Ownership Culture vs. Traditional Culture
May 31, 2007 ESOP Companies are More Productive discusses how ESOP companies can increase the level of participation by embracing an open-book management style and actively involving the employees (both individually and in workgroups) in the decision-making process. Studies have demonstrated that ESOP companies with a high level of participation and a consistent ESOP communication and training program are more productive and grow faster than non-ESOP companies. We also recently discussed and provided examples of a company Combining Broad-Based Employee Ownership and Participation in the Management Process as well as the benefit of Immediately Focusing on Building an Ownership Culture. This NCEO article further defines an Ownership Culture. They use W.L. Gore & Associates as an example of a company with a true ownership culture (for more information on W.L. Gore’s six secrets of innovation success, check out this post.) They provide Jackson's Hardware, whose ESOP story is discussed in The Ultimate Employee Buy-in, as an example of a “typical employee ownership company”. The article defines six essential components to a successful ownership culture: - “An ownership stake: Employees receive and maintain a level of ownership that is financially significant to them.”
- “Ownership understanding: Employees understand what ownership means.”
- “Entrepreneurship training: People are trained to have the skills not just to do their own jobs, but to understand how the business works; they learn to be effective.”
- “Sharing information: Companies share financial and performance information with employees at the company and work team levels.”
- “Short-term incentives: Everyone shares in the short-term rewards of company success.”
- “Employee involvement: Employees have structured, regular opportunities to have meaningful input into decisions concerning the work they do.”
The article also compares the six components to a traditional culture and provides links to additional resources. | 
