Beyond Employment: The Power of Ownership Culture in Organizations

Employees often complain that their jobs aren't as fulfilling or engaging as they desire and managers frequently suggest that many employees don't have a sense of personal responsibility or accountability for their work. One remedy for both problems is to develop a culture of ownership in your organization. Ownership in the workplace refers to a mindset and accompanying behaviors where employees feel a sense of responsibility, accountability, and investment in their work, tasks, projects, and the organization's overall success. It involves employees taking initiative, making independent decisions, and actively contributing to achieving the goals and objectives of the company as if they were the owners themselves. It means not waiting for others to act and caring about the outcome as much as an owner of the company would.

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Everybody seems to want an ownership culture, which is understandable considering its benefits. From increased employee engagement to innovation and initiative, employees who feel a sense of ownership of their tasks and responsibilities contribute considerably to the overall success of their organizations. Employees with a sense of ownership are deeply engaged, motivated, and committed to delivering high-quality results, often going above and beyond their defined roles to ensure success. This mindset fosters a culture of trust, collaboration, and innovation, driving organizational growth and sustainability. Furthermore, a culture of ownership enhances innovation and problem-solving by empowering employees to tackle organizational problems and make decisions that will improve the organization. Ownership also contributes to a greater sense of belonging and commitment. When you add all of these benefits together, the net product of a culture of ownership is improved individual and organizational productivity and performance. A company with an ownership culture is typically a very successful company.

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Most companies yearn for employees with a sense of ownership but don't often do the things that help incentivize the behaviors required. It harkens back to the classic Steven Kerr article "On the Folly of Hoping for A, While Rewarding B in that owners, executives, and managers expect a sense of ownership, but the organizational practices don't support it but discourage it. So, what strategies can organizations employ to foster a culture of ownership? First, organizations should empower employees by giving them autonomy and decision-making authority. When employees are free to make decisions concerning their responsibilities, they feel greater control and responsibility for the outcomes. Giving decision-making authority empowers employees to act quickly, decisively, and independently, increasing efficiency and effectiveness. Next, companies should clearly articulate a shared vision and common goals to help align employees’ efforts toward a collective purpose by regularly revisiting and reinforcing the organization’s vision and goals, keeping them top of mind for employees. When everyone understands the organization’s mission and objectives, they can see how their contributions impact the "big picture."

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Further, regular feedback helps employees understand how their work contributes to organizational and unit goals and where they can improve. Recognizing employees for their contributions and achievements reinforces a culture of ownership by acknowledging their efforts and impact on the organization. Everyone enjoys receiving kudos for a job well done, providing other workers with a role model to emulate. Additionally, open communication fosters trust among employees and between employees and management. When information is shared openly and transparently, employees feel valued and respected, cultivating a sense of ownership and loyalty to the organization. Finally, creating opportunities for collaboration and teamwork encourages employees to work together toward common goals, fostering a sense of shared ownership and accountability and promoting a culture of mutual support and cooperation. When employees work together to solve problems or accomplish tasks, they develop a sense of esprit de corps and mutual responsibility for the team's success.

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There are some great examples of successful companies with a strong culture of ownership. Netflix is known for its unique culture of freedom and responsibility. Employees are encouraged to take ownership of their projects and make decisions autonomously. The company's famous "Netflix Culture Deck" outlines principles such as "Freedom and Responsibility" and "Context, not Control," which emphasize trust in employees and their ability to drive innovation and success. Additionally, Google encourages a culture of ownership and innovation through initiatives like the "20% time" policy, where employees can spend a portion of their workweek pursuing projects of their choosing. This fosters a sense of ownership and creativity among employees, leading to groundbreaking products and solutions. Patagonia has a strong culture of environmental and social responsibility. Employees are encouraged to take ownership of sustainability initiatives and are empowered to make decisions aligned with the company's values of environmental stewardship and ethical business practices. Patagonia's clear articulation of its values attracts employees who share them, contributing to a greater sense of ownership.

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If your organization desires an ownership culture, how is it fostering it? What policies and techniques are being used to accomplish this end, and how successful have they been? I would love to hear from you!

This column also appeared in the Southern Miss Business newsletter. If you would like to receive the full newsletter, click this link https://eepurl.com/gjv7eU.