Barry Blamire: All pull together for a better way of doing business

LATELY, there has been much talk in the media, and among politicians, of creating more employee-owned companies across the UK.

Every business is different, and each has its own way of operating. Here at John Lewis, we have found a model that works for us.

The concept dates back to 1925, when John Spedan Lewis, son of the original John Lewis, was recuperating from a riding accident and had plenty time to think.

He began to consider it unjust that he, his father and his brother took much more out of the business than its employees, so he contemplated a different way of doing things.

A trust settlement was established in 1929 and from that point profits were made available for distribution among the company’s partners (employees), and who were also awarded the rights and responsibilities of ownership, through active involvement in the business.

For this company, this method of operating helps to boost the working culture and enhance the shopping experience for our customers. The partners share the responsibilities of ownership as well as its rewards, profit, knowledge and power. Because shareholders are effectively employees, we can take a long-term view of the business, ensuring we’re investing in the future by making it more resilient and robust.

Every year, when the John Lewis Partnership announces its results, partners are awarded a bonus based on the company’s performance.

This might mean that they can enjoy a summer holiday or a family wedding – the annual ceremonies that reveal the bonuses are a great lift to our staff.

We appreciate that businesses come in different shapes and sizes. Today, we’re delighted to be hosting an event with Co-operative Development Scotland to explore these ideas further for those who are interested.

I’ve been fortunate enough to spend my entire working life with the John Lewis Partnership, starting as a graduate trainee on the shop floor in Newcastle.

In those 16 years, I’ve been part of a formula that offers a different way of doing business and, for me, a better way of doing business.

• Barry Blamire is managing director of John Lewis Edinburgh