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:

• It increases people's sense of responsibility and stewardship. Employees who feel a sense of ownership are more likely to take personal responsibility for the success or failure of projects and feel accountable for outcomes. This leads to more proactive efforts to achieve results.
• It boosts motivation and willingness to go the extra mile. When people feel invested in their work, they become intrinsically motivated to put in extra time, effort, and creativity to ensure success. Psychological ownership creates a personal connection to the work.
• It enhances engagement and organizational commitment. Employees with higher psychological ownership feel more connected to the organization's mission and goals. This emotional investment in the company's success keeps them engaged and loyal during challenging times.
• It improves decision-making and problem-solving. Giving employees a sense of ownership over processes and decisions empowers them to actively participate in improving operations. They will also be more committed to implementing changes needed to adapt and innovate.
• It increases organizational citizenship behaviors. Employees who feel their work "belongs" to them are more likely to go above and beyond basic requirements to help team members and the company because they feel personally invested.

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.