Tuesday, 20 November 2012

Employee Ownership Association conference 2012

At Cullinan Studio we have shared the ownership since 1965. This has had the invaluable benefit of a low turn over of people, meaning we retain  our knowledge and experience of projects and construction methods. It also keeps us adaptable to our clients needs. 

Cullinan Studio is a member of the Employee Ownership Organisation, (EOA), Roddy, Kristina and I attended their annual conference in Birmingham last Thursday.


Simon Fowler, Chair of the EOA and MD of John Lewis Oxford Street introduced the conference inviting Iain Hasdell, chief exec of the EOA. Iain made the strong point that the Chancellor "should be ashamed of himself" for looking to remove the rights to maternity, redundancy, unfair dismissal in exchange for share incentives, which he felt confused the benefits of an employee owned company to irrevocable undermining of an employees rights. It also ignored all the advice the EOA had given to HM Treasury.


He went on to note that the number of businesses joining the EOA has grown by 10%, and that EOA companies should strive to provide 10% of UK GDP.


Graeme Nuttall of Field Fisher Waterhouse then gave an address. he had been responsible for producing "Sharing success - The Nuttall review of Employee Ownership" for the Government. He noted Employee ownership is now government policy and advocated each member there yesterday should get our voice out into the local community on the benefits of employee ownership.


We then went to various seminars throughout the day. A highlight for me was hearing Ali Parsa, chief exec of Circle Health.


He noted great companies succeed due to their values rather than their products. Sony was started on a shoestring after the war, their vision was to use Japanese skills "to solve the problems of the world". They therefore had a dream rather than a business plan, which excites people and carries the employees along. Any business should be about satisfying the customers not shareholders and giving a better service than your competitors.


He also noted that if you want to do something amazing you need to persuade others to help, but they need control of what they do; to make them feel they matter. The opposite of ‘great’ is ‘good’ and to achieve great things needs ambition. At Circle they asked the 1700 staff of Hinchingbrooke hospital to write the business plan which the board at the time laughed at but they got 1200 responses.


A vision needs to state three things; what do we want to achieve, how do we get there and what are the barriers to achieving it. Employees also want three things to feel they have a say in the running of a business: autonomy, complexity and a link between effort and reward.


Other thoughts he shared were that in Germany approx 40% of companies are employee owned, and that the UK economy should move to a mass ownership of enterprise rather housing as is currently the case.
             

The event closed with a rousing clarion call from George Thomson, General Secretary of the Post Office, to make a transformation of society through employee ownership. He described it as the 'middle way'  - between UK PLC where everyone works for the benefit of the few, and the Unions who have had to fight back for workers rights. Echoing Corey Rosen earlier in the day, he said Employee Ownership makes people happier at their work while making their company more prosperous.
           

What's to lose?

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