RSM McGladrey ESOP Blog

Higher Profits

I have touted many times that engaged employees will increase profits.  If you do not believe me, check out Neville Hobson's blog on employee engagement.  There are several great references to studies on employee engagement.

One other tid-bit that he touches on is the difference between parent-to-child and adult-to-adult communication.  The parent/child model is about dependency, authority, and control.  The adult/adult model is about independence, respect, and autonomy.

Which model does your organization use?  If you want employee engagement, then you need to move to the adult/adult model.

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.

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

Computers Are Down!

Your computer network has crashed and you sit at your desk wondering what to do.  Easy answer - get off your behind and initiate some face to face conversations with those you need to or those you want to.

In our world today, face to face communications have moved to the back seat.  We are told to be efficient and use email, web casts, and the myriad of other communication processes.  There is a time and place when these tools are great, but you can not replace the value and efficiency of face to face communications when dealing with tough or sensitive issues.

I believe that many people use these tools as a crutch due to their poor communication skills.  So in reality, the communication problems are really never dealt with, they are just pushed off until a crisis arises.

Take the time to make a communications plan for these technical down times.  It is an opportunity not a problem.

Technorati Tags: communication, technology,

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

Time for Communication

Employees rate communication problems as one of the top areas for companies to improve on.  It has been that way since... shall we say the beginning of time.

One of the biggest obstacles to improving communications is that many people believe there is no time for it and it is a waste of time.  If there is no time, then the company is most likely reacting to everything that goes on.  There is no plan or strategy to deal with the problems that are inherent in running a business.  I would suggest you look into the strategic planning process.

If it is a waste of time, then I believe that the organization may need some training.  In many cases it needs to happen at the top levels of the organization first.  Without the buy in of the leaders, all training is a big waste of money.  Here is short list of ideas and trainings that are out there:

• Bring in outside communications expert
• Dale Carnegie Training
• Crucial Conversations
• Any college offerings on communications
• Team charters
• A company sponsored communications committee

Technorati Tags: communication, ESOP, business culture

The Rating Game

So what's your rating - a "1", maybe an "8", or is it an "A", no wait I have it "Somewhat agree", or even better "Outstanding"?  These are some of the terms that Dark Age companies use in their performance appraisals.  Also included in the dark ages are performance evaluations that are done only annually.  Groups of people sit around and try to rate each other and then try to come to some "supposedly mutual" agreement.  These types of performance appraisals waste a lot of time.  People walk out of them with no buy in and everyone is waiting for next year.

The human species needs feedback whether it is good or bad.  So much of who we are is related to what others think about us.  We need to know how we fit into the groups we are involved with.

I am a supporter of the Theory Y school that believes that people want to inherently learn, seek individual growth, and perform well in the work place.  I believe that we all do things well and that we all could improve in some area.

If your company practices open book management, includes your employees in strategic planning, shares the organization's wealth (through an ESOP or some other form of employee ownership), and practices some form of process improvement, consider a new performance appraisal system.  I would suggest one called the 3/3.

It is a one page feedback form that is used between two people or by a group.  It serves as a guide for a "good conversation," (like in Tom Cruise's movie The Last Samurai.)  It contains only three items:

1. What are the things you do well that enhance our working relationship and/or the company?
2. What are the things you could improve on to make our working relationship and/or the company better?
3. This is my commitment to you.

The human in us is now fed with the acknowledgment of what we do well, increased awareness for growth, and a personal commitment to relationships.

I was a part of this performance appraisal system for five years - it works.  The form could be used by all areas, between areas, across responsibility roles and whenever anyone wanted to use it.  If you would like to discuss this concept in more detail, contact me at your convenience.

Technorati Tags: business communications, performance appraisals, feedback

The Beginning

Greetings to all of you as you visit this blog for the first time.  This blog was created to spread the news about ESOP (Employee Stock Ownership Plan).  ESOPs offer the owners an exit strategy, the employees an opportunity to become owners, and the company an opportunity to conduct business in different ways that creates more value.  Sounds too good to be true - not at all.  I will guarantee that it will be hard work, as anything successful is!

This blog will expand, explain, and converse on the topics of company culture, leadership, teamwork, participation, communication and how this can drive company performance - maybe even change the world a bit.  It will touch on technical issues of ESOPs at times, but for most of this technical conversation I will redirect you to others for this sage information.

So who am I?  I am the mad doctor, the shaman of change, the challenger of the status quo, but mainly I am just Victor.  A person who has owned his own business, led an ESOP company, worked at a YMCA camp for 13 years, held numerous other positions,  and believes in the power of people.

So without a lot of noise, a very exciting event has begun.  I encourage you to come back, post your questions, throw out new ideas, and join in this wonderful conversation about employee ownership through ESOPs.