True Ownership

Many years of facing the best and "not-so-great" practices in leadership and management taught me valuable lessons. I have decided to share my learnings and insights to generate collaborative conversations around this topic and hopefully guide talented leaders to unlock profitable and sustainable growth in their own organizations.

True ownership mindset is displayed by people who think and behave like the owner of the business. It is a critical feature of an organization that delivers profitable and sustainable growth. According to a study by the Corporate Executive Board, organizations that cultivate an ownership mentality have employees who are 16% more productive, 18% more likely to stay with the company, and 30% more likely to perform at high levels.

Many companies attempt to create this mindset by aligning variable compensation with organizational targets and/or through stock option programs. But these tools alone are largely ineffective because they correlate weakly with everyday decisions and actions.

The critical missing element is a strong culture that promotes ownership. People need to believe that they have a stake in the future of the company, that they are given the information and autonomy to act as key contributors to positive change, that they will be openly recognized and rewarded for behaving like an owner, and finally that their leaders themselves display and promote ownership-minded behaviors, even for the smallest and most trivial decisions.

If people feel marginalized, if they feel like victims instead of actors of change, if their ownership-driven behavior goes unrewarded and politics drives recognition, if they don't trust their leaders, if their leaders behave selfishly and inconsistently, people will hardly behave like owners, regardless of the compensation model.

The key pillar of an ownership-mindset culture is Trust. Trust is created with transparency and consistency. It is a bond between the organization, its leaders, and its people. A bond that ensures clearly-set policies and rules will be adhered to in a fair, unbiased and consistent manner. Trust ensures people exert the extra effort because they know the organization will recognize them in the end.

But creating such a culture, especially in old and large organizations isn't easy. It requires effort and discipline from its leaders. It requires attention to important details in everyday behavior that build trust. But the value it can generate pays for the effort many times over.