By Salaman, Graeme; Storey, John
This paintings bargains a completely researched and available account of the toilet Lewis Partnership. It describes what the JLP is, the way it works, and what different companies can research from it
summary: This paintings bargains a completely researched and obtainable account of the toilet Lewis Partnership. It describes what the JLP is, the way it works, and what different companies can research from it
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Extra resources for A better way of doing business? : lessons from the John Lewis Partnership
And history tells us what will happen if those reforms don’t take place. There will be a resurgence of folly, which always ﬂourishes given a chance. And the consequences of that folly will be more and quite possibly worse crises in the years to come. (Krugman and Wells 2010) The underpinning rationale of this book is precisely this task: the analysis of the nature and deﬁciencies of the prevailing US/UK model of the ﬁrm. But our approach to this issue is elliptical. We address it not through a direct analysis of the prevailing conception of the ﬁrm but through an analysis of an organization which has become, for many managers, commentators, and politicians, an iconic example of an alternative model: one that is increasingly used in policies 4 OUP CORRECTED PROOF – FINAL, 27/6/2016, SPi The Big Picture and debates to exemplify another and successful way of doing business, one that reverses many of the more extreme and—to many—disquieting elements of the conventional model of the ﬁrm.
According to the Cambridge economist, Ha-Joon Chang, and Massachusetts economist, William Lazonick, ﬁrms have tended to under-invest and to distribute instead too high a proportion of their proﬁts to shareholders. Between 2001 and 2010, top UK ﬁrms distributed 88 per cent of proﬁts and top US ﬁrms distributed 94 per cent in dividends and buy-backs (Chang 2012). 1 per cent and ordinary workers were not beneﬁting, indeed, good jobs were continuing to disappear. He suggests: The allocation of corporate proﬁts to stock buybacks deserves much of the blame.
In the analysis which follows, we track the advantages, the challenges, and the potential embodied in this alternative form. The John Lewis Partnership: A Better Way? The fundamental questions posed in the preceding paragraph are reasons enough to invest time in a close analysis of the John Lewis Partnership because, although no one would claim it offers a universal total solution, it has, over an extended period, sought to grapple with many of the tensions identiﬁed. Thus, its foremost concerns have been issues of staff engagement, fair reward, a long-term view, an independence from shareholders, and extended debates about ultimate purpose.