Struck me this morning that this recession may be an an opportunity for a revival/growth of the co-op/partnership model of business.
Two things got me thinking about this:
1. A discussion this morning on Radio 4 about poor service in the hotel industry in this country.
2. My sis who works as a care home inspector talking about poor private providers.
One common factor is the low wages prevalent in both.
When we see the John Lewis Partnership consistently rated as the best retailer, from another sector where low wages are the norm, surely this shows how much more effective and incentivising the co-op/partnership model can be.
I have long wondered why it is not more widespread. Can anyone suggest weaknesses in the model which might explain why it is not more prevalent?
this is just a speculation but could it be that its more profitable for the one starting a business to own most of the share, you get far more in dividends(incorrect spelling?).
another one could be that management could be more difficult with so many people trying to dictate which direction the business should head.
That was my first thought - dilution of the profits of the guys at the top. But, of course, the John Lewis partners are by no means Equal Partners. Are they that much different from normal company employees who have profit share or employee share schemes?Originally Posted by newatheist
Also, do the partners work better, more efficiently, more assiduously than regular employees? I don't know.
It might just be that John Lewis is a well run business.
Any John Lewis people out there?
Also, are there many (any) other businesses that are structured in this way?
Loads...
Engineering Consultancy, Arup is probably familiar to many on here. For more exciting stuff on employee-ownership try this link.
http://www.employeeownership.co.uk/
wow, thats quite impressive. thanks.
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