Employees as Stake-Holders

Posted by Tom on October 7th, 2005

Lynn Stoddard, author of Educating for Human Greatness, presented to the State Board of Education today. He touched on a thought that intrigued me. My interpretation was that in order to achieve maximum productivity from employees at all levels, instead of directing all employee activities, companies should instead ask the question, “What actions will you take to help us achieve our mission?”

He referred to the work of W. Edwards Deming, who suggested American auto makers consider the suggestions of assembly line workers to improve quality and efficiency. The idea was slow to catch on here, but was embraced in Japan, and led to their explosive growth and reputation for quality.

Stoddard also used the Utah Highway Patrol as an example, quoting multiple managers who experienced not only increased productivity in traditional areas, but also significant creativity and enthusiasm in growing programs with marked, repeated success. (Unfortunately, I didn’t note the specifics he cited.)

As I look back on my work experience, I believe the times I felt the most productive were the times when I was given the latitude to explore new paths and extend my own skills. In my first computer job (technical support), I spent my spare moments learning programming and SQL, which eventually led to a training program which we used for several years. Later as a supervisor for the same organization, one of my employees chose to rework the application morphing it into a larger web-based application.

This is the model Google uses when they ask their developers to devote 20% of their time to personal projects. I also believe it ties closely with Covey’s admonition to “Sharpen the Saw.” (Habit seven in The Seven Habits of Highly Effective People.)

It’s no secret that employees are more productive when they believe in what they’re working for. Asking, “What actions will you take to help us achieve our mission?” is an affective way of making employees’ objectives align with those of management, and makes them stake-holders in success.

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One Response to “Employees as Stake-Holders”

I agree, though I think more work is needed by management to create a system that allows employees to take more responsibility effectively.

I wrote recently on Deming’s view of the Purpose of an Organization. For more on Deming’s thoughts see Deming on Managment