RSM McGladrey ESOP Blog

Wasted Time

Do you realize that studies show the average worker wastes somewhere between 20%-55% of their time.  How much time does your organization waste?

If you could recover only 50% of this time, your profits would increase 10%-27.5%.  When you evaluate the employee owned business model, ask yourself where you could get a bigger bang for the buck?  Is it in lean manufacturing, marketing, research and development or could it be as simple as engaging your workforce?

I believe it is engaging your work force.  So many people say we do not have time for meetings, communication, training, and learning.  The research says different.  Time is not wasted if it is focused on benefiting individuals or the company's culture.

This "wasted time" is your golden opportunity to drive profits, engage your workforce, and make life more enjoyable.

We Need To Believe In Something

I watched a great movie called Second Hand Lions with Robert Duvall and Michael Caine.  In the movie these two great uncles raise their nephew, and in one of the scenes Michael Caine says to his nephew, "People have to have something to believe in.  It is what keeps us going".

What do your employee owners believe in?  Have you given them something that they believe in, something that they will follow passionately? 

Take some time to think on this - for yourself and for your ESOP company.  Belief in something bigger than ourselves gives us a purpose.  It gives us something to focus our energy on.  It adds meaning to our daily lives.

I would love to hear what your employee owners believe in.

Make a Choice

Are you a victim?  The vast majority of people in the workforce today feel like victims.  The reason: they are afraid to make choices.

It is easier to sit back and point the finger at your boss, the company, your spouse, and a host of other scapegoats.  The saying, "When you point your finger there are three fingers pointing right back at you," is so true.  We do not want to own up to the choices that we have made and for good reason.  It may take some serious thought as to where the original choice was made that enables you to be the victim. 

Somewhere in your past you made a conscious choice - you alone - no one was there to twist your arm.  Maybe you did not spend the time or get the information that you needed to make a good choice - but you chose that scenario as well.  At some point in our younger years, we are evolved enough to know that we live with our choices.  Too many people go to the grave still choosing to be a victim.

A short list of important choices:

• Getting married
• Having children
• Buying new instead of used
• Eating a donut instead of an orange
• The attitude I will approach my day with
• To exercise
• Getting a divorce
• To quit feeding my brain and my soul
• Using credit cards
• Not taking vacation
• Buying a home
• Last but not least - NOT TO BE A VICTIM

The Authentic Owner

So as an owner, are we authentic or fake?  An article by Jay Walljasper of Ode magazine, gives an interesting view on authenticity and how it is impacting our world.  He states that people are looking to match what is inside of them with what they are doing on a daily basis.

I believe there are many companies that claim and brand themselves as employee owned, but with no authenticity.  When you talk to these employee owners, they speak and act as most employees in any company - blah, bored, and tied to the job.

Authentic employee ownership starts with these important traits:

• Leaders that walk the talk
• Practice open book management
• Employee owner communications committee
• All employee owners have a path of input into the business
• Opportunity for personal growth
• An environment of laughter and fun

So how does your company stack up?

Understanding Safety

I strongly believe that the biggest hurdle to organizational change and employee engagement is the issue of feeling safe.  I recently had a conversation with an employee owner of an ESOP company that dealt specifically with this issue.

The key comment that struck a tune with me was "I am not going to stick my neck out at this time.  It is too risky and I need my job."  This person was passionate about change, employee engagement, and the entire ownership idea, but only to the point of her safety.

Imagine the power of an organization where the employee owners are fearless.  If this was the case, I guarantee you that you would get more innovation, productivity, and honest feedback.  It would also curb the internal politics which waste so much time and energy.

Take a good look at yourself.  Really evaluate how safe you feel in your work situation.  Remember that safety can relate to many aspects of our lives - money, housing, relationships, health, food, and many more.  Now put yourself in the shoes of those you have power over and try to think of how they would view their safety.

I hope the light bulb just turned on for you.  Start today - define what safety means to you, your fellow employee owners, and the organization. 

Technorati Tags: safety, company culture, engaged employees

Customers: Who is #1?

In business we say the customer is #1.  I believe there is a huge disconnect on who the #1 customer really is.  Is it the external customer or your internal customers, the employees? 

I believe the #1 customer is the employee, especially in an employee owned company.  There is an obligation to make sure that the owners of the company are getting a perceived high rate of return.  The return can be in the form of wages, benefits, bonuses, opportunities for advancement, education, a sense of belonging, opportunities to give input on how the company functions, and many more.

The key is that it is a perceived rate of return.  Do you really know what your employee owner's rate of return is?  If not, you better find out before the external customer starts paying the price for apathy, poor quality, lack of follow through, absenteeism, and the cost of high employee turnover.

If employee owners are receiving a high rate of return, then they will rise to the needs of the external customer (a logical conclusion.)  Now try the reverse.  If external customers are receiving a high rate of return, then they will rise to the needs of the internal customers, your employee owners (as Spock on Star Trek would say "That is illogical.")  Now can you see the huge disconnect?  The #1 customer is the internal customer - your employee owners.   

Technorati Tags: corporate culture, customer service, employee ownership

Walk The Talk

Robert Heller has a great article on building culture that you should take a look at.  In his article he mentions the concept of getting employees to act like owner-operators. 

Well, this should be simple for organizations that are employee owned - WRONG!  It takes time and patience.  The top leadership in the company must support ownership behaviors and they must walk the talk.

I believe this is where so many organizations fail.  The leaders talk it, but when their employees watch their day to day actions they see total hypocrisy.  These leaders become the talking idiots that permeate the stories of our business world today.

LEADERS - if you want change, then you have to exhibit it in everything you do.  It is not easy, but no one ever said that great leadership was easy.

Technorati Tags: culture, leadership, employee ownership

World Class Organizations

Do you wish you worked for a world class organization?  According to the Gallup organization, there are three main contributors in becoming a world class organization.  They are:

• Growing numbers of customers
• Positive cash flow
• Good place to work

The first two are easily self explanatory.  What makes a good place to work is not so easy.  Gallup has a data base of over 4.5 million employees that they can access through surveys and statistical research.  So when Gallup puts out information, it is not pulled out of the clear blue sky.  It is backed up with hard data.

According to Gallup, a "Good place to work" is defined as a culture that has these six traits:

• Employees are doing what they do best
• Employees know that somebody in the company cares
• Employees know what is expected of them
• Employees are recognized for what they do
• Employees have the opportunity to personally grow and learn
• Employees feel they are productive in what they do

I find it very interesting that this statistically valid data supports what I would view as just plain ole common sense.  For those of you that work in organizations that seem to have zero common sense, here is hard data to support a change initiative.  How could your CEO or other leader not want to support a change initiative to become a world class organization?  It makes for a powerful argument. 

I encourage you to evaluate how your company goes about supporting these traits.  When you see the gaps, this is your opportunity to start changing your culture and move towards becoming a world class employee owned organization.

Technorati Tags: employee ownership, culture, ESOP

Company Culture

CULTURE - This word is getting a lot of focus in the business world today. I have a definition that I have been using for several years now: "CULT" where you "U"NDERSTAND to "R"EMAIN or "E"XIT - "CULTURE".

I am not a demon worshiper or have friends that are aliens.  I do believe that company cultures do have "cult" traits.  I am sure you have heard the saying "They did not fit into our culture; that is why they left."  These people were most likely ostracized, put in the back room, looked at with suspicion.  Cults do the same thing.

I would encourage you to really think about the "cult"ure of your employee owned company.  Does your culture add to the bottom line, does it create fanatic owners, does it improve the lives of its employee owners outside of the workplace, does it help increase the value of your ESOP stock?

Is your "cult"ure one that looks at the leadership of the company as a bunch of hooded fiends that meet in secret and plot your doom?  Maybe the leadership of the company looks at the employee owners the same way.  I have seen too many companies where everyone is operating under a hood of secrecy.

I hope that your "cult"ure is the type where people are knocking the doors down to get a chance to work there.  The community and marketplace respect what you have created and see how it plays out in the lives of its employee owners.  There is a sense of pride that people feel when dealing with your company.  It is a "cult"ure where people have thrown off the hoods and approach their work with open eyes and minds.

Technorati Tags: company culture, ESOP, employee ownership

Development - Who is Responsible?

Who is responsible for creating employee owners who add value to the organization - the company or the individual?  This question will generate a lot of valid arguments on both sides, but I want to forgo these arguments and go straight to a potential solution.

I would propose that ESOP companies support a resume program.  It provides a formal process for the company to review the talents of its employee owners and a formal process where individuals can learn the finer points of resume writing and identifying their growth needs.  Imagine the power, a company that wants to prepare its employee owners for future possibilities coupled with individuals taking a planned approach to their development.

I know - what if we loose good people?  Get over it -good people will always be lost because they are looking for opportunities at all times.  These good people will be some of your best advocates for new recruits if they feel any loyalty to your organization.  So start creating loyalty by being loyal to your employee owners development.

Technorati Tags: culture, career, loyalty, employee ownership