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Employee ownership (EO) has the potential to deliver outstanding benefits to individual owners and drive exceptional company performance.
However, research shows, for that to happen, a business must have excellent EO management practices in place.
To help identify EO best practice, we developed the EO Framework. It is built on insights gathered directly from leaders, senior decision-makers and employee owners on how they have successfully implemented impactful EO.
Developed by Great EO's founding partners in collaboration with the Employee Ownership Association, the EO Framework sets out four simple areas of EO management best practice:
To bring the EO Framework to life, we have created a simple health check - the eoQ™ test - to help you assess the strength of your current EO practice and signpost areas for possible improvement. It should take up to 20-30 minutes to complete the questionnaire.
It is vital that individual leaders, trustees, employee representatives and all employee owners understand their roles to ensure a successful EO business.
To what extent does everyone fulfil their responsibilities in your business?
1. Our employee owners understand how to think and act like an owner.
2. Our employee owners are committed to making the business stronger.
3. Our employee owners understand how their actions impact the current year’s business results.
4. Our employee owners understand how their actions help to execute our longer-term strategy.
5. Our employee owners understand how their actions strengthen our organisational culture.
Please add any additional comments:
1. Our executive leaders (those responsible for leading the business) are committed to realising the full business potential of our employee ownership.
2. Our executive leaders regularly engage our people to contribute as owners to our vision and strategy.
3. Our executive leaders ensure our people feel connected to our purpose, values, owner mindset and behaviours.
4. Our executive leaders are role models for our desired owner behaviours and culture.
Please add any additional comments:
1. All our governance bodies (boards, councils and voice groups) are clear on their role in ensuring long-term success for the business and its employee owners.
2. All our governance bodies work collaboratively and effectively to promote an ownership culture.
3. All our governance bodies involve independent members who bring relevant experience, perspectives, and insights.
4. All our governance bodies effectively use the diverse skills, experiences and opinions of their members.
5. All our governance bodies fairly distribute ownership benefits in a manner that supports an ownership culture.
6. All our governance bodies make decisions in the long-term best interests of the organisation and its stakeholders.
Please add any additional comments:
EO core practices build a strong ownership culture which drives engagement levels and encourages owner behaviours, including how to promote and protect the business over the long-term.
To what extent are you effectively engaging your people as owners and building an ownership mindset?
1. Our behaviours as owners are improving the performance of the business.
2. Our people processes (recruitment, development, appraisal and reward) encourage and reward our desired owner behaviours.
3. Our culture creates a safe environment for feedback, learning, growth, health, well-being, inclusion and diversity.
4. Our culture and support for people develops and retains the right talent.
Please add any additional comments:
1. All of our managers (those responsible for managing people and processes) help ensure our people understand how and where decisions are made in the business.
2. All of our managers help ensure our planning process, goal setting, and feedback channels enable people to influence decision-making as owners.
3. All of our managers help ensure our people clearly understand the connection between their owner behaviours and strategy, business performance and reward.
4. All of our managers help ensure our people are encouraged and empowered as owners to take responsibility for their own performance and contribution.
Q24 Please add any additional comments:
1. During tough times, we balance the current and future needs of our employee owners with those of the organisation.
2. Our employee owners identify and manage risks to protect our organisation and reputation.
3. We learn from tough times to become stronger in the future.
4. Our culture encourages leaders, managers and specialists to develop candidates for their own succession.
Q26 Please add any additional comments:
An EO business can use its ownership model to provide commercial advantages as it faces into the world.
To what extent are you harnessing the contributions of employees as owners to strengthen the quality and effectiveness of your strategy, innovation and commercial sustainability?
1. Our vision sets out the compelling benefits of our ownership model.
2. Our strategy builds on our unique strengths including our ownership model.
3. Our strategy outlines key activities and milestones that ensure our employee owners know how to contribute to a successful business.
4. Our strategic approach to key markets ensures success by drawing on the experience and insights of our employee owners.
Q29 Please add any additional comments:
1. Our employee owners understand how our business works and delivers results.
2. Our employee owners are committed to driving continuous improvement and growth.
3. Our employee owners consistently contribute ideas that improve our business.
4. We provide clear channels and processes to capture, consider and provide feedback on new ideas and suggestions.
5. We successfully prioritise and manage these ideas to deliver improvements to our business.
Please add any additional comments:
1. We leverage our EO status to differentiate our customer brand to win against our competitors in the market.
2. We leverage our EO status to differentiate our employer brand to strengthen our people proposition and attract talent.
3. We leverage our EO status to differentiate our company brand to develop and retain high-quality relationships with suppliers and delivery partners.
Please add any additional comments:
Well-run EO businesses ensure decision-making is informed by relevant data and insights from inside the business and by benchmarking themselves against others. This helps set strategic focus, direct operational effort, ensure continuous improvement and drive better business performance.
Do you have the right EO data and insights to make this happen?
1. We are collecting data within the business that helps us understand how we benefit from our EO model.
2. We measure and compare our EO performance with other similar EO businesses.
3. We measure and compare our performance with other businesses in our sector (regardless of their ownership model).
4. We pay attention to our impacts on more than just our employee owners (e.g. our customers, community or planet).
Please add any additional comments:
1. Our leaders and governance bodies use relevant EO data and insights to increase engagement levels among our people.
2. Our leaders and governance bodies use relevant EO data and insights to strengthen our ownership culture.
3. Our leaders and governance bodies use relevant EO data and insights to grow our business.
4. Our leaders and governance bodies use relevant EO data and insights to meet the aspirations of our current employee owners.
Please add any additional comments:
1. EO data and insights helps us demonstrate that our EO model encourages collaboration and team-working.
2. EO data and insights help us demonstrate that our EO model promotes engagement and job satisfaction.
3. EO data and insights help us demonstrate that our EO model improves health and well-being for employee owners.
4. EO data and insights help us demonstrate that our EO model supports colleagues’ skills and capability.
5. EO data and insights help us demonstrate that our EO model encourages strong ideas from colleagues.
6. EO data and insights help us demonstrate that our EO model helps us recruit and retain talent.
7. EO data and insights help us demonstrate that our EO model boosts personal commitment and productivity.
8. EO data and insights help us demonstrate that our EO model increases profitability.
9. EO data and insights help us demonstrate that our EO model encourages more contribution to the local community.
10. EO data and insights help us demonstrate that our EO model encourages a focus on protecting the planet.
Please add any additional comments: