Ownership Mindset: The business model explained
Ownership Mindset is a business model for businesses who wish to engage employees and create a ‘culture of accountability, purpose and profit’.
The model we use combines several management theories – open book management, leading indicators, scoreboards and KPI’s and works extremely well with an Employee Share Ownership Plan (ESOP). It empowers employees to think and act like business owners whilst providing them with tools and processes to improve efficiency, better manage projects (improvement plans) and contribute in a more rewarding fashion.
The model is made up of four key components:
- People – having the right people but also asking them to be involved and empowering them to act
- Knowledge – not technical knowledge to do their jobs but business and financial knowledge to make better business decisions
- Systems – measuring the KPI’s that matter, leading not lagging, and regularly reviewing results to take corrective action.
- And Incentives – rewarding key improvements that are aligned with business goals (often thought not always using an ESOP to reward employees with equity).
Clients that have used this model report better staff involvement (more ideas and suggestions) as well as a better alignment between ownership and employees (often a “clash” of views) and importantly most report improved productivity (often employee driven) as well increased profitability (even after incentives are paid – these are designed to be self-funded).
“The best executive is the one who has sense enough to pick good men to do what he wants done, and the self-restraint to keep from meddling with them while they do it.” – Theodore Roosevelt
Contact us here to discuss how Succession Plus can assist with implementing the Ownership Mindset business model in your business.