Leadership Challenges: The Problem with Ownership and Purpose - Strategies for Guiding Your Team Successfully
Julius Bachmann heads up a CEO coaching firm for scale-ups known as Bachmann Catalyst. He's switched gears from his days as a VC investor.
In the quest to nurture an entrepreneurial spirit among employees, the phrase "think like an owner" may sound appealing, but it often drowns in ambiguity. Ceos frequently battle with their dashboard woes, stumbling upon a sticking point that brings the leadership team of many scale-ups together - "Why aren't our employees grabbing the bull by the horns?" A Berlin-based CEO voices his concerns: "We've deployed OKRs, opened our financial books, even an ESOP - and yet, most staff remain mere workers."
A portrait of frustration echoes across startups of varying sizes. One Berlin FinTech CEO tried his hand at individual rewards for enhanced self-accountability, only to witness a temporary surge in productivity, followed by entrenched silo mentality and a game of passing the buck once issues popped up.
Cracking the Responsibility Code
Revealing the Hidden Gems of Collaboration
The root cause of responsibility issues is somewhat cloaked. It isn't about delegating more duties to individuals; rather, it lies in the connections between team members.
Imagine the scene: Monday morning, 8:30 AM. The Berlin-based scale-up's leadership huddles to discuss the same persistent issue - "Why can't our employees take ownership?" The CTO slams his fist on the table: "We've rolled out OKRs, unveiled our financials, even have an ESOP - yet most people act like paid workers, not stakes in the game."
Sound familiar? This scene repeats itself in firms of varying sizes. Placing the onus on individuals might initially spark increased productivity, but it leads to detrimental offshoots, such as siloed thinking and the finger-pointing blame game.
Taking Stock of Responsibility
Setting the Stage
Curious about the nuances of responsibility in scale-ups, let's dive deeper. If you're intrigued and want more insight into your subscription or subscription management options, click "agree" to integrate our external subscription service provided by "Piano." With this move, profiles (including those based on cookie IDs) may be created or updated, even outside the EEA. Your consent to this action also applies to the transfer of personal data to third countries, such as the US, under Art 49 (1) (a) GDPR. For additional information on data processing, visit our privacy policy or privacy statement, both accessible in the footer of our offering. You can withdraw consent at any time via the "Withdraw Tracking" link in the footer.
Untangling the Web of Responsibility
The Pitfalls of the "Think Like an Entrepreneur" Approach
- Individual interests over collective goals: When employees are incentivized to act like entrepreneurs, they might focus on personal victories over team or company objectives, exacerbating a lack of synchronization and alliance so crucial for collective responsibility in scale-ups.
- Misaligned incentives: Enticing individual entrepreneurial behavior can foster misaligned incentives, causing employees to zero in on short-term benefits rather than long-term collective advantages, creating a situation where some team members gain without contributing equitably.
Stepping Stones to Collective Accountability
By adopting our proposed strategies, organizations can engender an environment where collective responsibility is championed and cemented, leading to more effective cooperation and organizational prosperity.
- Group incentives and team-based rewards: Implementing group incentives ensures that rewards are tied to collective achievements instead of individual performance, fostering teamwork and shared responsibility.
- Forge a cultural ethos: Nurturing a culture that respects teamwork and collective victory can serve as a powerful motivator. Encouraging social norms that celebrate cooperation and shared objectives can help spawn a sense of ownership among employees.
- Economic incentives with a collective edge: Design financial incentives that reward collective progress rather than individual achievements to maintain a harmony between individual efforts and broader organizational goals.
- Corporate service incentives: Offering incentives for volunteerism can encourage employees to engage in activities that benefit the community, cultivating a sense of responsibility and camaraderie.
- Shared leadership and governance: Implement governance structures that involve employees in decision-making processes, enhancing their sense of ownership and responsibility. This shared leadership helps align individual actions with collective goals.
By embracing these strategies, businesses can create a culture where collective responsibility is treasured and nurtured, paving the way for more productive teamwork and organizational success.
What can businesses do to foster collective responsibility among employees in scale-ups and avoid the pitfalls of individual incentives? They can implement group incentives tied to collective achievements, forge a cultural ethos that respects teamwork and collective victory, design financial incentives with a collective edge, offer incentives for volunteerism, and implement shared leadership and governance structures.
Ceos often struggle with the question of why employees aren't taking ownership, and this issue commonly arises among the leadership teams of many scale-ups. The root cause of this problem isn't about delegating more duties to individuals; instead, it lies in the connections between team members.
By focusing on group incentives, companies can encourage a shared sense of responsibility and collective accountability, ultimately leading to more effective cooperation and organizational prosperity. To agree and enable such changes, businesses may consider integrating external subscription services that can provide additional insights into these matters. Through this move, personal data may be transferred to third countries under Art 49 (1) (a) GDPR.
Ultimately, adopting these strategies can help businesses create a culture where collective responsibility is cherished, paving the way for more productive teamwork and organizational success.
