Staff morale is a key consideration for any business and it is essential that employees feel connected to the company and are therefore empowered to aspire to achieve a common goal. With a strong focus on innovation, it’s important that all staff are encouraged to add value to their role and to their company. This is where the Partnership model gives all employees the incentive to be engaged with its success. The annual bonus is viewed by Partners as a thank you for the hard work and commitment throughout the year and there is a great deal of excitement within the business in the lead up to the announcement each year. In March 2015 the Partnership redistributed £156.2 million in profits to Partners - money that in most other companies would go straight to external shareholders instead. Locally, this bonus is distributed to around 800 Partners across Waitrose’s five branches in Guernsey and Jersey.
Financial rewards are not the only benefits of the employee- owned business model however; our Partners are also included in businesses decisions and have been since we first became part of the John Lewis Partnership in 1937. Beginning as a chain of specialist food shops, it wasn’t until 1955 that the first Waitrose supermarket was opened.
John Spedan Lewis, founder of the Partnership, gave the business to his employees; his ultimate goal being to balance their happiness and success.
The aim of the Partnership was to instil a governance system that would give every staff member a voice in the business they co-own. At the top level the Partnership has three governing authorities: the Partnership Council, the Partnership Board, and the chairman.
Democracy plays a huge part in the running of the business and the Partnership Council is the democratically elected body that represents Partners as a whole and reflects their opinions. The council is unique in corporate governance compared with other companies in the UK. Directly elected by Partners, it holds the chairman to account and a representative sits on the executive board.
It is the voice for ensuring that the business is run for, and on behalf of, the Partners. As an employee-owned business it’s important that we are not a faceless organisation. As any organisation needs to show transparency to its shareholders,
we need to ensure that every single one of our
employees is happy and comfortable with how the business is being run and that there is a place for them to discuss any concerns that they have.
The Partnership Council shares responsibility for the health of the Partnership. The council has an important role in influencing Partnership policy and how our profits are spent, particularly on things that affect Partners directly - like pay, pensions and discount policies. It has the power to discuss, to ask questions and to make recommendations on any subject and elects five directors to the Partnership Board.
The Partnership Council holds the chairman to account for leadership of the business in line with Partnership principles. The level of trust placed in the council is such that it has the ultimate power to hold the chairman accountable. The chairman appears before the council twice a year to report on the business and answer questions on the running of the Partnership.
Our Partnership Board is different to most other boards; it brings relevant skills and experience to the table through a mix of appointed and democratically elected Partners, a combination that ensures innovative ideas and a unique approach to management. The Partnership Board is responsible for the overall organisation and performance of the Partnership and is structured by a series of prudent and effective controls which enable risk to be assessed and managed. It is collectively responsible for the success of the Partnership and operates within a framework of reserved matters, delegations and assurance.
The chairman has personal responsibility for ensuring that the Partnership retains its distinctive character and democratic vitality. The Partnership Board delegates management of the Partnership's business to the chairman, ensuring its effectiveness on all aspects of its role.
Our current chairman is Sir Charlie Mayfield. Elected in 2007, Sir Charlie is the Partnership’s fifth chairman and previously served as head of business development, responsible for business strategy and development, for both John Lewis and Waitrose.
To ensure that all Partners, no matter where they’re based, have their say, a democratic function has been introduced in every branch. Known within the Partnership as ‘Partner Voice’, this forum is unique to the Partnership business and plays a major part in the democratic process. Elected from within each branch, the forum meets to discuss various issues surrounding day-to-day operations as well as any current, larger issues within the business. Any issues that arise can then be escalated via the Partnership Council to the chairman and the divisional managing
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