This topic is NOT meant to suggest that owners are superior or preferable to employees.
First, this distinction is based in large part on how people act in response to their natural wiring.
Second, our economy needs far more employees than owners.
My concern is aligning who a person is by nature with where he/she serves within an organization.
Let me suggest what the distinction looks like and then draw four practical applications for you and your organization.
Characteristics of Owners and Employees
Remember, I am interested in both the wiring and positional definitions.
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Owners |
Employees |
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While time may be money, owners know that they cannot be limited by the clock - they must get the job done regardless. |
Employees are paid to work a certain number of hours - they may be loyal and work overtime, but typically expect some form of compensation for additional time. |
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Owners take risk, investing because they believe in the long-term reward potential that comes with ownership. |
Employees appreciate the security of a regular paycheck and benefits. Often they lack the access to capital necessary to take the risk associated with ownership. |
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Owners know there are no guarantees - salaries and benefits exist only as long as the company continues to exist. |
Employees focus on their areas of influence and often take for granted the company's continued existence. |
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Owners see that unlimited upside is possible only in the presence of potential failure - failure that is significant and profound - but they are drawn to the upside nonetheless. |
Employees have a pendulum with a shorter string that limits the range of possibilities. The upside and downside comprise a shorter continuum. |
Practical Applications
1) When you are hiring, be clear up front about your expectations and a person's opportunities - positionally, are you hiring an employee or a part-owner? In terms of wiring, does the person you are hiring think and act like an owner or an employee? Are the two senses properly aligned?
2) Recognize that it is unrealistic, even unreasonable, to expect owners to act as employees and employees to act as owners. It is appropriate for employees to expect some level of security and extra compensation for additional time. It is appropriate for owners to enjoy a greater upside potential and greater autonomy. Keep this in mind when coaching or conducting performance evaluations.
3) Most people are NOT entrepreneurs. I've worked with entrepreneurs who believe anyone can be taught to start his/her own business and grow it successfully. I disagree - most people lack the wiring required to be a successful entrepreneur. They are unwilling to take the risks of starting a company and lack the range of skills necessary to make it grow.
4) Know that some employees are owners at heart - you are teaching them what they need to know to leave and start their own businesses. That's fine - it need not be interpreted as disloyalty. Sometimes it is better to hire an exceptional, self-motivated employee who is an owner at heart and get 3-5 years of excellent work from that person than to hire a loyal, less-motivated employee who stays with you for 20 years. This is especially true of sales positions.
At Julian Consulting, we are here to help you succeed as owner or employee - building on your natural wiring and helping you to align your role with that wiring so you achieve personal success while contributing to the success of the organization.
