Organisational Culture Does it Affect the Performance of Employee Equity Ownership? Presented by

1. Organisational CultureDoes it Affect the Performance of Employee Equity Ownership? Presented by Loren Rodgers National Center for Employee Ownership (USA)

2. What Makes ESOPs Work?

3. What Makes ESOPs Work?

4. What Makes ESOPs Work?

5. What Makes ESOPs Work?

6. What Makes ESOPs Work?

7. What Makes ESOPs Work?

8. What Makes ESOPs Work?

9. Shared Capitalism Research Project Four success factors: • High performance work practices(employee involvement groups/teams, high training, job security) • Wages (at or above the market for the region) • Reasonable economic security • Low supervision (high supervision → negative effects) Richard Freeman, Joseph Blasi, Douglas Kruse, Shared Capitalism at Work, University of Chicago Press, 2010.

10. Participation and Ownership Spirit My point of view is taken into consideration in decisions about the general direction of the company. Disagree Skeptics Neutral Agree Champions 0% 20% 40% 60% 80% 100%

11. Business Literacy “Open Book Management” means • Employees understand the business • Employees know the business’s key numbers

12. Research on OBM NCEO Study (1997) • 51 OBM companies • Approx 200 comparison companies • Outcome: OBM strengthens companies http://www.nceo.org/library/obm_nceostudy.html

13. Lens 2: Reciprocity There is no ownership without rights. There is no ownership without responsibilities.

14. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

15. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

16. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

17. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

18. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

19. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

20. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

21. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

22. From Participation: Decision Making and Employee Ownership, The Ownership Culture Report, Cambridge, MA: Ownership Associates, Vol. 1, No. 2, Fall / Winter, 1998.

23. Lens 3: U.S. Experience Six Necessary Steps • Creating a Plan • Understanding the Plan • Business Literacy • Information Sharing • Incentive Plans • Employee Involvement

24. Big Questions • Should government encourage ownership culture? • Should investors prefer employee ownership companies with strong cultures? • Are some companies better without employee ownership and ownership culture?

25. Questions? Loren Rodgers National Center for Employee Ownership 1736 Franklin Street, 8th Floor Oakland, CA 94612 510-208-1300 LRodgers@nceo.org