Effective leadership doesn't just happen. You have to happen into it!

Friday, February 05, 2010

Investor-Employees


Your employees are your investors. I am not referring to those who have share options and other type of ‘ownership’ of the company. Even if your employees are like my self – those who work for a salary and has no real ownership of the company they are still your investors. You will be in trouble if they realize that and behave as such while you go about treating them like...well...workers.

I am an investor in my company and I behave like one. So, I bet the serious ‘investors’ among your employees will do the same and expect the same.

How do your employees qualify to be called your investors. Well, its pretty obvious isn’t it? While your share holders pay money to own a piece of your company, your employees pay with their Time, Energy (physical, mental and emotional) and their Knowledge (which includes such payments like creativity, innovation and loyalty). In return they expect hefty profits in the form of equitable salary, increments, bonuses, and other benefits. Their investment is usually with the intention of long term staying aspiration unlike your other type of investors.

An investor-employees in this context, they will exhibit the characteristics of your typical share-holding investors. They watch your stock price, they keep a look out for good news and bad news especially if you are a global company, they keep pushing to get that one bit of extra value more before they finally give up, throw in and sell out. They are also increasingly concerned whether you are doing your business ethically and possess genuine awareness of your social and environmental responsibilities. In fact, you may hoodwink your share-owning investors with glib PR driven ‘social campaigns’ but not your investor-employees who knows exactly who you are. Are you green enough? Are you promoting equal opportunity? Are you diversity friendly?

Now, I suppose not many organizations would really want their employees to be walking around like investors. Smug with their knowledge of power and authority. That would not be very palatable for many CEOs I guess. But, imagine for a second that your employees do indeed behave like investors. Let me share an example here. A hilarious one, at least to me, but one that should get the point across. Many years ago, I was a consultant for a 3- man boutique consulting company. I worked for this company as a consultant and got paid handsomely with car and housing allowances thrown in as the business grew and in between many other benefits and support. Years later, when I called my clients and friends to tell them that I will be leaving this company but that I will still be doing work for it on an independent basis, on more than one occasion during this calls; I was asked how much I was making by cashing out. It was only after the first two explanations, did it dawn on me that these people actually thought that I did in fact own part of the company. Now, how did they get that impression? Simple – from the way I behaved when I was representing it to them. Yes. I must have walked and talked as if I owned it. I must have done work for them as if it was my business. In fact, I did. And that was entirely because, my employer knew the power of ‘ownership’. How much return did I get from that company for my investment; which was substantial in terms of my output, I must say that it was very good. How much value did that company derive from me? I must say that it was many fold as I left behind quite a huge amount of intellectual property.

I am now with another company and one, through enlightened leadership, allows me the space to strut my ownership stuff. My breakfast shop guy asked me today why is that I am always doing work during my breakfast ( I am usually drafting important emails or proposals while I am having my First Coffee!)? I wanted to tell him – Why not? After all, I just opened for business. Although the official opening time for my company is 9 am, I am more than happy to get going an hour or more earlier. But I just smiled to him and said – banyak kerja lah! Well, I have invested in my company and I want to make sure every minute of the market opening hours count. As all investors, I want a guaranteed return for this month and for many more months. And some more.

Sounds too idealistic to strive for in your 30-employee or 3000 or 30,0000 employee company? It may be.

But imagine all these investors waiting to invest in you more?
What have you done today to attract their investing sentiments as they clocked in today?

The weekend is here and I will be working through it for my business as I need to get a proposal out by Monday. You want your employees to do the same? Make them your investors.

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