Business Intelligence

Why Employee Ownership is Good for Business

by Corey Rosen, John Case and Martin Staubus (14900)

Despite the fact that thousands of companies are now wholly or partly owned by their employees, many companies are still failing to pick up on the competitive advantages offered by employee ownership — faster growth, higher profitability and better resilience in times of economic downturn. A solid business case can now be made for the practice of making employees true partners in a firm’s success by giving them a significant equity stake in the business enterprise.

Building a successful equity company, however, isn’t just a case of letting employees buy stock and then living happily ever after. To realize the true benefits of this concept, employees have to see themselves as owners and create a different kind of workplace that aligns with that perspective. That means the culture of the organization must change and evolve as well. Furthermore, employees have to learn how to run the business differently if their ownership is to have any practical impact. Unless all three of these elements are present, employee ownership just won’t deliver any tangible benefits.

The three essentials of an employee equity business model:
1. Size: Enough equity that it will impact on the employees’ finances.
2. Culture: Employees must be encouraged to think and act like owners.
3. Understanding: Employees must understand business disciplines and commit.

More than just another option in the human resource department’s kit bag of benefits, employee ownership has the potential to comprehensively transform ordinary companies. When employee ownership is combined with participatory management, businesses often move into and stay in high-growth mode. Employee ownership turns up in a very large number of influential and successful companies. Perhaps this isn’t just a coincidence.

Equity

How to Create It, Build It, and Use It to Maximum Advantage

by John L. Nesheim (14800)

When a company has an unfair advantage in business, it’s no longer required to compete against everyone else on a level playing field. Instead, it loads the dice in its own favor, and makes success more likely. Unfair advantage is the “magic elixir” or the “secret sauce” of the business world. Entrepreneurs live for it, venture investors scour the world looking for it, the top employees are attracted by it, the media love covering it and investors pay handsomely to get a part of it.

Quite simply, everyone and every organization needs an unfair advantage in order to stand out in this intensely competitive world. Finding, enhancing and then harnessing an unfair advantage is the holy grail of the business world. It is the engine that drives the growth of business start-ups and turns them into world class enterprises.

The Power of Unfair Advantage

Everyday Values We Learned as Children (But May Have Forgotten)

by Jon M. Huntsman (14700)

To get ahead in business and stay there long-term, reconnect with and live the values you first learned as a child and that you’ve probably assumed no longer apply in business.

For most people regardless of their culture or upbringing, the values they learned as children were:

1. Before you act, always stop and check your moral compass.
2. Compete aggressively, but always play by the rules.
3. In leadership roles, set a good example.
4. Always keep your word, no matter what the consequences.
5. Surround yourself with advisors who will say no when needed.
6. Forget about revenge. Move onwards and upwards.
7. Treat everyone with respect — customers, employees, etc.
8. Always operate your business as if your name is on the door.
9. Give something back to the community. Return the favors.

There never needs to be a disconnect between the values you have in your own life and what you do at work. You just don’t have to cut corners, fudge the numbers or cheat in large ways or small to stay competitive. What’s needed most is that you reconnect with and live the values you had as a child.

Winners Never Cheat

Get a Jump on What Your Customer Wants Next

by Robyn Waters (14600)

Contrary to generally accepted wisdom, new trends aren’t always spotted early ultra-hip types who are much cooler than everyone else. At the very best, these people help keep a business up-to-date with what’s going on in the world. They’re trend trackers. Instead, you need to become a trendmaster — someone who initiates a new trend and translates it into ideas and concepts that make sense for your own company and customers. The good news is everyone can become a trendmaster by adopting the right mind-set and by applying the A-Z tools and tricks of the trendmaster trade.

The Trendmaster’s Guide

Expanding Your Business Around the Corner or Across the Globe

by Arthur Rubinfeld and Collins Hemingway (14500)

Great national and international retail success stories don’t happen by accident. It isn’t just a case of opening a store, making that store run well and then duplicating that first store ad infinitum. Instead, retail brands that win long term have been designed for rapid growth right from the outset. All of the necessary elements have been put in place first so growth becomes a natural part of the ongoing story rather than good fortune.

In particular, there are four phases involved in growing a great retail business:

1. Aspire to become a national / global brand
2. Prepare to expand right from the outset
3. Build your brand prominence by locating astutely
4. Maintain brand leadership by pushing the envelope

Retail businesses are great because they allow you to control your own destiny and to express your creativity. When you create a new retail business from the ground up, you build a market presence that is highly valuable. To get to this stage, however, a holistic approach will be required. You’ll need to conceive of a profitable retail concept and fine-tune your ideas in your local market first. Then you’ll need to understand how to expand from one market to another until you grow from one market to dominance and presence in regional, national and ultimately international markets. As your enterprise grows and evolves, you’ll need to keep your brand fresh and vibrant by continuing to innovate and try new things.

Built for Growth