Business Lunch Podcast Summary
Episode: Micro Ownership: A New Way to Motivate Employees
Release Date: March 12, 2025
Host: Roland Frasier
Guest: Ryan Dice
Introduction and Topic Overview
In this episode of Business Lunch, host Roland Frasier engages in a dynamic conversation with Ryan Dice about a novel approach to employee motivation known as Micro Ownership. The discussion delves into how this strategy can empower employees by granting them ownership over specific business metrics, thereby fostering an entrepreneurial spirit within organizations.
The Concept of Micro Ownership
Ryan Dice introduces the foundational idea of Micro Ownership, emphasizing its potential to transform employee engagement and drive company profits.
"[...] the micro owner system gives employees direct ownership over specific business metrics, which is part of what they do."
— Ryan Dice [07:17]
He contrasts this with traditional methods like equity distribution and profit sharing, which he and Roland have previously critiqued for their inefficacy in certain business contexts.
"A lot of us do to try to get our people to act more like owners is we give them equity. [...] profit sharing as another way to try to make employees think a little bit more like owners."
— Ryan Dice [06:23]
The Bidding Mechanism: Advantages and Innovations
Ryan outlines the bidding component of Micro Ownership, highlighting its unique approach where teams compete to take ownership of key business metrics.
"Then you essentially let teams bid. [...] have them bid and say, you know, I believe that if we're given this metric that we can achieve this result."
— Ryan Dice [07:17]
Roland Frasier appreciates this innovative aspect, noting its similarity to an entrepreneurial auction where teams propose actionable strategies to improve designated metrics.
"When you kind of go into it a little deeper and talk about the bidding component, I like that a lot."
— Roland Frasier [10:16]
Potential Downsides and Challenges
Despite the enthusiasm, both hosts critically assess possible pitfalls of the Micro Ownership model:
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Risk of Overbidding and Failure:
Ryan raises concerns about the repercussions if a team fails to meet their targets after bidding."There's got to be some type of downside risk or like everybody's just incentivized to bid the most."
— Ryan Dice [11:49] -
Attracting Risk-Friendly Individuals:
Roland points out that the model might favor more risk-tolerant employees, potentially sidelining those who are risk-averse yet highly effective."It's going to perhaps attract in the bidding process the more risk-friendly and disincentivize or not help recognize those who are motivated differently."
— Roland Frasier [10:46] -
Lack of Accountability:
The absence of consequences for unmet targets could lead to disengagement or minimal effort."In this case no downside either."
— Ryan Dice [14:00]
Enhancing the Micro Ownership Model
To address these challenges, Ryan and Roland brainstorm enhancements to ensure the system remains fair and effective:
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Structured Bidding with Hypotheses:
Ryan suggests requiring teams to present a clear hypothesis with actionable steps when bidding."Every bid should essentially be a hypothesis. [...] what are the actions that you're going to take, what is the improvement that you're going to make."
— Ryan Dice [12:23] -
Incorporating Consequences and Accountability:
Roland proposes mechanisms to enforce accountability, such as company-wide consequences if targets aren't met, fostering collective responsibility."You could create pretty significant peer pressure if there was a loss to everyone."
— Roland Frasier [14:11]Additionally, humorous yet motivating consequences like dressing as bananas were discussed to add a light-hearted element to accountability.
"Each member of the team would comprise the bunch and then they have to into a group hug of banana bunching for five minutes."
— Roland Frasier [17:57]
Implementation Strategies
The hosts contemplate practical steps to integrate Micro Ownership into their organizational practices:
-
Pilot Testing:
Ryan recommends initiating the model with a single, high-impact project to gauge its effectiveness before a full-scale rollout."If I was going to roll this out, I would try to have one, like, big project that you really wanted to have fixed and say, hey, there's this one thing that I think is really, really important."
— Ryan Dice [18:08] -
Embedding Entrepreneurial Culture:
The overarching goal is to rejuvenate entrepreneurial energy within scaling companies, addressing the loss of innovative drive that often accompanies growth."I'm trying to think of ways that [...] to inject some entrepreneurial life into companies and also how do we identify those high agency folks."
— Ryan Dice [19:31]
Conclusion and Final Thoughts
As the episode wraps up, Roland Frasier and Ryan Dice express optimism about the potential of Micro Ownership to revitalize employee motivation and identify leadership talent within organizations. They invite listeners to share their feedback and plan to implement and revisit the concept in future discussions.
"Hopefully you guys found this helpful. If you did, please share it. If you got ideas on how to plus it, please let us know."
— Roland Frasier [21:07]
Notable Quotes
- Ryan Dice [07:17]: "The micro owner system gives employees direct ownership over specific business metrics, which is part of what they do."
- Roland Frasier [10:16]: "When you kind of go into it a little deeper and talk about the bidding component, I like that a lot."
- Ryan Dice [12:23]: "Every bid should essentially be a hypothesis. [...] what are the actions that you're going to take, what is the improvement that you're going to make."
- Roland Frasier [14:11]: "You could create pretty significant peer pressure if there was a loss to everyone."
- Ryan Dice [19:31]: "I'm trying to think of ways that [...] to inject some entrepreneurial life into companies and also how do we identify those high agency folks."
Key Takeaways
- Micro Ownership is a strategic approach that assigns specific business metrics to teams, promoting accountability and entrepreneurial behavior without diluting equity.
- The bidding mechanism allows teams to volunteer for metrics they believe they can improve, fostering a competitive yet collaborative environment.
- Potential challenges include the risk of overbidding, lack of accountability, and possible exclusion of risk-averse but valuable employees.
- Enhancements such as structured hypotheses for bids and company-wide consequences for unmet targets can mitigate these challenges.
- Pilot testing the model with a single project can help refine the approach before broader implementation.
This episode provides valuable insights for business leaders seeking innovative methods to motivate employees and enhance organizational performance through shared ownership and accountability.