Welcome to Seminar LMG1

“How does leadership, management and governance differ in employee owned organisations? What are the specific challenges and opportunities?” Facilitated by: Richard Elsner - Pivotal Moment

Panellists: Peter Holland - OPM Patrick Burns - Prospects

Case Study: Simon Fowler - John Lewis Partnership

Session LMG1 - Three questions

 What is different about leadership, management and governance in an EO company?

 Are distinctive structures, processes and culture required to enable these?

 What principles (or values) are needed to guide behaviour?

The John Lewis Partnership A better way of doing business

Simon Fowler

John Lewis Partnership Street, 1864

John Lewis Partnership Peter Jones, 1928

John Lewis Partnership Origins of the John Lewis Partnership

John Spedan Lewis, 1929

John Lewis Partnership Our Constitution

John Lewis Partnership Our 7 Principles

John Lewis Partnership Our Governance Model

Partners as co-owners

Executive Constitution Owners

Partnership Board Chairman Partnership Council

Divisional Boards Divisional Councils

Senior Managers Regional Forums

Managers Local PartnerVoice

Partner Opinion is Sovereign

John Lewis Partnership Our virtuous circle - Partner > Customer > Profit

Give great leadership & empower Partners with the knowledge and desire to provide outstanding service

Partner

Profit Customer Generate incremental Enable the sales development & profit through of deeper customer greater relationships customer loyalty

John Lewis Partnership The advantages of our business model

No external No conflict of interest shareholders Allows us to be counter intuitive

John Lewis Partnership New Formats, New Places

FLDS SFLDS At home

FLS Food & Home Convenience

John Lewis Partnership John Lewis Partnership

•John Lewis - The UK’s largest & favourite department store

- The UK’s best loved premium supermarket

•44 John Lewis shops and 336 Waitrose shops

•350,000 non food and 16,000 food products in our shops

•93,000 Partners (employees)

•£11bn turnover, £350m profit, £156m shared as 11% bonus (2014/15) John Lewis Partnership 15

“The better any particular Partnership suits some people, the worse will it suit others. The John Lewis Partnership was meant for people who need not only something to live by but something to live for.”

Spedan Lewis, October 1955

John Lewis Partnership Recruitment

It’s as simple as ‘ABC’ ...

Attitude Behaviour Commitment

John Lewis Partnership Introduction

Increase advantage of Partners ‘My Performance’ is about having honest, straightforward and supportive conversations about performance.

Leadership is of vital importance in the Partnership because it determines the results we achieve and because it’s absolutely central to the achievement of our ultimate purpose.

The new Performance Management framework supports our leaders by being clear about the behaviours that we require which, in turn, is essential to our ability to increase the advantage of Partners.

Charlie Mayfield Chairman John Lewis Partnership Partnership and Leadership Behaviours aligned

Partnership Behaviours Leadership Behaviours

 Makes Things Happen  Takes Decisive Action  Sets Vision & Direction  Takes Pride in Ownership  Inspires Ownership

 Deliver Excellent Service  Drives Performance  Works Together  Works Across Boundaries

 Develops Talent  Develops Self and Others  Acts With Courage  Is Open and Adapts to Change  Shows Strategic Agility

John Lewis Partnership John Lewis Partnership Performance Ratings Table

John Lewis Partnership Final Appraisal Rating created from the ‘What’ and the ‘How’

John Lewis Partnership Final Appraisal Rating created from the ‘What’ and the ‘How’

John Lewis Partnership John Lewis Partnership

John Lewis Partnership The John Lewis Partnership A better way of doing business

John Lewis Partnership Questions and Discussion

#EOAConference Thank you Please make your way to the Palace Suite for refreshments