Ownership Thinking | Brad Hams

Summary of: Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit
By: Brad Hams

Introduction

Are you struggling with employees who feel entitled and lack engagement? The book ‘Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit’ by Brad Hams is here to help. The book explores how to inculcate an ‘Ownership Thinking’ mindset into your workforce, a transformation that will lead to greater productivity and company success. By adopting this approach, your employees will care deeply about your organization’s long-term profit and goals rather than focusing solely on their individual benefits or pay. The summary delves into components of Ownership Thinking, such as top-level hiring, financial education, aligning employee rewards with strategic objectives, and fostering a culture of accountability through key performance indicators (KPIs) and Rapid Improvement Plans (RIPs).

Ownership Thinking Attitude

A culture of entitlement and “me” thinking can undermine a company’s success. Employees need an Ownership Thinking attitude, where they take pride in their work and actively contribute to the company’s success. This means caring about the long-term success of the business as much as their own pay and benefits. Companies need to avoid deadbeats who simply show up to earn a paycheck without contributing; they need dedicated team members who act like co-owners. It’s not easy to change a culture of entitlement, but companies that do will reap the rewards of a dedicated and productive workforce.

Ownership Thinking for Employee Development

Transform your organization into a sustainable success with Ownership Thinking. This structured program can help employees deploy their best efforts to grow your business. By providing financial education and incentives, workers can understand the impact of their contributions on the company’s bottom line. When this sense of ownership is achieved, employees become enthusiastic partners acting in the interest of your business.

An Ownership Thinking program can establish an overall culture of excellence in place of just isolated pockets of success within a firm. It aims to get all employees to align with the ethos and values of the organization that they work for. The program can be applied to all levels of staff and can be customized to meet the specific goals and objectives of your firm.

When an Ownership Thinking program was introduced at an office furniture company, they turned their $395,000 loss into a profit of $650,000 in just one year. Furthermore, a technology firm tripled their bottom line and awarded $300,000 in bonuses to their team members through the same program.

To realize these results, employees need to understand the ins and outs of the finances. This way, they can have clearer insights into how their contributions to their work positively impact the company’s financial performance. Ownership Thinking is a powerful tool that can take your business to the next level.

Educating Employees About Business Finances

Most employees lack understanding of business finance, leading to inaccurate speculation about their company’s profits and wastage of resources. Corporate leaders must invest in educating their employees about business finances, including basic financial statements and profit before tax, in order to quell resentment and improve overall performance. Statistically, companies with ESOPs and Ownership Thinking cultures outperform their non-ESOP competitors.

Effective Incentive Programs

Incentive programs can either be a powerful tool to motivate employees and drive profits or a cost that drains profits. The success of an incentive program is based on proper deployment and avoiding common mistakes. Programs that are too complex or not tied directly to the company’s financial performance lead to employee confusion and entitlement. The author recommends tying incentives to the company’s performance, rather than individual performance, and ensuring they self-fund through increased revenue. This approach can help avoid ill will among employees and instead foster motivation and productivity.

Boosting Employee Productivity

Effective use of Key Performance Indicators (KPIs) can help employees measure their performance and boost productivity. This book emphasizes the importance of selecting the right KPIs and tracking progress, thereby aiding rapid improvement plans.

To enhance productivity and motivation of employees, it is necessary to measure performance against relevant KPIs or activity-based measurements. The book advises that all employees must monitor specific KPIs that apply to their roles and work diligently towards achieving their individual KPI goals. In different industries, KPIs can differ. For example, the construction industry may monitor “win rate on bids” or “plus or minus days to schedule variance”, while retail may focus on “sales per staff hour” or “average tickets”. On the other hand, software firms may measure “call response time” or “number of demos”, and mortgage firms may keep track of “average loan volume per agent” or “average time to close.”

The book argues that Rapid Improvement Plans are a vital component of Ownership Thinking. However, it emphasizes that too many KPIs can be overwhelming. The focus must be on the most important ones, and the leadership team should be involved in selecting the right KPIs. The book encourages creating tracking scoreboards and organizing brief meetings, called “huddles,” where participants can forecast business results. The aim is to help individuals accomplish their goals or even surpass them. Otherwise, such meetings may become a source of annoyance. By selecting the right KPIs, monitoring performance, and collaborating to achieve goals, employees can enhance productivity and engagement.

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