www.ownershipassociates.com© 2003 ownership associates frontiers and boundaries ownership...

www.ownershipassociates.com

© 2003 Ownership Associates

Frontiers and

BoundariesOwnership Associates Tools for

Managing Ownership Expectations



Is there confusion about who does what

at your company?

Frontiers and Boundaries helps you:• Clarify• Communicate• Build Trust• Engage Participation



Here are the tools.

1. Decision Zone Charts (“zone charts”)

2. Training• General or customized for your company• Training for managers, for the work force

3. Frontiers and Boundaries: Advanced Tools

4. Toolkit: Templates and Sample Documents



1.Decision Zone

Charts



The Decision Zone Chart

Decision Zone Charts (“zone charts”) provide a one-page overview of a company’s decision making system.

They focus on a clear description of who has primary responsibility for which decisions.

Zone charts help companies plan, clarify and communicate who is responsible for what.



Sample Zone Chart

Board of Directors

22. Fate of the Company: merger, sale,major location change

21. Selection of Board of Directors

20. Constitutionalism: Setting & MovingDecision-Making Boundaries

19. Corporate Strategy

18. Distribution of Profits (dividends,reinvestment, debt reduction, etc.)

17. Selection and Compensation ofSenior Management

16. Lay-off Policy, Employment Levels

15. Product, Technology, andInvestment Strategy

14. Raising Capital, Relationships withBanks and Investment Groups

13. Marketing & Advertising Strategy

12. Firing

11. Employee Compensation & Benefits

10. Asset Purchases

9. Equipment Layout

8. Promotions, Job Evaluations

7. Hiring

6. Quality Standards and Measurement

5. Safety Rules and Practices

4. Job Assignments

3. Speed of Production

2. Election of Employees’ Committee

1. Physical Working Conditions

CORPORATEPOLICY

Decision Zone Chart

MANAGERIALOPERATIONS

DEPARTMENT /WORKGROUP

LEVEL

Management

Shareholder Voting

WorkTeams

EmployeeParticipation

The Decision Zone Chart is part of Frontiers and Boundaries: Managing OwnershipExpectations, a set of tools and resources to support employee involvement in employee-ownership companies, available exclusively from Ownership Associates. www.ownershipassociates.com

2003 Ownership Associates, Inc., Cambridge, MA.This Decision Zone Chart is the protected intellectual property of Ownership Associates, Inc. It may not be modified, includedin any derivative work, transferred to third parties, or published without the prior written permission of Ownership Associates.



Building Your Own Zone Charts

The Frontiers and Boundaries Handbook provides:

• A step-by-step process to customize Decision Zone Charts for your company

• Maximize buy-in

• Sample meeting agendas

• Highlights of relevant research

OAINC.www.ownershipassociates.com

Frontiers and Boundaries is the intellectual property of Ownership Associates, Cambridge MA.

Use is governed by a license agreement.

OAINC.www.ownershipassociates.com

Frontiers and Boundaries is the intellectual property of Ownership Associates, Cambridge MA.

Use is governed by a license agreement.

Frontiers and Boundaries Handbook:

Mapping Decision-Making Responsibility

A step-by-step guide to clarifying who does what at employee-ownership companies

Inspection copy, printed October 15, 2003.

The Handbook is available for $200.00, exclusively from Ownership Associates.

Learn more on the OA website by visiting the home page for the Handbook.



1 Fate of the Company: merger, sale, etc.

2 Selection of Board of Directors

3 Appointment and Compensation of President

4 Distribution of Profits

5 Selecting and Monitoring Senior Management

6 Senior Management Compensation

7 Capital Improvement (Investment Strategy)

8 Manufacturing Technology

9 Selection of Management

10 Acquisitions / Start Ups

11 Product Development

12 Raising Capital, Rel.'s with Banks, Investors

13 Marketing & Advertising Strategy

14 Employee Compensation

15 Management (Exempt) Hiring

16 Quality of Worklife Issues

17 Communications / Training

18 Allocation of Employee Benefits (Mgt. Budget)

19 Product Pricing

20 Lay-off Policy, Employment Levels

21 Firing

22 Equipment Purchases 23 Wage Changes, Raises

24 Setting Production Standards 25 Equipment Layout

26 Setting Safety Rules and Practices

27 Setting Quality Standards and Measurement

28 Performance Evaluation

29 Promotions 30 Disciplinary Action

31 Hourly (Non-Exempt) Hiring

32 Enforcing Safety Rules and Practices

33 Enforcing Quality Standards and Measurement

34 Determining Work Assignments

35 Formation of Committees

36 Local Work Environment

Employees

Supervisors

Shareholders

Senior Management

Board of Directors

Dept. Managers

President

Sample Decision Chart



2.

Training



Training Options

Frontiers and Boundaries training includes:

• An introduction to the ideas of boundaries and clarity, using zone charts.

• Training for supervisors and middle managers.

• Coaching for senior managers.

• Training to support the adoption of company-specific zone charts.Most training can be delivered by OA or by the

company’s internal trainers.



Sample facilitator manual

Facilitator’s scriptEasy-to-follow directionsPresentation slidesNotesRecommendationsCustomizable



3.Advanced

Tools



Decision Grids communicate the steps and roles involved in making a particular type of decision. While the Decision Zone Charts show the “big picture,” Decision Grids focus on a single type of decision. They show

• who is accountable for the decision, • who should be consulted, • who should be informed,• etc.

The Decision Grids are based on a flexible decision-making model that encourages clarity, information flow, and accountability.

3A. Decision Grid



3B. Decision Reports

Decision Reports summarize all the relevant information about a decision on one sheet of paperUse to communicate

To Recipients of Information, Consulted Parties, etc.

Use for accountability



5.Toolkit:

Templatesand Sample Documents



Ownership Associates can provide ready-to-use templates to make zone charts, decision grids and decision reports look professional.

Samples from other clients can help companies determine how to set up their own zone charts and decision grids.

Templates and Samples



“Everyone appreciates feeling involved and included. And now we have a way to deal systematically with people’s questions and concerns. It’s made a huge difference.”

—Dale Clary, Plant Manager,

Carris / North Carolina

“[Clarifying decision making] puts people more at ease, and we are now getting more input and participation from employees.” — Cynthia Amador,

Director of HR, Caltrol

Quotes from Clients



OA INC.Ownership Associates, Inc.

122 Mt. Auburn Street Harvard Square

Cambridge, MA 02138Tel: (617) 868-4600Fax: (617) 868-7969

[email protected] here for Frontiers and Boundaries on OA’s website

or go to www.ownershipassociates.com and choose “Frontiers and Boundaries” from

QuickLinks.

For more information