Ownership Thinking Keys to Commitment and Motivation in Closely Held Companies John G. Mathers
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Transcript of 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
Page 2Building an Ownership Organization
“Negative” Motivation
Stress from various negative stimuli …
Diminishes frontal lobe activity
Page 3
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
Page 4
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)
Page 5
Sources: Danger by Judith Bardwick
Building an Ownership Organization
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
Page 6Building an Ownership Organization
Staying on Track
ORGPerformance
Plan
Objectives......
Done/Not Done...
3
3
3
Work Review
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33
3
3
3
WorkReview
Page 7Building an Ownership Organization
The Systems Model
QualityFeedback
Output
PaceFeedback
Process
Input
CustomersInternal/External
Building an Ownership Organization Page 8
Delay Tolerance
Hi
Lo Hi
Pre
dict
abili
tyMeasurements/Metrics
Page 9
Routine
QuantityTimeliness
CompletenessAccuracy
Project
ChangeImplemented
Deadline
Trouble-Shooting
Response TimeAverage Solution Time
First Pass SuccessManner
Negotiable
Project or Trouble-shooting
Building an Ownership Organization
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
Page 10Building an Ownership Organization
Ownership Thinking
The RightIncentives
The RightPeople
The RightEducation
The RightMeasures
Sources: Ownership Thinking by Brad Hams 2012Page 11
PowerfulResults
Building an Ownership Organization
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
Page 12Building an Ownership Organization
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)
Page 13Building an Ownership Organization
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
Building an Ownership Organization Page 14
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
Page 15Building an Ownership Organization
Adapted from Below, et. Al. Executive’s Guide to Strategic Planning, 1989
• 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
Page 16Building an Ownership Organization
Adapted from Below, et. Al. Executive’s Guide to Strategic Planning, 1989
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
Page 17Building an Ownership Organization
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