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Ownership Mindset: The business model explained

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Ownership Mindset: The business model explained

By , March 3, 2021
Employee compensation and employee retention strategy  – Succession Plus

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:

  1. People – having the right people but also asking them to be involved and empowering them to act
  2. Knowledge – not technical knowledge to do their jobs but business and financial knowledge to make better business decisions
  3. Systems – measuring the KPI’s that matter, leading not lagging, and regularly reviewing results to take corrective action.
  4. And Incentives – rewarding key improvements that are aligned with business goals (often thought not always using an ESOP to reward employees with equity).
ownership mindset business model

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.

Craig West

Craig West

Executive Chairman | Succession Plus

Craig West is a strategic accountant with over 20 years of experience advising business owners. His background as a CPA in public practice has provided invaluable experience in the key issues of concern to business owners.

In March 2014, Craig was appointed Executive Chairman of the SME Association of Australia, Australia’s largest small business organisation representing over 300,000 business owners.

In October 2014, he was awarded the Exit Planner of the Year at the Exit Planning Institute Annual Conference in Texas, USA, due to his innovative development of an exit planning process to help business owners maximise business value and achieve a successful exit.

Craig’s proprietary structure - a Peak Performance Trust - has won the Australia-wide award for the Employee Share Ownership Plan of the year twice in four years.

In November 2018, Craig launched SME Experts in partnership with Mark Bouris’ Mentored on Podcast One and quickly grew the monthly podcast audience to over 26,500 downloads; in October 2019, he released a new podcast focused on medium-sized businesses - Mid-Market Matters.

In July 2021, Craig joined the NSW Committee for STEP (Society of Trust & Estate Practitioners) – focusing on advising families across generations.

Craig has also launched a SaaS platform, Capitaliz (which captures the 21-step process), to assist other advisers internationally deliver advisory services at scale.

In November 2021, Craig was appointed Executive Chairman of NSW Leaders, a business mentoring group for leading NSW businesses.

In July 2022, Craig West received the award of Doctor of Business Administration for his research thesis titled “Examination of the key factors driving business exit options in Australian Small and Medium Enterprises.”

Craig is passionate about encouraging business owners to think strategically, maximise the value of their business and achieve a successful exit.