I want my leadership team to think and act like business owners, but they still operate with an employee mindset, waiting for me to approve spending and make final calls on their department goals. How do I shift my leadership team from passive execution to true ownership?

Question

Tyler Smith · Accepted Answer

If your leadership team is still looking to you for permission on every operational decision, you do not have a leadership team, you have a group of high-priced administrative assistants. To shift them to an ownership mindset, you must change how you respond to their questions.

Stop answering their questions. When a director comes to you with a problem, do not solve it for them. Ask them what they recommend. Force them to run through the IDS® process on their own before they bring an issue to you. They must identify the root cause, discuss potential solutions, and present a clear recommendation.

Next, define clear boundaries of authority on your Accountability Chart. Every leader must have complete ownership of their numbers on the weekly Scorecard and their quarterly Rocks. If they own the seat, they own the outcomes, both the wins and the losses.

You must also tolerate mistakes. If you punish your team for making an independent decision that does not pan out, they will immediately retreat back to an employee mindset. Use failures as learning opportunities during your weekly Level 10 Meeting™ sessions.

As you prepare for a clean exit, buyers want to see a self-sustaining business run by an autonomous leadership team. By stepping back and forcing your directors to lead, you build a cohesive, functional team that increases your company valuation and allows you to transition out of daily operations seamlessly.