Every employee should have skin in the game

Last week I participated in a series of management/supervisor “refresher” training sessions for a company who has utilized our Equishare System for 10 years. For two days I observed group after group of leaders truly engaged in the performance of their company. Not only because they are great people, working in a great organization, but they also participate monthly in the financial outcome. If you have never witnessed an organization where every employees compensation is significantly affected… every month… by the financial performance of the business, it is a sight to behold. They have real skin in the game.

In my previous blog, I wrote about Visible Leadership. Other required ingredients in driving organizational performance are (A) Having and promoting a concise, tactical and understandable operating/financial plan for the month. (B)  Holding the organization accountable to the plan week by week. (C)  Measuring and rewarding results – real time. This is an energizing culture in which to work. However it does require personal and organizational discipline. Having and promoting a tactical, well designed plan that is universally known and understood may be challenging, but it is crucial to success. People need to know what is expected, where the end zone is, and the result when we get there. Not in broad generalities, rather in operational specifics – tied to the financials and to their paychecks!

What happens when you don’t have a plan?  One company president responded this way to his managers. “Shut it down. If we don’t know what we are going to produce next week, and what it is going to cost… well,  just shut it down.  I’m not going to operate millions of dollars of equipment and have our employees wondering what the objective is.”   This company president required a pro-forma op’s and financial plan every Thursday for the upcoming week.  This particular Thursday he had not seen one and wasn’t going to operate without one. Just as a football coach wouldn’t play without one on Sunday. Needless to say, the company president got one that week as well.

The discipline of a weekly plan outlining specific objectives and financial outcomes, for both the company and employees, is the catalyst for exceptional performance. The Equishare System provides the framework and foundation for this disciplined strategy. Linking every employees pay to the outcome reinforces specific behaviors and activities that drive results. Planning and measuring daily/weekly,  and rewarding monthly, creates an organizational culture where outstanding performance is the norm. For the benefit of the company and the employees.

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About Karl F. Muller

Specializing in driving Organizational Performance to new levels. Utilizing a tactical and focused four (4) part strategy to engage all employees in the pursuit and achievement of performance and real financial results. Applicable to manufacturing, service, distribution and corporate services groups. We have worked throughout North America with businesses and facilities ranging from 50 to 5,000 employees, union/non-union. Define... Measure... Pursue... Reward. Celebrating our 30th year. 200 public speaking engagements, 5,500 senior managers trained, 700 organizations assessed. We are serious, tactical, focused. No fancy corporate speak, no blue suits. Just Results. The Muller Group, Inc.
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