ownership thinking keys to commitment and motivation in closely held companies john g. mathers

Ownership ThinkingKeys to Commitment and Motivation in Closely Held Companies

John G. Mathers 2014

Contents

• Motivation – Negative and Effective• The Earning Environment• Two Approaches to Growth• Performance Plans and Work Reviews• Systems Thinking • The Task Grid• Ownership Assumptions• Ownership Thinking Model

Building an Ownership Organization

“Negative” Motivation

Stress from various negative stimuli …

Diminishes frontal lobe activity

Surviving(4Fs)

CreatingMeaning

PERF

ORM

ANCE

TIME

Negative Feedback

Punishment

Advice

Sources: Federal Reserve Study 2009; MIT Incentives Study 2010; Wharton Study 2010Building an Ownership Organization

3 Keys to Self-MotivationAutonomy• Choosing what to do, when to do it, where to do it and how to do it

- goals, tasks, work schedules and work methods• Greater responsibility for work, investing more time and energy,

developing more efficient and innovative processes ultimately leads to producing higher quality and quantity

Mastery• Developing specialized knowledge, skills and expertise• Given opportunities for mastery, employees naturally pursue them

in order to learn and contribute morePurpose:• Contributing to a meaningful effort or cause• When employees meet clients, customers or end users who benefit

from their work, they gain a clearer understanding of the purpose of their jobs, which motivates them to work harder and smarter

Sources: Drive: The Surprising Truth About What Motivates Us by Daniel Pink 2012Building an Ownership Organization

Earning Environment

Key ingredients:– Purposeful, disciplines energy– Requires realistic opportunities– Pressure to perform (parameters)– Preference for accountability– Respect as a result of accomplishments (from the

outside world and within the company)

Sources: Danger by Judith Bardwick


Approaches to Growth

PERSONAL RELATIONSHIPS

PROCESSES

GOALS

ROLES&

RESPONSIBILITIES

TASK - ORIENTED- Focus is on an overarching goal- Assumes interdependence- Ability to perform against the plan is the

key variable.

CLASSIC- Focus is on people- Assumes independence- Satisfying relationships is the key

variable

PERSONAL RELATIONSHIPS

METHODS

GOALS


Staying on Track

ORGPerformance

Plan

Objectives......

Done/Not Done...

3

3

3

Work Review

.

.

.

.

.

33

3

3

3

WorkReview


The Systems Model

QualityFeedback

Output

PaceFeedback

Process

Input

CustomersInternal/External


Delay Tolerance

Hi

Lo Hi

Pre

dict

abili

tyMeasurements/Metrics

Routine

QuantityTimeliness

CompletenessAccuracy

Project

ChangeImplemented

Deadline

Trouble-Shooting

Response TimeAverage Solution Time

First Pass SuccessManner

Negotiable

Project or Trouble-shooting


Ownership AssumptionsCharacteristics of great companies:

– They care about their people, community, environment and their product/service

– They have fun– They have high expectations of performance

Assumptions about People (Abraham Maslow):– Assume all your people have the impulse to achieve– Assume an active trend to self-actualization– Assume that people can take it (tough, stronger than most

give credit for)– Assume that people are improvable


Ownership Thinking

The RightIncentives

The RightPeople

The RightEducation

The RightMeasures

Sources: Ownership Thinking by Brad Hams 2012

PowerfulResults


Partnership Contract

We want and provide a work environment that is:– Enjoyable and rewarding– A place to learn and grow– Filled with continuous financial opportunities

We are all adults who:– Respect each other rather than shooting one

another– Help one another– Don’t hide problems and don’t argue with reality


Ownership Implementation

1. Discuss process with leadership team2. Provide a current assessment3. Survey employees/partners 4. Complete financial trend analysis –

historical/near future5. Develop KPIs – define value-driven organization6. Design incentives7. Implement a Rapid Improvement Plan (RIP)


A Model of Strategic Planning

Performance Plans

Programs/Projects

Resources

VisionMission

Strategy

Strategic Analysis

Adapted from Below, et. Al. Executive’s Guide to Strategic Planning, 1989


System of Strategic Alignment

Core Values & BeliefsPurposeMission

VISION

Performance Plans• What is Going to Be Done by Whom

by When

Work Reviews• Ahead, On Track, Behind or At Risk• Recommendations

TACTICS

STRATEGY

à Internal Assessmentà External Assessmentà Strategic Decisions & Objectives• Customers• Capabilities• Products and Services• Finance• People and Organization• Systems



• Internal Assessment¦Resources and Internal Capabilities¦Core Competencies¦Strengths and Weaknesses

• External Assessment¦Industry, Market and Technological Trends¦Competitive Analysis¦Social, Demographic and Regulatory Environment¦Key Opportunities and Threats

• Strategic Decisions¦ Customers¦ Capabilities¦ Products/Services¦ Finances¦People and Organization¦ Systems

• Strategic Objectives

¦ The Vital Few

VISION

STRATEGY

TACTICS

Strategy Development



Huddle & Work ReviewHuddle:

– This is not a results meeting but a forecasting meeting– Include as many as appropriate to size of company, assuring that

those responsible for results are present– Schedule regularly based on normal workload– Key participants must attend and be prepared to contribute– Do not fill in forecasts before the meeting– Have specific agenda and short timeframe– Cop and scribe for each meeting

Work Review:– Regular review of performance against goals – comparative– Issue focused and exception based– Graphically represented– Action oriented – all issues come with recommendations– 30 minutes or less


3020 Bridgeway, Suite 414, Sausalito CA 94965Tel: 1 (415) 381-4660 Email: [email protected] Web:

www.eVoassociates.com

3020 Bridgeway, Suite 414, Sausalito CA 94965Tel: 1 (415) 381-4660 Email: [email protected] Web:

www.eVoassociates.com

Speeding the natural evolution of your business

ownership thinking keys to commitment and motivation in closely held companies john g. mathers

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