Changing the Entitled Mindset to one of Ownership

In August 2011, our long-term client, NPG was facing a few major issues. The owners recognised that they were having difficulty attracting and retaining staff with the right skills and right attitude/cultural fit, they could not get staff to think about the company’s wellbeing as well as their own and they found it tough to find the right remuneration and incentives strategy for their disengaged, blue collar work environment. This was exacerbated by disharmony between two departments of the business and cashflow restraints.

The owners needed to take significant action, and with the help of Ownership Mindset they began with four major steps:

1. Define the overall strategy and vision
2. Improve people management and communication
3. Implement ownership mindset to move the company towards a business of ‘business people’
4. Appoint an independent General Manager to reduce the reliance on owners and move the company forwards

With these four actions, the business became cohesive and productive. Staff members understood the vision and strategy of the business and the owners, and gained a clearer understanding of what was expected of them. They felt more included and informed through monthly company-wide information sessions. There is more ‘we’ than ‘me’ thinking in the culture, and a greater sense of purpose, visibility and accountability. The two owners closest to retirement appointed and began grooming their successors.

“Since kicking off our Ownership Mindset program, absenteeism has already dropped by at least one third! Overall, productivity is higher and our employees are taking more interest in the financial well-being of the business. We really feel like we’re ‘sharing the insomnia’ that comes with running the business. We’re positive that, by doing business the Ownership Mindset way, our profit is going to soar and we’ll all be having more fun working together as a result!”

The benefits of Ownership Mindset can be seen almost immediately, and the best part is that they last. And it’s not just about money. The culture of accountability, winning and team alignment drives staff to achieve long-term goals. Once they are engaged and understand how they can affect the performance of the business, they are motivated to keep on making improvements.

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.