Business Ownership - John Lewis considers change to staff-owned structure

The John Lewis Partnership is thinking of changing its much vaunted staff-ownership model. The potential plan, apparently the brainchild of the Chair, Dame Sharon White, is to seek funding for a majority stake to invest in data analysis and Waitrose's supply chain.

It's not guaranteed to take place but the firm are looking for £2bn, although ditching 70 years of history, and the brand image associated with it, might have adverse effects for the business too. You never know perhaps reducing executive pay over the preceding 20 years might have helped...

Please read: John Lewis considers plan to change staff-owned structure (BBC News)

And here's an assessment of the organisational culture of the John Lewis Partnership, with the editor of Retail Gazette identifying it as the key feature of the organisation's identity, and arguing that diluting this is going to have an adverse effect on both productivity and, potentially, revenues.

As she notes, the founder's aim was "not to maximise profits but to generate “sufficient” profit for its purpose" and anything that deviates from that runs the risk of destroying the brand.

A detailed analysis here in the Guardian of the current state of play regarding John Lewis, with the prevailing view seemingly that the company, like many, faces challenging times but different views about how to tackle this.

For many analysts, it seems that the group have rather lost sight of its core business and the move to end staff ownership might damage both staff morale, the brand and remove its USP. However, it's clear that it's in a bind - however, the notion that the company wants to "expand into financial services and build to rent above Waitrose stores", strikes me as singularly unimaginative and redolent of a business in decline.

Watch this space - and see how this story is going to unfold in the months ahead.

The John Lewis Partnership is a unique business model that is owned and operated by its employees, also known as "Partners." The model was founded by John Spedan Lewis in 1929, with the aim of creating a business that prioritizes the happiness and satisfaction of its employees, while still delivering excellent customer service and generating profits.

Under the John Lewis Partnership model, all employees are considered partners in the business, and they all have a say in how the company is run. This means that they have a voice in the decision-making process, and they are all eligible to receive a share of the company's profits each year, which is distributed in the form of an annual bonus.