The Level 5 Ownership

Leaders are often called upon to resolve conflicts and problems. During this process, we all experience varying degrees of ownership from the people involved. The level of ownership significantly affects how we problem-solve with these individuals and the effectiveness of our efforts.

However, ownership is a concept that is often talked about but less understood. Below are five levels of ownership that will help leaders understand the differences.

Level 1: Lack of ownership

Response: “This is not my fault. I did what I was told to do.”

At this level, the person involved will actively distance themselves from the issue, fearing criticism or negative reflections on their performance review. The effort is focused on rationalizing their actions and explaining to others how they were not part of the problem.

The problem with this approach is that while the person may believe they are “safe” by doing this, it creates more doubt in others, especially among team members. It also results in a significant loss of social capital and reflects poorly on their character.

Level 2: Owning intent

Response: “My intent was good, so even if my actions weren’t ideal, I’m not responsible as it came from good intentions.”

This level is typically seen among young adults who have experienced social conflicts and have learned that they will be held accountable for problems. Conveying good intent is important to justify their positions and seemingly wrongdoings.

The problem is that even if the intent was good, if the actions do not align with the intent, people will ultimately remember the decisions and actions. Unless corrective actions are taken in the future, social capital will be lost at this level.

Level 3: Owning actions

Response: “My intent and actions were good, so even if the outcome isn’t good, I did my best, so I’m not responsible, as results were out of my hands.”

This level is commonly seen among working professionals where their managers hold them accountable for activities and “deliverables.” In business cultures that value hard work, focus on target dates, and celebrate launches, this may seem normal and harmless.

The problem is that even if the individual believes they did everything right, if they do not deliver on the outcomes, all recognitions of the actions taken can feel like patting each other on the back. The learning at this level is often limited to “we just have to try harder next time” or blaming the “environment” for missing the target.

Level 4: Owning outcomes

Response: “Although my intent and actions were good, the outcome wasn’t, therefore I am responsible.”

This level is sometimes seen among experienced professionals and seasoned leaders. They realize that owning actions is not enough and that they must ultimately deliver on their outcomes. They track the results as often as possible and course-correct their actions in real-time to change the trajectory of their results. They understand that unless they meet or exceed their outcomes, it is only a matter of time before they are held accountable or replaced.

The only minor issue at this level is that even if the individual succeeds, if their team still misses their goals, they are not winning as a whole.

Level 5: Owning collective outcomes

Response: “Although my intent, actions, and outcome I was personally responsible for were good, our team failed to deliver on the mission, so I ultimately feel responsible for our team. I believe there were ways I could have done things differently or even better to help our team succeed.”

This level is a rare quality even among seasoned leaders. They not only own their personal outcomes and the team they manage, but they expand their responsibility to their peers and the organization they are part of. They understand that unless their team and organization win, they are not truly winning. As a result, they mobilize their resources and efforts beyond their current roles and responsibilities to help elevate the people and teams around them.

At this level, the person takes ownership of not only their own actions and outcomes, but also the collective success of their team and organization. They are willing to go above and beyond to help their team and organization succeed and are not afraid to take on additional responsibility to make it happen.

What’s next?

Understanding these five levels of ownership will help leaders identify where they and their team members fall and make the necessary changes to improve. By moving up the levels of ownership, leaders will be able to take on more responsibility and drive better results for themselves, their teams, and their organizations.

Remember, owning the problem does not mean that you are solely responsible for fixing it. It means that you are willing to take on the challenge and do what it takes to find a solution, even if it means seeking help from others. Taking ownership allows you to be proactive in addressing issues, rather than reacting to them after the fact.

Leaders who embrace ownership create a culture of accountability and responsibility, leading to better outcomes and a more cohesive team. So the next time you face a problem, ask yourself: what level of ownership am I taking?

Entrepreneur’s Flywheel

Flywheel is a relatively straightforward concept to understand, but still worth reading this book for more practical tips when you’re drafting your flywheels.

Below is an example of a high-level flywheel crafted for entrepreneurs. The inner loop is when founders start a company themselves to solve a big problem and create value.

<Entrepreneur’s Flywheel>
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Scaling Leadership through Two Management Frameworks

As an organization reaches certain scale, it is inevitable, at least due to the current limitation set by human interaction mechanisms (e.g. verbal communication, synchronous meetings, groups, hierarchies, physically independent) that there is a certain level of structure that needs to be put in place to manage the organization.

There is a few frameworks that can be useful when scaling the leadership. It’s local applications of the general management frameworks, so let’s explore how they can be relevant to scaling leadership.

1. Convergence <> Divergence framework

This framework demonstrates how to navigate within the horizontal layer (x-axis) of management.

As your organization scales, one thing you constantly run into is the overall increase in diversity within the organization. The proportion of diversity may increase or decrease, but the absolute number of diverse entity (in this case, employees) will simply increase as your headcount grows.

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Situational Leadership Matrix (Simplified version)

After managing different teams of various background and scale over the years, I’ve always thought the question “what is your leadership style?” is almost a trick question. An executive from another company once shared with me a framework he learned at one of the leadership classes he took at Harvard.

It seems like the original version of Situational Leadership is a bit more complex, but the simplified version he shared made more sense to me and felt more applicable to everyday managers.

Continue reading “Situational Leadership Matrix (Simplified version)”

Lecture 20 – Later-stage Advice (Sam Altman)

Sam caps off the How to Start a Startup series with things you should ignore when you start, but become important a year in. Thanks for watching How to Start a Startup. Hope you learned a ton!

Lecture 19 – Sales and Marketing; How to Talk to Investors (Tyler Bosmeny; YC Partners)

Tyler Bosmeny, founder and CEO of Clever, starts off today’s lecture with an overview of the Sales Funnel, and how to get to your first $1 Million.

Michael Seibel, founder of Justin.tv and Socialcam and Partner at Y Combinator, then goes over how to talk to investors – the pitch.

Dalton Caldwell, founder of imeem and App.net and Partner at Y Combiantor, and Qasar Younis, founder of Talkbin and Partner at Y Combinator, then perform an investor meeting roleplay to give you a taste of how it actually might look behind the scenes.

Three segments in today’s lecture – Lecture 19 of How to Start a Startup.

Lecture 18 – Legal and Accounting Basics for Startups (Kirsty Nathoo, Carolynn Levy)

There’s a lot that goes behind the scenes in running a startup. Getting the legal, finance (equity allocation, vesting), accounting, and other overhead right will save you a lot of pain in the long run. Kirsty Nathoo, CFO at Y Combinator, and Carolynn Levy, General Counsel at Y Combinator, cover these very important topics, in Lecture 18 of How to Start a Startup.

Lecture 17 – How to Design Hardware Products (Hosain Rahman)

In Lecture 17 of How to Start a Startup, Hosain Rahman, CEO and Founder of Jawbone, covers the design process for building hardware products users love.

Lecture 16 – How to Run a User Interview (Emmett Shear)

What can you learn by talking to users that you can’t learn by looking at data? What questions should you ask? How can user interviews define or redefine your product goals? Emmett Shear, Founder and CEO of Justin.tv and Twitch, gives us his take – How to Run a User Interview – in Lecture 16 of How to Start a Startup.

Lecture 15 – How to Manage (Ben Horowitz)

Ben Horowitz, founder of Andreessen Horowitz, drills into the one management concept that CEOs mess up most – understanding how your decisions impact others, the company, and its culture, in Lecture 15 of How to Start a Startup.

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