The goal of Ownership Thinking (OT) is to create an organization of employees who think and act like owners toward creating wealth (which of course creates opportunity). It’s not only about making money, however. OT is also an excellent cultural model, reflected statistically by the fact that companies practicing OT retain employees at a 200% better rate than companies that don’t.
As shown in our model above, there are four components of Ownership Thinking:
- The Right People: Ownership Thinking creates an environment that promotes learning and development, while at the same time increasing visibility and accountability. Your best people will excel, and your poorest performers are generally self-selected out by their peers.
- The Right Education: Employees are taught the fundamentals of business and finance, so that they are better equipped to make decisions that are financially sound.
- The Right Measures: Rather than focusing only on lagging financial measures, an emphasis is placed on identifying the most critical leading, activity based measures (Key Performance Indicators, or KPIs), and utilizing those KPIs to forecast results on a regular, formal basis.
- The Right Incentives: The process of employee education and focusing on the right measures in an environment of high visibility and accountability will increase your organization’s profitability – guaranteed. We can now design and implement a broad based incentive plan, because it is self funding.
Until next time,
Perry Phillips, President
Ownership Thinking Canada Inc.
Visit www.ownershipthinking.ca to learn more about Ownership Thinking Canada and our new online e-learning tool.
Join us for a free Ownership Thinking breakfast session. More information on upcoming sessions in Edmonton, Calgary, Guelph and Toronto.