framework is flexible and adaptable but can be difficult to self-implement. Several tools and approaches from the framework can be done by leaders without support, but the framework is most effective when applied comprehensively. 

Change is Required: 5F often requires leaders to adapt their style to develop a systems approach to change. This requires leaders and their teams to be open to approaching their business in new ways, and some leaders resist this change. 

Time to Implement: 5F is not a quick-fix approach, and can take time to implement into an organization to achieve maximum effectiveness. While certain elements can be added quickly, a full implementation can take months to achieve. 

In summary, the choice between EOS, Scaling Up, or The Five Facets of Business™ should be guided by a company’s specific needs, culture, and growth stage. We suggest that leaders first clearly understand their organization’s vision and capacity for change, then choose the model that best aligns with these factors. Whether it’s the clarity and structure of EOS, the growth-focused flexibility of Scaling Up, or the comprehensive systems and behavior approach of The Five Facets of Business™, the key is to commit to the chosen system, ensuring it’s fully integrated into every aspect of the organization’s operations.