We have been highlighting John Templeton’s theory of “Investing the Extra Ounce,” found in his book The Templeton Plan. While much of Templeton’s advice in this book relates to personal success, he touches on management philosophies in this chapter and discusses the importance of praising employees for their hard work which, in his perspective, will encourage them to give an extra ounce of effort in their work.
To make others believers in giving the extra ounce and producing better quality, it’s imperative that you have high team morale. Your staff must be motivated to work together with pleasure and enthusiasm. Contrary to the popular romantic notions about business, the successful executive is not a loner. Give credit and praise to others. Be quick to point out how much help you’ve received from others and what a central role they have played in your accomplishments. Whenever any praise comes to you, that praise is due to all of your fellow associates. Make sure you’re right down in the trenches with them at all times.
In order to promote an attitude of the extra ounce, it has been John Templeton’s practice for more than thirty years to pay employees about 20 percent above the current trade salary levels. That is not the result of kindheartedness, Templeton is quick to point out. Rather, it is his belief that if you pay 20 percent more than normal, you will gradually accumulate a superior team; for 20 percent more money, you will field a team that is 50 percent more effective. “You get what you pay for,’ Templeton says. “The old adage is true.”