Journey to an ESOP & Beyond
ESOPs are gaining traction. In the "Journey to an ESOP & Beyond” podcast, Doeren Mayhew's Jason Miller and Makenzie Wirth explain the process of the ESOP transaction and address ESOPs from a business owner's perspective. They illuminate the simplicity of ESOPs and debunk common misconceptions that ESOPs are immensely costly and complicated.
--
“Doeren Mayhew" is the brand name under which Doeren Mayhew Assurance and Doeren Mayhew Advisors, LLC and its subsidiary entities provide professional services. Doeren Mayhew Assurance and Doeren Mayhew Advisors, LLC (and its subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Doeren Mayhew Assurance is a licensed independent CPA firm that provides attest services to its clients, and Doeren Mayhew Advisors, LLC and its subsidiary entities provide tax and business consulting services to their clients. Doeren Mayhew Advisors, LLC, DM Payroll Solutions, Doeren Mayhew Capital Advisors and their subsidiary entities are not licensed CPA firms.
Journey to an ESOP & Beyond
EP8 - How Every Employee Can Create Enterprise Value in an ESOP
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
In this episode, Makenzie Wirth and Jason Miller explore how any employee, regardless of title or department, can help create enterprise value in an employee-owned company. They break down practical strategies to drive growth, increase profitability, and contribute to long-term company value. Whether you’re in sales, accounting, operations, or any other department, learn how your role connects to the bigger financial picture. Discover how ESOP employees can leverage their strengths, act like owners, and impact the company’s bottom line. This conversation will challenge you to think and act like an owner.
How Every Employee Can Create Enterprise Value in an ESOP
Episode Summary
In this episode, Makenzie Wirth and Jason Miller explore how any employee, regardless of title or department, can help create enterprise value in an employee-owned company. They break down practical strategies to drive growth, increase profitability, and contribute to long-term company value. Whether you are in sales, accounting, operations, or any other department, learn how your role connects to the bigger financial picture. Discover how ESOP employees can leverage their strengths, act like owners, and impact the company’s bottom line. This conversation will challenge you to think and act like an owner.
Key Topics Covered
- Creating enterprise value from any role.
- Sales and non-sales contributions to company growth.
- Performance vs. production across departments.
- Service quality and departmental systems impact enterprise value.
- ESOP alignment and ownership mindset.
Transcript
Editorial note: This transcript has been lightly edited for clarity and readability while preserving the original meaning of the conversation.
Introduction & Episode Overview
Makenzie Wirth: Hi, everyone. Welcome back to another episode of Journey to an ESOP & Beyond, where we discuss all things ESOP to provide an accessible and understandable resource. I'm your co-host today, Makenzie Wirth.
Jason Miller: I'm Jason Miller. Today, we will dive into how to create Enterprise Value from any seat and any role within a company.
Makenzie Wirth: Often, when you think of creating Enterprise Value or growth for the company, we immediately think of anyone in a revenue-producing role—maybe that is primarily a sales role. However, every role can create Enterprise Value, even if you are not in a revenue-producing role. What do you think about that, Jason?
Sales & Accounting Perspectives
Jason Miller: This is one of my favorite topics. Makenzie, I’m going to put you on the spot a little bit. As an accountant and experienced CPA, if I told you we were going to talk about sales and that you were going to be selling, what would your gut reaction be?
Makenzie Wirth: Nervous, for sure. That is not why I went into accounting. I think most people know accountants are typically introverts, not exactly the typical salesperson type. So yes, that makes me uncomfortable.
Jason Miller: Let’s talk about those sales personalities. I would venture to say it is at least an 80/20 rule, not a 90/10. But most people have the same reaction if leadership came to them and said, “You now have a sales role.”
Revenue & Value Creation
Jason Miller: Sales does lead to or contribute to value. All of our listeners know that, as business owners, you need revenue and all things related to it. Revenue is the lifeblood of any business. Revenue comes from sales, regardless of the method your business uses. But not everyone is designed to be a salesperson. With that idea of being a producer, the first thing I’d like to say is this: every job is a performance job.
Performance vs. Production
Jason Miller: But every job can also be a producing job, and producing is definitely different from sales, even though cultures often mix those two things up. So, what qualities of a salesperson came to mind when I asked you about that? You mentioned one of the inverses, like accountants are typically introverted.
Makenzie Wirth: I’d say salespeople are typically extroverted. They are outgoing and don’t mind walking into a room of people they don’t know and striking up a conversation. As the primary speakers, those are the qualities that come to mind. Not to mention, the ability to sell, persuade, and negotiate. These elements are key for people with an outsized responsibility for producing new revenue.
Organizational Structure & Sales Support
Jason Miller: Traditionally, organizations are designed to support sales, since selling products or services generates the revenue that supports everyone across the company. I think that is the mindset many people hold. But if you look a little deeper, is it really a two-tier system—where sales comes first and everyone else falls underneath? Or is it something different?
Departmental Systems & Contribution
Makenzie Wirth: I think that is generally fair. Everyone else supports the producer. Using the revenue results, whether in accounting or inventory, they need to manage what is being sold and what sales are coming in. Everything trickles down from the producers in terms of sales. Each department has its own function that must operate optimally. And again, looking at a revenue-centric model, not because every organization is set up that way, but because revenue is the lifeblood, each department must function efficiently.
Creating Enterprise Value Beyond Sales
Makenzie Wirth: This ties into our point that you are not just a salesperson and you are not the only one producing Enterprise Value. While you may be producing an actual sale, others within the company also contribute to the overall Enterprise Value. For example, if your inventory department or manager makes errors, does not have enough inventory on hand, or has obsolete stock, you may create issues that affect whatever gets delivered to the end customer. That, in turn, impacts Enterprise Value. That is why these departmental systems matter.
Service Quality & Reputation
Makenzie Wirth: Beyond the tangible product sold and the systems to ensure execution, consider service quality. If you are in a business where your product is your service, sales are important. But beyond that, what is the quality of service? How does that impact your reputation? All of that drives and contributes to Enterprise Value.
Performance & Efficiency
Jason Miller: I changed my mind before I said anything. Let me back up a little. I was headed in a different direction about a new person starting on day one, and systems/documentation. Here, we are focusing on creating value and where it comes from. Every role is a performance function. Every job is a performance job.
Systems & Documentation
Makenzie Wirth: So, why is that important? We have redefined what it means to produce and how that creates value, especially for growth and scaling.
Onboarding & Knowledge Transfer
Jason Miller: How can you make that person more capable in the role you hired them for with as little friction as possible?
Anticipation as Production
Makenzie Wirth: Our next topic regarding value creation is anticipation as a form of production.
Example: Building a Vision
Jason Miller: I’ll give you an example. We can walk through this together. I want to build a building...
Employee Contribution Across Roles
Jason Miller: Every employee, in every seat across every organization, contributes to Enterprise Value.
Delegation & Scalability
Jason Miller: This allows for delegation, which in turn drives growth.
Enterprise Thinking vs. Task Thinking
Makenzie Wirth: I was going to say that. It’s actually the next phrase, so yes.
Structure & Clarity
Jason Miller: Mental capacity and general overwhelm matter. If every part of your business, every role, is not structured, it adds clutter and slows progress.
ESOP Alignment & Motivation
Jason Miller: That is part of the magic of an ESOP company.
Applying Sales Goals to All Roles
Jason Miller: If you gave every person in your organization a sales goal, you would go back to where we started.
Awareness & Intentionality
Makenzie Wirth: This ties back into intentionality and awareness across all roles.
Summary: Awareness Over Title
Jason Miller: And that is super valuable in an employee-owned company.
Closing & Listener Engagement
Jason Miller: I don’t know that I can take credit for this idea, but over the course of my career, I’ve realized everyone has to perform in their role—everyone has to meet expectations.
Final Takeaways
- Every role contributes to enterprise value, not just sales.
- Performance and anticipation are critical across all functions.
- Departmental systems and service quality directly impact overall value.
- Delegation and structured processes enable scalable growth.
- ESOP alignment fosters an ownership mindset and intentionality.
Resources & Next Steps
- Explore additional Journey to an ESOP & Beyond episodes.
- Interact with the team at www.JourneyToAnESOP.com.
Listen to the Episode
🎧 Journey to an ESOP & Beyond
