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This is the sense of responsibility and personal connection that individuals feel toward key organizational initiatives, decisions, or outcomes.

When your workforce experiences an intense sense of ownership, they feel invested in the success of their work and accountable for results. This leads to higher motivation, engagement, and willingness to put in extra effort.

Psychological ownership is a critical concept for organizations to understand if they want to be successful, especially in times of constant change. When employees experience a strong sense of psychological ownership towards their work and company, it leads to higher levels of engagement, motivation, accountability, and commitment to achieving shared goals.

There are several key reasons why cultivating psychological ownership is so important:

By making psychological ownership a priority, companies can unlock discretionary effort, resilience, and agility in their workforce—critical capabilities for thriving in times of constant change. Nurturing this sense of possession and stewardship should be a key focus area for leaders seeking to build an engaged, empowered workforce.

For more detailed information about them, check Enterprise Agility Fundamentals, Chapter 6, page 216.

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