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 Oxford 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 •Waitrose - 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 .