Power and accountability Fostering effective leadership and real representation Strand 2/afternoon

1. Power and accountability Fostering effective leadership and real representation Strand 2/afternoon

2. Power & Accountability The John Lewis way Kim Lowe

3. JLP Constitution “The Partnership’s ultimate purpose is the happiness of all its members “…….

4. JLP Constitution “The Partnership’s ultimate purpose is the happiness of all its members “……. …..“through their worthwhile and satisfying employment….”

5. JLP Constitution “The Partnership’s ultimate purpose is the happiness of all its members “……. …..“through their worthwhile and satisfying employment….” …”in a successful business.”

6. The Partnership aims to ensure that everyone who works for it enjoys the experience of ownership, by sharing in the profits, by having access to information and by sharing in the decision making.

7. The Partnership aims to ensure that everyone who works for it enjoys the experience of ownership, by sharing in the profits, by having access to information and by sharing in the decision making.

8. 3 Governing Authorities

9. 3 Governing Authorities Chairman

10. 3 Governing Authorities Chairman Board

11. 3 Governing Authorities Chairman Board Council

12. Chairman

13. Chairman Appoints 5 members Deputy Chairman. Personnel Director Finance Director Waitrose MD John Lewis MD Partnership Board 5 appointed 2 NED’s JLMB WMB

14. Partnership Council Directly elected by 68,000 Partners Chairman Holds Chairman to account Appoints 5 members Deputy Chairman. Personnel Director Finance Director Waitrose MD John Lewis MD Partnership Board 5 appointed 2 NED’s JLMB WMB

15. Partnership Council Directly elected by 68,000 Partners Chairman Holds Chairman to account Appoints 5 members Deputy Chairman. Personnel Director Finance Director Waitrose MD John Lewis MD Appoints 5 members through election Partnership Board 5 appointed 2 NED’s 5 Elected JLMB WMB

16. Partnership Council Directly elected by 68,000 Partners

17. Partnership Council Directly elected by 68,000 Partners We share knowledge and information about the business between Partners, giving every Partner the opportunity to contribute to decision making as well as to challenge and question. We recognise every Partners right to be listened to and heard regardless of their point of view

18. Partnership Council Directly elected by 68,000 Partners We share knowledge and information about the business between Partners, giving every Partner the opportunity to contribute to decision making as well as to challenge and question. We recognise every Partners right to be listened to and heard regardless of their point of view Each Branch, Supermarket or Distribution unit elects a representative

19. Partnership Council Directly elected by 68,000 Partners We share knowledge and information about the business between Partners, giving every Partner the opportunity to contribute to decision making as well as to challenge and question. We recognise every Partners right to be listened to and heard regardless of their point of view Each Branch, Supermarket or Distribution unit elects a representative Any Partner can stand for election

20. Partnership Council Directly elected by 68,000 Partners We share knowledge and information about the business between Partners, giving every Partner the opportunity to contribute to decision making as well as to challenge and question. We recognise every Partners right to be listened to and heard regardless of their point of view Each Branch, Supermarket or Distribution unit elects a representative Any Partner can stand for election 2 yr term Meets 4 times a year

21. Partnership Council Directly elected by 68,000 Partners We share knowledge and information about the business between Partners, giving every Partner the opportunity to contribute to decision making as well as to challenge and question. We recognise every Partners right to be listened to and heard regardless of their point of view Each Branch, Supermarket or Distribution unit elects a representative Any Partner can stand for election 2 yr term Meets 4 times a year Is one of the 3 governing authorities in the Partnership. Holds Management to account

22. Partnership Council Directly elected by 68,000 Partners We share knowledge and information about the business between Partners, giving every Partner the opportunity to contribute to decision making as well as to challenge and question. We recognise every Partners right to be listened to and heard regardless of their point of view Each Branch, Supermarket or Distribution unit elects a representative Any Partner can stand for election 2 yr term Meets 4 times a year Is one of the 3 governing authorities in the Partnership. Holds Management to account Ultimately can remove the Chairman from office

23. Partnership Council Directly elected by 68,000 Partners Partnership Councillor Job Description To carry out your duties to the best of your ability in ways you think best fulfil the Partnerships constitution Represent your constituency but not as a delegate Be aware of what is happening in the business Discuss, ask questions and make recommendations on any subject in order to hold Management to account Act as a channel of communication between Management and Partners Encourage a sense of shared responsibility from Partners

24. Partnership Council Directly elected by 68,000 Partners Chairman Holds Chairman to account Appoints 5 members plus himself and a Deputy Chairman. Personnel Director Finance Director Waitrose MD John Lewis MD Appoints 5 members through election Partnership Board 5 appointed 5 elected 2 NED’s JLMB WMB

25. Partnership Board 5 appointed 5 elected 2 NED’s .

26. Partnership Board 5 appointed 5 elected 2 NED’s The Partnership Board has ultimate responsibility for issues of major policy and for allocating the financial and other resources of the business through a 5 year rolling Business Plan.

27. Partnership Board 5 appointed 5 elected 2 NED’s The Partnership Board has ultimate responsibility for issues of major policy and for allocating the financial and other resources of the business through a 5 year rolling Business Plan. JLP is unique in that any Partner can stand for the Partnership Board

28. Partnership Board 5 appointed 5 elected 2 NED’s The Partnership Board has ultimate responsibility for issues of major policy and for allocating the financial and other resources of the business through a 5 year rolling Business Plan. JLP is unique in that any Partner can stand for the Partnership Board Elected by the Partnership Council- Maintains the direct link between Partners and Management

29. Partnership Board 5 appointed 5 elected 2 NED’s The Partnership Board has ultimate responsibility for issues of major policy and for allocating the financial and other resources of the business through a 5 year rolling Business Plan. JLP is unique in that any Partner can stand for the Partnership Board Elected by the Partnership Council- Maintains the direct link between Partners and Management Full board Directorship status- equal responsibilities and share in decisions

30. Partnership Board 5 appointed 5 elected 2 NED’s The Partnership Board has ultimate responsibility for issues of major policy and for allocating the financial and other resources of the business through a 5 year rolling Business Plan. JLP is unique in that any Partner can stand for the Partnership Board Elected by the Partnership Council- Maintains the direct link between Partners and Management Full board Directorship status- equal responsibilities and share in decisions Decides on Partnership Bonus percentage. Agrees to redundancies

31. Partnership Board 5 appointed 5 elected 2 NED’s The Partnership Board has ultimate responsibility for issues of major policy and for allocating the financial and other resources of the business through a 5 year rolling Business Plan. JLP is unique in that any Partner can stand for the Partnership Board Elected by the Partnership Council- Maintains the direct link between Partners and Management Full board Directorship status- equal responsibilities and share in decisions Decides on Partnership Bonus percentage. Agrees to redundancies Corporate governance, audit and risk

32. Partnership Council Directly elected by 68,000 Partners Chairman Holds Chairman to account Appoints 5 members plus himself and a Deputy Chairman. Personnel Director Finance Director Waitrose MD John Lewis MD Appoints 5 members through election Partnership Board 5 appointed 5 elected 2 NED’s JLMB WMB

33. Local Democracy

34. Branch Forum Selected by jury method Branch Management Holds branch Management to account Holds Partners to account to contribute to a successful business

35. Any Questions?

36. Harnessing co-ownership to improve business performance 2 October 2007

37. Power and Accountability Leadership and Representation David Erdal

38. Power Shareholders Directors Managers Employees

39. Directors

40. Employee Rights • No right to information • No right to influence • No right to share in profits • No right to share of assets/ capital • In practice, grace and favour information • Some involvement • Treat as if human • Illusory - rude awakening with acquisition

41. EO Power Shareholders Directors Managers Employees

42. Employee Ownership • Establishes rights • Information • Influence/ involvement • Profit share • Asset share

43. Trust Information • Regular • Good and bad • Listening to points made • Answering questions • John Lewis Letters page

44. Involvement • Not a fool to make that extra effort • Am I treated with respect? • ‘They’ invite me, listen to me • Is this for real? • Voting the directors on and off • Calling EGMs • Will I share in the results? • Are ‘they’ really acting in my interests or is this a con?

45. Attempted answers • Elected directors • No decisions taken without rep there • But possible ‘bad faith’ • Consultative forum • Allows larger numbers • But depends on good faith • Interrogation in public • cf John Lewis quarterly meeting

46. Power • AGM • Directors re-elected • Can in theory vote off • Elected trustees • If hold controlling shares • But always a matter of judgement • Incumbents very influential

47. Fail Safe? • No guarantees • Select good people • e.g. School Trends interview first for values • Monitor them • Make a fuss • Active citizenry

48. Harnessing co-ownership to improve business performance 2 October 2007