Employee ownership + accountability=competitive advantage: Precor drives organizational change

Abstract

PurposeIt is well recognized that fast‐growing companies can outpace their systems and infrastructure. Similarly, rapidly growing companies can outgrow their corporate culture. This case study aims to address training that replaces an established yet outgrown corporate culture with a dynamic culture suitable for the growing organization.Design/methodology/approachGlobal fitness equipment leader Precor has achieved cultural change through a strategy founded in increasing – and rewarding – personal accountability for results. Through training, Precor established direct connections between each employee and the corporation's financial performance. A system of ongoing communications and rewards supports the change over time. The process included institutionalized and depth delivery of company‐wide communications, performance management processes, and reward‐and‐recognition programs.FindingsThrough training, an organization can successfully transition individuals and departments to embrace a culture of personal ownership, accountability and reward. Financial benefits also accrue: since Precor committed to organizational change, corporate revenues have increased by more than 50 percent, and profitability is up more than 200 percent.Practical implicationsManagement can institutionalize a culture of personal ownership and accountability that generates superior financial results.Originality/valueHuman resources and training executives interested in significantly increasing their organization's business results can gain insight into building employee accountability and individual links and ownership of their company's results.