Real Ownerhsip or Psychic Ownership: What Works?

There is a lot of interest in sharing ownership with the employees of a company.  The belief is that sharing ownership increases the performance of a company.  I say maybe.

Why?  I believe that there has to be a high level of psychic ownership that goes hand in hand with real ownership.  Even better, the psychic ownership should precede the act of real ownership.

You can call an employee an owner, but if they have no means to give input, never see their input influence the company, do not understand the finances of the company, and have no idea how the ownership value in increased - it is a dead end street.

There are many companies where the employees have strong psychic ownership.  If you were to visit one, you would swear that they were owners.  The world of business forgets far to easily that the power of the mind and emotions will dominate the "facts".  Employees have to believe and feel they are owners before real ownership can make a difference. 

This is a current debate in the employee ownership world.  To see more on the debate go to this Linkedin discussion.

Comments

[Minter Dial]

The real issue is HOW to create that psychic ownership. Giving out stock option certificates is an easy process once you have made the necessary provisions. But, occupying the mental mindspace is a whole other challenge, one which is all too often messed up or avoided. A company needs to create a mission whose values speak to each individual such that the individual believes (a) they attach importance to the bigger goal; (b) they believe they are able to contribute; and (c) that the pleasure derived from the work experience is helping the individual to have a fuller, better life.

So, in short, many companies often go for the short cut (ESOPs) because the other road seems long and arduous.