One of the questions CEOs, business owners, and leaders ask is “How can I get employees to act like owners?” To put it in somewhat simplistic terms, the answer is to treat them like owners. No question about it: the experience of being an owner is different from the experience of being an employee. But a well-run company creates an ownership culture, which can come pretty close to closing the gap between the two types of experiences.

Most of us have probably done business with companies that instill that sense of ownership as well as with those that don’t. Here are two personal examples:

• Example 1: I was hungry and really wanted something from a take-out place that was located about 10 minutes from where I lived at the time. It was 8:35 p.m. and the restaurant was open until 9 p.m. I pulled into the parking lot at about 8:45 p.m. When I got to the door I noticed it was locked and the two employees had the chairs on the tables and were cleaning up. Checking my watch and noting the hours on the door I knew I was there in time. I knocked softly. Then I knocked louder. I felt the workers could hear me, but they kept cleaning. So I drove home.
• Because many of these stores are independently owned franchises, I know this experience may be an exception rather than the norm. However, I have never been back to that restaurant. My thinking: if the owner had been there, the door would have been open and I would have received my meal. Owners want to make customers happy.
• Example 2: My wife, daughter, and I were driving home from a football game. It was about 8:55 p.m. and we realized we did not have much at home to eat, so we decided to find a spot. My daughter mentioned a restaurant that premakes pizzas to cook at home. Seeing the time, I said I doubt they can make us one, however, let’s stop and see. When we walked in, I saw that the owner wasn’t there. I apologized for getting there so near closing time and said, “I understand if we are too late.” The employees on duty quickly said, “Not at all . . . what can we get you?”
• While we were waiting, two more customers came in and they also got served. I was impressed. While serving customers who came in late may have cost a bit of overtime, no doubt the revenue covered the expenses. The pizza was great and we have gone back to this restaurant at other times and have shared the positive experience with others. Clearly, this business owner had created a culture of ownership.

There is a stark contrast between the mind-sets of these two sets of employees. I sometimes share these examples when speaking with organizations on the difference between “renting” and “owning.”

During such sessions I’ll ask: “Who currently rents where they live?” When someone in the crowd raises their hand, I will ask them a few questions:

• How much was the property you rent bought for?
• How much are the mortgage payments?
• How long is the mortgage?
• What is the interest rate?
• What does the landlord pay in taxes?

As one might expect, the person typically can’t answer any of these questions. Why? Because landlords don’t share that information with renters. This creates a very incomplete picture of the financials involved in property ownership. The same is true in the business world.

Here is the point: if we want employees to act like owners, we must not treat them like renters. Here are some tips that help to create a sense of ownership:

• Be a model owner. Everyone watches you. People will follow your lead. Years ago, I knew the head of a residency program for physicians. He told me he wanted to see how much influence his actions had. Residents would round on patients, either as a group or with the director and other physicians. So the residency director started putting his hand on the patient’s right shoulder as he talked with them. Sure enough, all the residents were soon doing the same. This is not unusual. Model the behavior you are looking for in others, particularly the mind-set. When you show them owner qualities like “every job is your job,” you can get them on board with this thinking, and you can shift a culture very quickly.
• Share the financials. Owners see the financials. Renters don’t. Most times an employee sees the revenue coming in and assumes the owner is making lots of money. Most times employees do not realize the expenses an owner incurs beyond the obvious. They may not understand, for example, why there is no overtime. Or (and this is even worse) they may go to the other extreme and assume the owner/company isn’t doing well. At that point they might look to jump ship or help create rumors that the business is in trouble. This creates even more problems.
• Sharing financials with an explanation creates ownership. People will better understand the decisions you make and will be more likely to cooperate. I learned this when working at a place that was experiencing serious financial challenges. To help the staff realize what was going on, all financials were shared. We showed in black and white what expenses needed to be based on current revenues. Immediately, we had much improved behavior in cost management and service. Later, when I became a president of an organization, I used this experience and shared all financial data with employees.
• Regularly solicit employee input. Share the problems. Let them help set goals. Ask for help in product development, marketing, product selection, and so forth. Owners are involved in the decision-making process. Ask the employees for their insights and opinions on all aspects of operations. In addition to asking basic questions like, “What do you think?” go deeper. Ask “What are the downsides of the idea/product?” “What will it take to be successful?” “What am I missing?”
• If it’s at all feasible to incorporate employee suggestions, it is often good to do so. It shows them that you are serious about wanting their input. Even if you may not agree with every employee every time, it gets important subjects out in the open, which leads to good conversations. And it gets employees in the habit of thinking like owners.
• Have staff weigh in on hiring coworkers. Owners hire. So let the staff hire with you. Involve the employees who will be working with or for a candidate in the interview process. Make sure coworkers, not the owner independently, have the ultimate “yes” or “no” on hiring. Making them part of the selection process creates ownership and makes them feel more responsibility for the new hire’s success as well.
• While business owners may feel the heat to quickly get someone in place, coworkers may be more selective on who will be a good fit. They will not support the hiring of anyone they feel will not pull their own weight. They will even say “let’s wait and work short rather than hire the wrong person.” Employees will also be very helpful to the new person so long as they are part of the hiring decision.
• Be careful not to be a full-time park ranger. What do I mean by this? Basically, insist that people solve their own problems. What I call Park Ranger leadership is the attitude that leaders will swoop down and rescue employees if they get “lost in the wilderness.” This has always been a challenge for companies but as the business world has become more and more complex it just isn’t feasible anymore. It’s not humanly possible for leaders to have all the answers.
• Ask that when employees bring a problem they also bring a solution. Tell them because they are closer to the problem they are well suited to come up with a practical and workable fix. Even if the solution ends up not working, it may be a good starting point, and it will definitely send the message that people own their jobs and the issues that come with them. Soon employees will start to think like entrepreneurs, which frees leaders up to do their own work. When this happens in every department it quickly leads to a more innovative and resilient organization.
• Regularly connect employees back to the why behind their work. This goes deeper than “to make money” or even “to help the company make money.” When the company is stronger, jobs are more secure, which means a better life for workers and their families. And if you take it a step further, the more prosperous workers are, the more it strengthens the entire community. The why also connects to the customer’s quality of life. Employees make life better for customers by preparing a great meal for them, or building a car they’ll love driving, or providing them with an insurance policy that gives them peace of mind for their future.
• The more you can help the employee see and connect emotionally to the role they play in the customer’s life, the more responsible they’ll feel for that customer’s satisfaction and experience. This is what ownership looks like.

My experience is that employees will act like owners when they are treated like owners. CEOs or business owners sometimes worry about taking these steps—especially sharing the financials. Yet, after it is done the response is usually “I wish I had done this sooner.” The fact is that creating and sustaining a culture of ownership creates a better company. It’s just one more step on the journey to making life better for employees, customers, and the community.