Do your employees think like owners?

We all know today’s companies need to be more nimble, more innovative and more entrepreneurial. This shift begins with employees. By now, so much ink has been spilled on the need for employee engagement and empowerment that our eyes glaze over when (yet another) expert starts in on it. What we don’t know is how to effect the cultural change that needs to happen—especially when the organization we lead is already set in its lumbering, bureaucratic ways.

The good news is there are some very specific steps you can take that will start the reaction shifts in your culture. It won’t happen overnight but it will happen. You just have to take the right actions. We know how to create engaged, empowered employees because we’ve lived it. We started Barefoot Cellars in the laundry room of a rented Sonoma County farmhouse and grew it into America’s No. 1 wine brand. We were able to do so because of our dedicated employees. Today, we teach corporations how to establish and strengthen entrepreneurial company cultures. 

In our book, “The Entrepreneurial Culture: 23 Ways to Engage and Empower Your People,” we explain how we kept the spirit of entrepreneurship alive in our company. Here we present tips on how to create an entrepreneurial culture at your organization.
 

Hire for hustle.

A great way to separate the entrepreneurial thinkers from those who aren’t is to place a special emphasis on hiring people with a sense of urgency, those who can and will move quickly and who don’t always have to be told what their next step should be. In other words, don’t hire solely based on someone’s technical skill set; you can always teach that. You can’t teach the other stuff, which is what will make the difference between an average company and a great company.
 

Don’t skimp on training.

Many companies approach orientation like it’s a formality. New employees are ushered in, given a quick tour of the office and a rundown of the benefits offered, and then they’re expected to get right to work. This minimalist approach to training can have some counterproductive consequences, especially where judgment, relationships and potential are involved.

Being thorough with training will take more time, energy, and maybe even money on the front end, but the long-term benefits of making sure your people know not just the “whats” but also the “whys” of their jobs will be worth it. Professional development is an essential part of attracting and keeping the best talent. People want to stay with companies that care enough to invest in them, not just via their salaries, but by helping them develop the skills that will help them build their careers. If you’re not providing this kind of training, rest assured, they will move to a company that does.
 

Use performance-based compensation.

When you have a compensation plan based on an hourly rate, you’re paying for attendance, not production. Regardless of how much they do or don’t accomplish, your employees will have an “I was there; pay me!” attitude…and can you blame them? However, while running Barefoot, we learned that performance-based compensation is better for everyone: you, your employees, and your company as a whole.
 

Get out of their way.

When your company isn’t able to meet its goals, your first inclination might be to blame your employees for being unable to execute. But you should take a look in the mirror before doling out blame. That’s because often leaders who want to blame their employees for not executing are actually using a leadership style that is keeping people from getting things done.

Do you find it difficult to delegate important projects? Do you refuse to let their work see the light of day until you’ve personally reviewed it, leaving them twiddling their thumbs until they’ve received your feedback? Do you insist on running every new idea through legal before letting an employee pursue it? Are you a micromanager?

Be honest. Do you engage in any of these behaviors? If so, it’s important to stop, step back and show your people that you trust them to make important decisions and do important work. When you do, you’ll give your team the freedom they need to help move the company forward—and you’ll free up a lot of time and energy for yourself, too.
 

Delegate effectively.

There’s a misconception that many leaders simply refuse to relinquish control of any of their tasks or projects to one of their subordinates. But, often, it isn’t about control at all. Many leaders want to delegate, but they don’t want it to look like they’re just dumping unwanted tasks on their employees or they don’t feel they have the time needed to train an employee to do a task.

Here’s the first step to take when it comes to delegation: Start handing over those tasks and projects that your employees can do or can almost do without your input. Trust their expertise and trust that if they really hit a wall, they’ll come to you. Everyone has a unique set of skills, abilities, and talents. Often, your people will have firm — and sometimes surprising—ideas about what they’d like to take on.
 

Let information flow freely.

Some companies use information as a type of currency—the right juicy piece of information can buy you lunch, help get you a promotion, bring kudos your way, or be traded for other valuable information. The flip side of this, of course, is that in large, siloed organizations it’s completely normal for one department or division to have no clue what the others are up to.

 You may be tempted to keep bad news and problems to yourself. Don’t. Be honest about the challenges your company is facing and ask the entire staff for solutions. You’ll probably get them.
 

Don’t wait for perfectly sunny conditions

To create a culture where entrepreneurial thinking can thrive, you must make sure everyone understands that great ideas are always welcome. Then, give your employees the freedom to move forward on projects, even when conditions aren’t exactly sunny.

You have to give your employees the same benefit. The truth is, conditions will never be perfect for any idea or initiative. You need to settle for “mostly sunny with a chance of showers” or even “light drizzle,” and plan to get a little wet. Keep in mind that if your employees don’t ever feel comfortable enough to share ideas or launch projects, your company will never benefit from them.
 

Never waste a perfectly good mistake.

Most leaders look at mistakes as something to be avoided, and as a result they pass that sentiment down to their employees. But the most innovative, agile companies embrace mistakes. When you move from a culture that punishes mistakes to one that embraces them, your employees will have the freedom to take risks, and that’s where entrepreneurial thinking leads to great innovation.

When an employee makes a mistake, you want a culture that encourages him or her to learn from the mistake and change what led to it rather than a culture that encourages him to fear punishment and sweep that mistake under the rug. You want an environment where employees can acknowledge mistakes, take responsibility for them, learn from them, and then move forward.

Once you’ve figured out why a mistake happened, resolve to stop playing the blame game. Instead, encourage your employees to aim their focus on what they can do to prevent the situation from reoccurring.
 

Ask, “How would I like it?”

Relationships have never been more important. A great way to ensure everyone at your company is committed to building strong relationships is to constantly ask, “How would I like it?” Houlihan recommends regularly asking yourself the following questions, answering honestly—even if it’s uncomfortable:

• Would I want to work for an employer who treated my labor as a commodity, trying to see how little I would work for? Or would I prefer an employer who sees people as assets, rewarding them for performance and acknowledging their achievements?
• As a leader, am I open and honest with employees about where the company stands, what challenges we’re facing and what I want?
  
   

Say, thank you.

Making gratitude part of your culture plays an essential role in creating employees who feel empowered and engaged. In truth, you should be saying thank you to everyone you contact through your company.

Everyone from employees to colleagues to vendors will respond positively when you say—or better yet, demonstrate—your thanks.

But let’s take a moment to focus on a type of thanks that can really make or break your business. The gratitude you express to or withhold from your employees. When your employees work hard on your company’s behalf, they deserve your thanks and appreciation.

Don’t take them for granted. Make sure your people know that you have noticed their efforts and that you’re grateful for their knowledge and help. In return you’ll gain their buy-in, loyalty, enthusiasm, and over-and-beyond efforts. Acknowledgment and validation of stellar performance breeds more of it.

Despite the chaos and uncertainty, this is a time of extreme opportunity for companies that recognize the value of entrepreneurial thinking. It is by far one of the greatest competitive advantages for companies today, and not just at the top of organizations, but at every level, from the bottom up. When you get your employees to think like owners, it will solve the biggest problem in business right now: lack of engagement. Once they see the difference they can make, everything will change. They’ll be excited to be part of the process. 

Michael Houlihan and Bonnie Harvey are coauthors of The Entrepreneurial Culture: 23 Ways to Engage and Empower Your People (Footnotes Press, 2014, www.TheBarefootSpirit.com), the companion to the New York Times best-selling business book The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand.