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Episode 17Leadership & Culture

Building A Team of Owners with Mike Michalowicz

February 22, 2022
Featuring Mike Michalowicz
Maximum Octane
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About This Episode

There is a subtle but powerful difference between owning something and being responsible for it. People take care of what they own far better than what they are held accountable for. That applies to a gas pump or a tire rack, and it applies to something intangible like customer service.

In episode 17 of Maximum Octane, Kim Hickey welcomes Mike Michalowicz, author of Profit First, Clockwork, Fix This Next, and several other popular business books. Mike shares the story of King’s Smokehouse, a barbecue restaurant in Hunt, Texas, where giving employees ownership transformed the business. He explains how to offer ownership the right way and how to turn a business weakness into a strength.

What You Will Learn

  • Joel’s fountain. How giving ownership started at King’s (7:10)
  • Small things first, and then the rest. How to properly offer ownership to our teams (11:03)
  • The differences between being responsible for something, and ownership (13:30)
  • Another Brady Bunch reference. How to turn a disadvantage into a strength (16:33)

The Story of King’s Smokehouse

Mike tells the story of Steven King, owner of King’s Smokehouse, a barbecue restaurant about two hours from San Antonio. Steven discovered that when employees were given ownership over specific parts of the business, their care and commitment changed dramatically. The episode’s “Joel’s fountain” story shows how it began with one employee taking ownership of one small thing.

The lesson travels well. A repair shop has dozens of “fountains”: the waiting room, the parts room, the shop vehicles, the alignment rack, the follow-up calls. Each one can have an owner.

What makes the story powerful is how ordinary the starting point was. Ownership did not begin with a grand restructuring or profit-sharing plan. It began with one employee caring for one feature of the restaurant as if it were their own. When others saw the pride and results, they wanted ownership of something too. That kind of organic spread is how culture changes in small businesses: one visible example at a time.

For shop owners, the lesson is that you do not need a formal program to start. Pick one area that matters to customers or the team, invite someone to own it, and celebrate the results publicly.

Ownership vs. Responsibility

Around the 13 minute mark, Mike explains the difference between responsibility and ownership. Responsibility is assigned from the outside. It often feels like a burden, and people do the minimum to avoid getting in trouble. Ownership is felt from the inside. When someone owns an outcome, they think about it, improve it, and protect it without being told.

This aligns with the internal customer philosophy behind Maximum Octane. ATI’s Accountability Is Not a Four-Letter Word and The Accountability Myth explore how accountability works best when people feel ownership.

Psychologists describe a related idea called “psychological ownership,” the feeling that something is “mine” even when a person does not legally own it. Research on this concept suggests that people who feel ownership over their work or workplace tend to show more commitment, take more initiative, and go beyond their job descriptions. Leaders can encourage that feeling by giving people control over decisions, involving them in planning, and letting them see the results of their efforts.

Responsibility without ownership, by contrast, often produces compliance. People do what is required to avoid blame, but they rarely look for ways to improve. The difference shows up in small details, like whether someone notices a burned-out light in the lobby or walks past it.

In practical terms, the shift from responsibility to ownership often comes down to who makes decisions. If an employee must ask permission for every small change in their area, they feel responsible but not empowered. Giving them a defined budget, the authority to adjust a process, or the final say on how their area is organized sends a clear message that the outcome belongs to them.

Start Small, Then Expand

Mike’s advice on offering ownership is clear: start with small things first. Giving someone ownership of an entire department before they have shown they can own a single process sets them up to fail. Begin with something specific and visible, let the person succeed, recognize it, and then expand.

Here is how a shop might apply that:

  • Give a technician ownership of the cleanliness and organization of a specific bay or tool area.
  • Give a lube tech ownership of the courtesy inspection checklist and its accuracy.
  • Give an advisor ownership of the follow-up call process and its results.
  • As each person succeeds, add ownership of a larger area or metric.

Mike’s book Clockwork goes deeper on designing a business that runs itself, and you can learn more on his books page.

Starting small also lets leaders learn how each person handles ownership. Some people embrace it immediately and quickly ask for more. Others need encouragement and reassurance that mistakes will be treated as learning opportunities. By observing how people handle small areas, owners can make better decisions about who is ready for bigger responsibilities, such as leading a team or managing a key process.

It also helps to define ownership clearly. Write down what the person owns, what success looks like, what resources they have, and how often you will check in. Clarity prevents misunderstandings and makes it easier to recognize success.

Over time, small areas of ownership can grow into significant leadership roles. The technician who first owned the cleanliness of a bay may later own the shop’s tool program, then the training of new technicians. Each step builds confidence and skill, creating a natural path to leadership.

Turning a Disadvantage Into a Strength

With another Brady Bunch reference, Mike discusses how to deal with perceived weaknesses in a business. Rather than hiding a weakness, smart owners can reposition it. A small shop can emphasize personal attention. A shop in a hard-to-find location can become a destination. A higher price can signal higher quality. The key is to look at your weakness from your ideal customer’s perspective and ask how it might actually serve them.

ATI explores a similar idea in How to Excel as an Expensive Shop Without Having to Discount.

Repositioning a weakness requires honesty and creativity. Start by listing what customers might see as drawbacks: limited hours, a small waiting area, higher prices, an older building, or a location off the main road. Then ask what kind of customer might see each one as an advantage or not care at all. A small shop can promise that customers will always talk to the same advisor. A higher-priced shop can emphasize premium parts and longer warranties. An out-of-the-way location can offer shuttle service and become known for convenience despite the distance.

Marketing built on honest repositioning feels authentic because it does not hide the weakness. It reframes it in terms that matter to the right customers.

Profit First for Auto Repair Shops

Although this episode focuses on ownership, many shop owners know Mike best for Profit First, his cash management system that sets aside profit before paying expenses. ATI has partnered with Profit First Professionals to bring certified Profit First consulting to members, and you can read about it in Profit First in Your Automotive Repair Shop. Ron Saharyan also covers the approach in Why Aiming for Profit Will Help You Put People First.

Mike’s books share a common thread: small businesses thrive when owners build simple systems that work even when they are busy. Profit First creates a cash system. Clockwork focuses on designing a business that runs without the owner. Fix This Next helps owners identify the most important problem to solve at any given time. Together, they provide a practical toolkit for owners who want to build a business, not just a job.

Ownership and Accountability Work Together

Some owners worry that giving employees ownership means losing accountability. In practice, the opposite tends to happen. When people own an area, they become accountable to themselves and their teammates, not just the boss. They notice problems sooner, fix them faster, and take pride in the results. The owner’s role shifts from enforcing rules to supporting people and recognizing their contributions.

That does not mean anything goes. Ownership works best with clear standards and regular check-ins. If an area slips, the conversation focuses on what support the owner needs rather than blame. Over time, a team of owners becomes self-correcting, which is exactly the kind of business Mike describes in his books: one that grows without depending on the founder for every decision.

ATI’s How to Get More Buy-In at Your Shop offers more ways to build that commitment.

Common Mistakes When Giving Ownership

Ownership can backfire when it is handled poorly. The most common mistake is giving someone ownership in name only, then overruling their decisions or redoing their work. That quickly teaches people that ownership is just another word for extra tasks. Another is handing off an area without the training, time, or resources to manage it well, which sets the person up to fail.

Owners also sometimes forget to recognize results. If a technician transforms the parts room and no one notices, the motivation to keep it that way fades. Finally, ownership should be offered, not forced. Inviting someone who has shown interest tends to work far better than assigning an area to a person who never wanted it.

How to Build a Team of Owners

  • List every area of your shop that currently has no clear owner.
  • Pick one small area and offer ownership to someone who has shown interest.
  • Define what “great” looks like, then step back and let them run it.
  • Recognize improvements publicly so others want ownership too.
  • Write down one perceived weakness of your shop and brainstorm how to make it a strength.

Matt Barnes shows how empowered employees boost revenue in How Empowering Internal Customers Can Increase Revenue.

Frequently Asked Questions

What is the difference between ownership and responsibility at work?

Responsibility is assigned by someone else and is usually measured by whether the minimum gets done. Ownership is felt by the person doing the work. An owner cares about the outcome, notices problems early, and looks for ways to improve without being asked. Leaders can encourage ownership by giving people real authority over a defined area, involving them in decisions, and recognizing the results they create.

How do I get employees to take ownership in my repair shop?

Start small. Choose a specific, visible area, such as a bay, the waiting room, or the follow-up call process, and invite someone interested to own it. Define what great looks like, give them the authority and tools to manage it, and then step back. Check in regularly, celebrate improvements publicly, and expand their ownership as they succeed. Other employees will often ask for their own areas once they see the pride it creates.

Which Mike Michalowicz book should a shop owner read first?

It depends on the most pressing problem. Owners struggling with cash flow and profitability often start with Profit First, which explains how to set aside profit before paying expenses. Owners who feel trapped working in the business may benefit most from Clockwork, which focuses on designing a business that runs without constant owner involvement. Fix This Next helps owners identify which problem to address first when everything feels urgent.

How can a small auto shop turn a weakness into a strength?

List the things customers might see as drawbacks, such as size, location, hours, or price. Then look at each one from your ideal customer’s perspective and ask how it might benefit them. A small shop can promise personal attention and the same advisor every visit. A higher price can be tied to better parts, warranties, and training. Honest repositioning works best when the shop truly delivers on the promise it makes.

Does giving employees ownership mean giving up control?

No. Ownership works best with clear standards, defined boundaries, and regular check-ins. The owner still sets the vision and expectations, while the employee decides how to meet them within their area. In many shops, this actually increases control over results, because more people are watching quality and solving problems. The owner’s role shifts from supervising every detail to coaching people and supporting their success.

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Maximum Octane brings together decades of automotive coaching, repair-facility management, marketing, and business leadership experience. Kim and Hunter focus each conversation on the real decisions shop owners face, from people and operations to profitability, leadership, customer experience, and sustainable growth.

Kim Hickey

Kim Hickey

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Kim brings more than three decades of automotive experience to conversations about leadership, financial performance, operations, people, and building a stronger business.

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Hunter Crane

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Hunter combines a decade of marketing experience with firsthand automotive industry knowledge, helping shop owners connect growth strategies to real business results.

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