Businessreign
John Lewis: A Unique Ownership Structure
John Lewis isn't your typical corporation owned by a single entity or a small group of shareholders. It boasts a unique ownership structure that sets it apart from most retail businesses. Here's a breakdown of who owns John Lewis:
The John Lewis Partnership
John Lewis is a subsidiary of the John Lewis Partnership (JLP), a British employee-owned company. Established in 1928, the JLP model emphasizes employee ownership and profit-sharing.
Employee Ownership:
- Over 83,000 John Lewis employees, known as Partners, collectively own the JLP.
- This ownership structure fosters a strong sense of community and shared responsibility within the company.
- Partners directly benefit from the company's success through an annual bonus scheme tied to profits.
Governance:
- The JLP is governed by a democratic structure with a Chairman and a Trusteeship.
- Partners elect representatives to a Partnership Council, which has a say in major decisions.
Benefits of Employee Ownership:
- Motivation: Partners have a vested interest in the company's success, leading to higher employee engagement and motivation.
- Customer Service: Partners often take greater pride in their work and provide exceptional customer service.
- Long-Term Focus: The ownership structure encourages a long-term focus on sustainability and responsible business practices.
Drawbacks of Employee Ownership:
- Decision-Making: Decision-making processes can be more complex due to the democratic structure.
- Market Fluctuations: Employee bonuses can fluctuate with company performance.
Conclusion:
John Lewis' employee ownership structure is a defining characteristic of the company. This unique model fosters a strong company culture, motivates employees, and contributes to the brand's reputation for excellent customer service. While it has its limitations, John Lewis' ownership structure stands as a successful alternative to traditional corporate ownership models.
