Own Ownership

As business owners, we have rights and responsibilities. We are made very aware of our responsibilities. So much so that we sometimes lose sight of our rights.

When we start a business, we take significant risks, make a large investment, make personal sacrifices, and have sleepless nights. When we employ people, we similarly take a risk and make an investment, assuming responsibility to treat employees as we are obliged to by law and as we should if we wish to keep them as employees.

In fulfilling our responsibilities as employers, we sometimes lose sight of the right to operate our business as we see fit for the future of our investment. As owners, we sometimes choose not to make even incremental changes because of the resistance we get or anticipate we will get from our staff. When we started our business, did we anticipate it would be the same forever, or did we expect it would change over time?

“When we started our business, did we anticipate it would be the same in five years, or did we expect it would change over time?”

To an extent, the reluctance to make big sweeping changes to a business is understandable. It is less understandable when the change is relatively minor and incremental.

In this article, we will discuss the difference between our perspective as owners and that of our employees. We will also discuss how we create an environment where incremental change is expected, setting the platform for more significant change.

Your employee has a quite different view of your business than you do as the owner. Sure, they hope the business does sufficiently well that it will continue to employ them, but generally, their view of your business is short-term; payday to payday. So long as you can continue to employ them, the business's profitability is not something that occupies their thoughts. Also, employees are more mobile than owners; when an opportunity arises, they can change employers locally or move elsewhere to take up employment.

On the other hand, business owners are in it for the long haul; our view of our business extends years, not weeks or months. When we make changes in our business, it makes sense to be mindful of any negative feedback, but we must remember we are making changes for a benefit beyond the horizon seen by our staff. Sometimes we will institute change for our benefit as owners, maybe a benefit our staff won’t see immediately or ever see. This is not a reason not to make the change.

An example might be requiring our salespeople to modify their sales process. The salespeople might complain this will take them more time, but you know the business will benefit downstream from their small investment of time. Do we fold at the first sign of resistance, or do we explain why the change is good for the business and proceed with implementing the change?

When we encounter resistance, it will help our resolve if we ask ourselves a couple of questions. First, do our employees often volunteer suggestions to improve the business, or do we only hear from them when they push back? Secondly, when they push back, do they come up with alternative suggestions, or do they just want to stick with the status quo?

“Nobody likes change, and we will resist it where we can. If we don’t overcome this resistance, we will find it challenging to improve our business.”

Nobody likes change, and we will resist it where we can. If we don’t overcome this resistance, we will find it challenging to continually improve our business.

We should create an environment where change is the norm. We should encourage our staff to put forward suggestions and constantly look at our process to see where we can make incremental improvements. Not everything will work, but so long as the change is not being sabotaged, we can always revisit and fine-tune the changes we make. Creating an environment of Kaizen (Toyota’s culture of constant improvement) sets up a platform for larger change.

“Creating an environment of Kaizen (Toyota’s culture of constant improvement) sets up a platform for larger change.”

To be clear, our people are a crucial factor in the success of our business, so I am not suggesting we ignore their feedback; being the business owner doesn’t make us infallible. Give and take is needed, and we should listen to concerns. If we haven’t done so, we should explain the reason for change and the benefit to the business. A helpful strategy is to establish a trial period for a change, maybe three months, at the end of which everyone can contribute to a discussion on how the change has impacted each role, and you can assess whether or not it has achieved your goal.

As responsible employers, we want our staff to be happy in their work, and we don’t want to put obstacles in their path. Equally, we must continually interrogate how we are doing business and take opportunities to improve it. It can feel like a narrow line to walk, but the alternative is a business trapped in time.

Chris Ogden is a consultant and Managing Director of RFMS Australasia (rfmsANZ.com), a supplier of IT solutions specific to the flooring industry. Chris has an extensive background in all aspects of the flooring industry, and he can be contacted at cogden@rfms.com.