John Lewis Model of People Management in Retail.<\/strong><\/em><\/p>\n <\/a>\u2022 John Lewis is an employee owned Retail company<\/p>\n \u2022 It is one of the largest retailers in the UK \u2013 sales of 11 bn pounds.<\/p>\n \u2022 The People management Model is based on the principle that \u201cA <\/span>happy, engaged workforce and a long term focus delivers shareholder value<\/span>\u201c.<\/span><\/p>\n \u2022 The proposition to employees is about outstanding leadership and training.\u00a0\u00a0 John Lewis believes that employees, will then deliver a customer satisfaction proposition, sufficiently differentiated as to create value.<\/p>\n How the partnership model works<\/em><\/strong><\/p>\n \u2022 No external shareholders \u2013 the company is entirely financed through internal accruals and borrowing.<\/p>\n \u2022 Profits are either ploughed back into the business, or redistributed back to the employees.<\/p>\n \u2022 Everybody, gets the same percentage of profits irrespective of grade \/ level.<\/p>\n Laura Whyte,<\/strong> Personnel Director, John Lewis<\/p>\n Employees are \u201cPartners\u201d in the business.<\/p>\n The principles of the \u201cPartnership Model\u201d<\/strong><\/em><\/p>\n <\/a><\/p>\n <\/p>\n Behaviours which epitomize the Partnership model.<\/strong><\/p>\n <\/a>\u2022 These have been articulated, crafted and adopted by Partners.<\/p>\n Developing a Leadership \u201cCompass\u201d<\/strong><\/p>\n \u2022 Partners have created a Leadership \u201cCompass\u201d \u2013 Critical behaviors that are required by current and future leaders which recognize the conflicting tensions that they are expected to reconcile.<\/p>\n <\/a><\/p>\n Leaders are expected to balance and maintain a \u2018creative\u2019 tension, while driving the business towards the goal.<\/p>\n Mechanisms that John Lewis uses for getting things done.<\/strong><\/p>\n \u2022 Partners decide the final % of profits to be redistributed.<\/p>\n \u2022 Each week \u2013 two magazines are published in-house \u2013 a local,\u00a0 store specific edition and a national one<\/p>\n \u2022 Any partner can write in anonymously \u2013 their manager must respond.<\/p>\n \u2022 No editing of the letters is permitted \u2013 unless the Chairman approves.<\/p>\n \u2022 Employee attitude surveys are used to gauge feedback \u2013 which must be implemented, if the it is the opinion of the majority of Partners.<\/p>\n \u2013Response rates to these surveys are 88%.<\/p>\n On employee attitude surveys:\u00a0 \u201cIf you are not prepared to change, don\u2019t ask the question\u201d.<\/p>\n Partners concerns can range from advertising to the environment<\/strong><\/p>\n <\/a><\/p>\n All concerns are carefully debated, considered and voted upon.<\/p>\n What happens when things get tough?<\/strong><\/em><\/p>\n \u2022 Most retailers reacted to the 2009 recession classically \u2013 they cut inventory and head count.<\/p>\n \u2022 John Lewis decided to continue its approach of focussing on the long term.\u00a0 \u201cLet the profit takes its course\u201d was the majority view of the Partners.<\/p>\n \u2022 In 2009 the company did not make money for 5 months.<\/p>\n \u2022 Saw the online space as an opportunity, increased SKU\u2019s from 45,000 to 200,000.<\/p>\n \u2022 Over 2009-2013 the online channel became a growth engine \u2013 2013 online sales crossed 1 bn pounds<\/p>\n<\/div>\n Taking decisive action \u2013 the online story.<\/strong><\/em><\/p>\n \u2022 Expect that by 2020 \u2013Bricks and Clicks will be equal contributes to sales.<\/p>\n \u2022 Website \/ mobile enablement is key.\u00a0 2013\u00a0 – spend of 40 mio pounds on the website.<\/p>\n \u2022 Online success is about controlling supply chain – end to end:\u00a0 building the second fully automated DC @ 750,000 sq feet to match its twin.<\/p>\n \u2022 A large segment of the online customer is young \u2013 39% are less than 35 yrs old.\u00a0\u00a0 This is good news for a brand that has often been considered, \u201csolid, stable, middle class\u201d in the UK market.<\/p>\n \u2022 Have created designer collaborations \u2013 and developed a master brand\u00a0 in Fashion & Home.<\/p>\n All concerns are carefully debated, considered and voted upon.<\/p>\n Investing in Partners (i.e. employees)<\/strong><\/em><\/p>\n \u2022 Over 2,000 Partners registered for an external qualification in 2012<\/p>\n \u2022 Address concerns that retail is not a \u201cproper job\u201d.<\/p>\n \u2022 335 Partners achieved a qualification in Distribution<\/p>\n \u2022 215 Partners achieved a Contact Handling qualification<\/p>\n \u2022 New JL apprenticeship programme<\/p>\n <\/a><\/p>\n Laura Whyte,<\/strong><\/p>\n Personnel Director, John Lewis<\/p>\n<\/div>\n