I listened to a great podcast of Peter Day’s World of Business Radio 4 programme recently: http://www.bbc.co.uk/programmes/b00nz005. This is all about companies that are owned by their employees. Apparently, such companies consistently outperform their rivals in pure financial terms.
I am sure that the more important measure of success (happiness) is even more weighted towards this business model. For most of us, John Lewis is the best example of this. The podcast mentions the Employee Ownership Association (EOA). Its website has loads of resources and guidance on how and why to go down this path, with some great case studies showing the results.
At K&H, we made everyone a shareholder a year ago, and I think this makes us pretty much unique in the accountancy profession.
I can’t honestly say I have had great success preaching this approach to our clients at K&H, but those who are open to this and have tried at least sharing profits and important information with their team, have certainly been the businesses that have tended to prosper. Perhaps more importantly, they are the businesses where the owners are able to delegate with confidence to a trusted team of employees without the paranoia and insecurity that many owner-dependent business owners seem to carry with them.
I think the employee ownership is the future for all businesses, big and small. Please post a comment and tell me if you agree.