By Alex Moss, Principal, Praxis Consulting Group, Philadelphia, PA Chair, The ESOP Association s Advisory Committee on Ownership Culture

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1 The ESOP Association s Advisory Committee on Ownership Culture By Alex Moss, Principal, Praxis Consulting Group, Philadelphia, PA Chair, The ESOP Association s Advisory Committee on Ownership Culture Research studies and anecdotal evidence repeatedly confirm that ownership culture is the key element in unlocking the competitive advantage of employee ownership. Members of the ESOP Association s Advisory Committee on Ownership Culture represent both professional advisors to employee ownership companies and also leaders within those companies. We specialize in the set of activities related to ownership culture development, such as employee participation, communications, education, and motivation. We assist companies in creating a widely-held psychology of ownership, where employee owners are genuinely, enthusiastically and effectively involved in making their companies the best they can be. In so doing, we help create the success stories of companies that build on foundation provided by the ESOP legal framework, to make their ESOPs something their employees care about passionately. Our work facilitates the emergence of ESOP champions, our work increases employees understanding of ESOPs and employee participation in company operations, and ultimately our works helps companies leverage shared ownership to achieve improved business success. The Ownership Culture Advisory Committee serves the broader mission of the ESOP Association by supporting ESOPs and employee ownership in several critical ways: We encourage and support companies in building ownership cultures that contribute to the competitive success of their individual firms; We provide leadership, programming, writing, peer networking, and other support for employee ownership companies, and for those considering employee ownership; We advise Association and its other professional advisory committees regarding issues and activities within our areas of expertise; We provide valuable professional development opportunities for both professional and corporate members. We strengthen employee-ownership in America by enhancing the success of employee owned businesses, by creating role models for other companies to follow, and by generating positive good will in support of the Association s public policy initiatives. Our members are engaged in a range of activities in developing ownership culture within employee owned companies. Common activities that fall under this general umbrella include: General training about ESOP mechanics; ESOP committees; The psychology of ownership; Open-book management; Participation systems;

2 Corporate vision statements; Organizational behavior; Methods of reducing cynicism; Developing learning organizations; Measurement of organizational culture; Strategic planning; The psychology of communications; Leadership skills; and Linking individual behavior to corporate outcomes. The above activities represent the work being done to develop ownership culture within individual ESOP companies. Within the ESOP Association itself, the role of the Ownership Culture Committee is to support this work by sharing knowledge regarding best practices, common challenges, and emerging creative approaches. The Committee is engaged in a number of active projects. Several of these are ongoing, semi-permanent activities. Others are ad hoc projects that will be completed and we will move on to other work. Examples of the Committee s ongoing activities include: Annual Awards for Communications Excellence (AACE) program This competitive awards program recognizes leading ESOP companies for their excellence in a range of communications-related activities. Submissions are accepted in the Spring each year, and Awards are announced at the Annual Conference. Publications The Committee prepares various written publications on behalf of the Association. A few examples include: Books: for example, Journey to an Ownership Culture, provides a broad overview of the ownership culture landscape, with a range of chapters on the theory along with practical how to examples and reference material. Newsletter articles: Ownership Advantage columns in the Association s monthly ESOP Report (which is the publication that you are now reading). The Ownership Advantage column introduces one specific topic or company case study each month. Collections: The Committee assists Association staff in maintaining a collection of all prior Ownership Advantage columns. A newly revised collection, updated to include the most recent columns, is being prepared as this article goes to press, so that readers may enjoy all of these columns in both print and searchable CD format. Programs

3 The Ownership Culture Committee is responsible for one annual nation-wide event the Communications Conference and for developing the programming for the Human Side of ESOPs Track at other Association meetings. Communications Conference: the Association sponsors this meeting as the one large-scale national event each year that focuses almost exclusively on ownership culture issues. The Ownership Culture Committee designs the entire program and selects speakers for this conference. Annual Conference (Washington, DC): This meeting has both technical and human side tracks. The Committee works closely with the Association s State and Regional Chapters to design the program and select speakers for the Human Side of ESOPs track. Two-Day Technical Conference (Las Vegas): This meeting focuses primarily on technical issues, but a small number of sessions are reserved to meet the needs of attendees with respect to human side issues. The Committee selects speakers for the Human Side of ESOPs track. Other national meetings: The Committee provides speakers for selected ownership culture topics at other Association meetings, including the S- Corporation seminar, the Repurchase Liability Seminar, and others as needed. Speakers Bureau The Committee offers a list of interested speakers on a range of ownership culture topics. Speakers are available to State and Regional Chapters, to existing individual ESOP companies, and to potential ESOP companies if referred by their other professional advisors. A list of Speakers and their respective areas of expertise is available to Association members on the members-only page of the Association s website, [replace with link to Speakers Bureau page]. Other Association initiatives The Committee continues to advise Association staff in the preparation of videos, web-based materials, and other educational background information that echoes the ownership culture theme. At any given time, a number of our members serve in other leadership positions within the Association, providing continuity with other initiatives and maintaining communications channels as best as possible within this dynamic community. More generally, either Association staff or the Committee may request our input into any Association activity that addresses our relevant subject areas of expertise. As is the case with most volunteer committees, and with most good ideas: our projects arise from the interests of our members and we succeed based on our individual and collective will to get these projects accomplished. The Committee is currently close to its membership capacity, but there are generally a few open membership slots from time to time. We encourage interested professional advisors in the ownership culture arena, as

4 well as leaders and employee owners in ESOP companies, to contact us regarding participation in Committee activities and in potential future membership. Ownership is often described as a bundle of risks and rewards. Our meetings at the major conferences are open to guests, and we encourage you to stop by and visit with us. The risk: we may ask you to jump in and help out with our various projects. The reward: you may have the privilege of jumping in to help out with our various projects. We look forward to working with you. This article was prepared by Alex Moss, Chair of the Ownership Culture Committee. The author gratefully acknowledges the contributions of the Ownership Culture Committee, and particularly the efforts of our former Chair, Loren Rodgers of Ownership Associates, Inc., in preparing our Committee s Mission Statement, which is the foundation for this article. Alexander P. Moss is a Principal with Praxis Consulting Group, Philadelphia, PA. He is a recognized expert in employee ownership leadership development, education, business literacy, employee involvement, and related fields. Alex also serves as a Trustee of the ESOP Association s Employee Ownership Foundation, and as a Board Member of the National Center for Employee Ownership. Praxis is an organizational development consulting firm and is and one of the leading consultants specializing in developing high performance ownership cultures. Since 1988, Praxis has been advising clients in harnessing the power of employee ownership to drive organizational success.

5 2. Distribute supporting educational information with ESOP statements and announcements. 3. Hold brown bag seminars and other open forums for dissemination of ESOPrelated information. 4. Create, maintain, and post on the Intranet a collection of questions and answers and other related information about the ESOP (an ESOP FAQ). 5. Design an educational plan and packet for all owners. B. Educate staff about employee-owner culture. 1. Continuously teach the importance of being an owner and its impact on the company s future success and profitability. 2. Communicate the privileges and responsibilities of being an employee-owner. a. Meet individually with projects and groups to discuss the concept of being an employee-owner. b. Hold brown bag seminars and other open forums to discuss the employee-owner culture. 3. Identify and use outside resources to educate SSS about employee-ownership issues. a. Tap the resources of ESOP specialty companies. b. Send staff to the national and regional ESOP events. c. Establish SSS as a leader in the ESOP movement. d. Use our ESOP-related material to win the AACE award. 4. Meet with new employees at key times to educate and encourage ownership behavior. a. Thirty days after date of hire. b. After 1,000 hours of employment. c. At monthly or quarterly lunches with the president for new employees. 5. Educate all employees about how to pursue new business. C. Conduct activities and events that promote an employee-owner culture. 1. Obtain feedback on ESOP issues and other employee-owner needs. 2. Identify and publicize owner participation in community events. 3. Provide additional channels that allow employee-owners to communicate across projects and levels. 4. Organize an annual employee-owner s celebration. 5. Organize events celebrating employee-ownership month. D. Recognize, celebrate, and reward owners when they behave like owners. 1. Recognize employees who a. Identify new business opportunities. b. Recruit new and talented staff. c. Suggest improved or more efficient ways of accomplishing our jobs. 2. Reward owners who become employee-owner leaders and role models a. Exceptional Performance Awards. b. Descriptions of contributions in newsletter and the Intranet.

6 Ownership Advantage Column SSS s Employee Owners Communication Committee Charter [Publisher s Note: Following is the charter for the Bethesda, Maryland company Social & Scientific Systems, Inc. s employee communication s committee. The company known as 3-S, or SSS, provides technical and information support to public and private sector clients, especially in health-related areas. Other companies might call the group its ESOP advisory committee. No matter what the name, it is always good policy and practice to spell out what the mission, role, and objectives are of an employee-owner group set to help foster a better appreciation of ownership through an ESOP. The SSS s charter provides a good example, and is set forth below in its entirety.]. [Editor s Note: This article originally ran in the October 2000 ESOP Report. Due to its timely subject matter, it is being reprinted in the June/July ESOP Report Magazine.] Mission: Foster an employee-ownership culture at SSS and serve as an advocate for the concerns, issues and needs of all employee-owners. The Employee-Owners Communications Committee is responsible for communicating information about the ESOP and promoting an employee-ownership culture at SSS. Membership in this committee is currently open to any staff interested in meeting these goals. In the future, committee members will be selected by all employee-owners through elections or other accepted democratic process. At the present time, the Committee has two chairs: one from the HQ site and one from the Executive Blvd. site. The Committee has a corporate liaison, a vice president who will ensure quality communications between the committee and corporate management. The Committee also has a coordinator who will be responsible for the committee s logistical requirements. Committee meetings will be held monthly, alternating between the two sites. The goals of the Employee-Owners Communications Committee are the same as the company s strategic plan goals regarding employee ownership. These goals, Section IV of the Strategic Plan, are attached. The Committee has been instrumental in drafting these goals with the Planning and Advisory (P&A) Committee. The Employee-Owners Communications Committee itself will take direct responsibility for achieving some of the goals and will cooperate with the P&A Committee and other SSS managers to achieve the other goals. IV. Foster an Employee-Ownership Culture at SSS A. Educate all owners about the ESOP Plan. 1. Facilitate open lines of communication between the plan trustees and employee-owners.

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