Succession planning – could employee ownership be right for your family business?
Five million. That’s how many family businesses there are in the UK today, employing more than 12 million people between them.
These are big numbers, by any measure.
Yet equally big is the economic contribution they make and the positive role many continue to play in communities up and down the country today.
So what happens when it comes to succession planning if you’re a family business?
What if the next generation wants something different – and a trade sale or MBO just doesn’t feel right?
Transitioning to employee ownership (EO) is one option family businesses can explore.
Exploring employee ownership as a succession option
Companies who’ve chosen EO to secure sustainable success in the last 10 years range from household names Riverford Organics and Go Ape to eighth-generation family business Lodge Brothers, which JGA supported to transition in January 2024
The EO sector is dynamic and growing, with more than 1,650 employee-owned businesses around the country, according to the latest figures from the eoa.
Companies who’ve chosen EO as the way to secure sustainable success in the last 10 years range from household names Riverford Organics and Go Ape to eighth-generation family business Lodge Brothers, which JGA supported to transition in January 2024.
So what is employee ownership? The eoa describes EO as when employees have a say and a stake in the company they work for.
Ownership can take a variety of forms – from employees directly owning shares in the company, to having shares held on their behalf in an Employee Ownership Trust (EOT). The EOT model is the most common in the UK.
Creating sustainable success for your family business
Telos's Alex Bloom (seated, first from right) with some of our team
So why is EO worth considering for your family business?
JGA and our Telos Partners colleagues have a sound track record of supporting founder/owners and their businesses with the leadership, governance and employee engagement aspects of transitioning to EO.
We also work with existing EO businesses to embed and accelerate the commercial and cultural benefits of being employee-owned.
‘Transitioning to employee ownership can safeguard the founder’s legacy while freeing the company to shape its own path,’ says Telos Partner Alex Bloom.
‘It puts the business into the hands of the people who know it best and who, hopefully, also care passionately about securing its sustainable success.
‘Becoming employee-owned is one way a family business can retain and strengthen its culture even when family members are no longer around.’
Empowering the next generation to lead
Alex with JGA's Corrine Thomas at a recent eoa event
Having previously worked in and then led his own fourth-generation family business, Alex finds supporting others to explore EO – and achieve a smooth handover of the reins – particularly fulfilling. ‘I genuinely love it,’ he confirms.
‘I’ve seen the impact of succession through my own family business as it passed from my grandfather and his brother to the next generation.
‘I’ve seen how a family business can be evolved and strengthened as new generations come on board – and I’ve seen the impact when some family members aren’t motivated to be involved. I’ve also seen the benefit that non-family members can bring.
‘With employee ownership, it can be very empowering for the next generation (whether family or not) to understand there’s a future for them, with the opportunity to contribute to the direction of the business they now own.’
Commercially, EO businesses have been shown to be more productive. They also invest more in supporting employee health and wellbeing, on-the-job training and critical benefits like flexible working, according to the findings of the eoa’s Knowledge Programme which was published in 2023.
Making the right decision for your family business
JGA's Lisa Fryer (top right) supported Pym & Wildsmith's EO transition in 2022
EO’s benefits are good to know, but EO won’t be the right path for every family business.
It takes time, energy and research to make such an important decision – and, if you do choose EO, just as much focused effort to ensure the transition process runs smoothly for all involved.
As Sarah Pym-Eaton – one of the previous family owners (now Finance Director) of metal finishers Pym & Wildsmith, whose EO transition JGA supported in 2022 – recalls: ‘We invested a lot of thought and care because we wanted to get it as right as we could without constraining the team moving forward.
‘Our employees are the heartbeat of our company, both past and present, so to be able to transition in the right way was really important to us all.’
So if you’re a founder/owner who’d like to explore employee ownership as a succession option, what should you do next?
What should you do next?
Here are 4 practical steps to get things started:
Do your research – the eoa website is a good place to start, as is connecting with other employee-owned businesses to learn from any insight they can share.
Equip yourself with the facts so you’re clear about what EO is – and what it isn’t. JGA’s founder and MD Jeremy Gadd helpfully busts 5 common myths about EO here
Seek expert legal and financial advice on the transition process from a trusted professional with EO-specific experience – there are several out there with a sound track record of steering family business clients through this phase to success, including JGA’s trusted partners.
Get in touch with us today to find out more about the support Telos and JGA can provide to prepare you and your business for a smooth transition – working with you to shape, embed and accelerate the benefits of being employee-owned.
A version of this blog was first published as a guest blog on the Family Business United website in September 2024.
Want to know how JGA and Telos Partners can support your family business to explore employee ownership as a succession option? Get in touch today.
EO Day 2024 – why we’re proud to support #ProudlyEO
If you’re employee-owned – or a business like us that’s proud to support the EO sector – EO Day 2024 will have been in your diary for months.
It’s certainly a red letter day at JGA, and not just for the EO Day cakes – although our team’s worked in/with EO companies long enough to know the part these play…
No, this year Friday 21 June is about more than the cake. In fact, it’s a DOUBLE red letter day at JGA because it’s the first EO Day we’re celebrating with Telos Partners, as our two businesses continue to merge.
So bring on the party snacks and get out the bunting – here’s 5 reasons we’re proud to support #ProudlyEO!
1. Employee-owned businesses are more productive
It’s there in black and white. Good employee ownership doesn’t just ‘happen’ but, at their best, EO businesses regularly outperform their non-EO peers in almost every metric.
According to the eoa, they’re 8-12% more productive per employee and invest more in their people, innovation and communities. EO businesses are also 25% more likely to have seen their profits grow in the past five years, post-transition.
Inspiring proof that great EO truly can drive business success. Read the eoa’s evidence-based research here.
2. Employee-owned businesses like to share
JGA’s Lisa and Jeremy (far right) with Stephens Scown’s team at their June EO Knowledge Share
If you’re EO, you know these aren’t just empty words: EO businesses really DO like to share. Just check out Stephens Scown’s latest EO Knowledge Share on 6 June.
Hosted at its Exeter offices, the EO Knowledge Share was (as usual) open and useful, with those who came openly sharing their experiences of EO. This time, our MD Jeremy and Associate Lisa were delighted to be invited to facilitate the event.
But initiatives like Stephen Scown’s aren’t the only place you’ll see EO’s ‘sharing’ spirit in action.
Simply cast your mind back to the eoa conference 2023. That’s when 800+ ‘movers and shakers’ gathered in Liverpool to share the experience and insight they’d gained on their EO journeys plus network with other EO advocates like them.
Which leads us neatly to the third reason we’re proud to support #ProudlyEO…
3. Employee-owned businesses LOVE a get-together with the eoa
What a night! Team JGA and Telos enjoy the gala dinner at the eoa conference 2023
They really do. And what better place to do this than the annual eoa conference? Last year it was Liverpool, this year it’s Telford, with tickets now available for EO’s biggest event of the year.
It’s the go to event for the EO sector – and not to be missed.
In fact, our MD Jeremy described the eoa conference 2023 as ‘the most successful eoa conference to date’ – so we have high hopes for the next one. No pressure, Team eoa!
Find out more about eoa conference 2024 here – happening 26-27 November. See you there!
4. Employee-owned businesses like to learn
‘The [new] EO Framework is a blueprint of practices that supports employee-owned businesses at any stage of their EO journey to develop and evolve’
James de le Vigne, CEO of the eoa
Business doesn’t stand still and neither does EO. As the sector grows, we’re encouraged by recent moves to clarify what is (and isn’t) best practice backed by evidence-based research and practical steps to ‘do’ it well.
It’s always been what we’re about at JGA. But now the momentum’s building as the sector unites to show that EO is more than two initials above your workplace door.
Cue April’s launch of the new EO Framework – a simple structured model developed by the eoa using insights from the EO Knowledge programme with the support of our Telos Partners colleagues.
James de le Vigne, CEO of the eoa, describes it as ‘a blueprint of practices that supports employee-owned businesses at any stage of their EO journey to develop and evolve’.
Expect to hear more about the EO Framework – and how to use it – as the year unfolds. Read about the EO Framework here.
5. Employee-owned businesses like to celebrate… with cake
Okay, we couldn’t resist – we left the ‘best’ of EO Day to last… we couldn’t let EO Day go without spotlighting some of those cakes.
We don’t know yet what the day will bring but pictured here are some of the bakes our ace baker Lisa’s made for us in the past year…
Happy EO Day 2024!
Want to know how JGA and Telos can support your EO business to thrive? Get in touch to arrange a no obligation meeting now.
The Three Rs of successful employee ownership
How do you create and lead a successful employee-owned (EO) business when the climate is as tough as it is now?
For our MD Jeremy Gadd, the answer is clear. Clarify and articulate the ‘Three Rs’ (rights, responsibilities and rewards) of employee ownership – then bring each meaningfully to life.
JGA’s founder and MD Jeremy Gadd
Through his work with JGA, and elsewhere as an Independent Trustee, Jeremy has seen how each can play a practical role in enabling clients to drive their business’s performance.
As he explains: ‘The most successful employee-owned businesses know how to use their employee ownership as a business lever. The Three Rs underpin everything they do.’
Unlocking the best of EO
‘The Three Rs are the component parts that allow your business to have a different relationship, and different conversations, with your employees as ‘owners’.
‘When people can articulate how the rights, responsibilities and rewards of EO are effectively applied across all levels of their business – that’s where you can unlock really great EO.’
Jeremy cites Arup, The 1:1 Diet by Cambridge Weight Plan, Gripple, Richer Sounds and Riverford Organic Farmers as businesses whose understanding of the Three Rs has made them positive examples of EO in action today.
With #ProudlyEO the theme of the eoa’s EO Day 2024 on 21 June, each demonstrates the deeper value that the best employee ownership can deliver – for people, businesses, communities and the economy.
Recognising the role of leadership
‘At one level, EO is simply another ownership model. If you really want to pull the lever it affords you, going though this process and bringing the Three Rs to life – that’s what enables you to… secure the outcomes you want’
Jeremy Gadd, Founder and MD, J Gadd Associates
Over the last 10 years, Jeremy’s appreciation of the Three Rs’s has been boosted by seeing how useful JGA’s clients have found the process of clarifying what they mean for their own businesses.
‘Often, when clients reach out to JGA for our support, they’ll say: ‘Our people don’t get it’,’ he explains.
‘When I ask what it is that their people don’t get, the reply is ‘being EO’. Understanding the Three Rs will go a significant way to helping them ‘get it’.’
He points out: ‘At one level, EO is simply another ownership model. If you really want to pull the lever it affords you, going through this process and bringing the Three Rs to life – that’s what enables you to unlock the discretionary effort of your employee owners and secure the outcomes you want.
‘This is why a key part of our work at JGA is helping our employee-owned clients to explore what they’re trying to achieve, how they’re engaging their people and whether they have the right leadership in place.
‘That last point is important because every business needs great leadership to be successful, irrespective of its ownership model.’
Putting the Three Rs into practice
Riverford Organics’ journey shows how the Three Rs can work in practice
So what do the Three Rs look like in practice?
Every business is different, but Jeremy starts by explaining that there are three questions every employee owner should understand:
• What am I allowed? (my rights)
• What do I have to give? (my responsibilities)
• What will I get? (my rewards)
‘The rights of employee ownership might include the right to understand, influence and challenge how your business is working, to engage and be consulted with on major (and some smaller) issues,’ he says.
‘The responsibilities might be to participate positively, work collaboratively and support your fellow co-owners, to drive the performance of your business beyond your day job. To look for solutions, not problems.’
Understanding different types of ‘reward’
And the rewards?
‘The obvious one is the reward of receiving a share of the financial profits,’ says Jeremy. ‘Indeed, some people believe EO only works when you’re sharing profit.
‘However, I disagree with that – there are not-for-profits, mutuals and spin-outs where the rewards aren’t a profit-share but can be the ability to influence, to participate and to have the opportunity to create a culture with a deeper sense of belonging.
‘The ability to influence how surplus is invested for customer, client or patient care (depending on sector) is very appealing.
‘In an EO business the reward may be that you feel more in control of your destiny – that the future is more stable because there’s a lower risk of buy-out by a venture capitalist or competitor.
‘There’s also the reward of working in an independent business where your input makes a difference and your voice is truly heard.’
Creating a fresh relationship with your employee owners
Jeremy and JGA’s Kathie Robbie enjoy supporting clients to make more of their EO
But clarifying your employee owners’ rights, responsibilities and rewards is only half the picture. The next step is to bring them to life.
It’s not rocket science.
‘You may already be doing some of this in your business,’ Jeremy says. ‘But when you become EO, you should recognise that it’s powerful to create a different relationship with your people – and explore how you want to make that real at different levels of your business.
‘For example, if you believe the right to influence is important, you need to create the mechanisms to support that. If you’re going to pay a bonus, you need to be clear about how that can be achieved – it may be linked to the responsibility to reduce wastage and improve efficiency.
‘If you do this, the individual can see how they can make a difference and truly play their part. It’s important to look at your people as your fellow owners, not as employees.
Making the most of your employee-owned model
‘This is where having the right leaders in place – who can connect with the ideal yet who also know how to make EO ‘real’ at all levels of your business – is essential.
‘Get this right and that’s how you can become and remain successful, both through transition and beyond.
‘Fundamentally, the Three Rs are about making the most of your ownership model to drive greater performance,’ Jeremy concludes.
‘And this is why the evidence suggests that the most successful employee-owned businesses are more productive, more resilient, have higher morale and lower attrition – and benefit from their ability to take a long-term view.
‘This was the clear finding of the eoa’s landmark EO Knowledge Programme last year. It’s exciting to see how this important research is now informing the drive to build a thriving EO sector in the UK – including its role in the new EO Framework, which our Telos Partners colleagues helped develop for the eoa.’
Want to explore how JGA could enable your business to make the most of being EO? Book a no obligation meeting with us now.
Leadership succession – what every EO business should know
Leadership succession planning is a key challenge for every business – and not something any of us would choose to do ‘on the hoof’.
Yet ‘on the hoof’ is how the leadership succession process is likely to be unfolding in many companies today.
It’s easy to see why.
The economic environment is tough, so if you’re a business owner who’s chosen employee ownership (EO) for your exit strategy – or an MD picking up the reins – finding the time and resources to plan a smooth leadership succession can be hard.
Getting the timing right
Jeremy (far left) with business founders he has supported – Chris Barrington Brown (Cunning Running), Neal Criscuolo (NC2) and David Sproxton (Aardman)
Yet, as our MD Jeremy Gadd says: ‘Planning your own succession is one of the greatest responsibilities a leader of any business can have.
‘One of the first things to recognise when stepping into a new leadership role is that your time is limited and it’s important to plan.’
Jeremy’s view reflects what he’s learned from supporting a wide range of founder owners – and their successors – to navigate the succession process over the last 10 years.
He has also seen effective leadership succession in action through his role as an Independent Trustee.
He says: ‘In my experience, the leaders who have achieved the smoothest successions are those who have started thinking about it long before it’s crossed anyone else’s mind.’
Creating a foundation for success
So timing has a role to play. But how else can you prepare yourself and your EO business for a successful transfer of the reins?
The first step is to get informed. Understand the challenge of leadership succession – and what’s at stake.
The ‘The Road to Succession: Exploring Leadership Succession in EO businesses’ report is a good place to start.
JGA and Telos Partners co-delivered this major project on the transition of leadership in employee-owned businesses for the Employee Ownership Association (EOA, carrying out the separate interviews with 40-plus former owners and successors on which the Road to Succession’s findings are based.
Learning from experienced hands
‘I’d recommend the Employee Ownership Association’s ‘Road to Succession’ report to any founder or MD who’s leading an employee-owned business today’
Jeremy Gadd, MD, J Gadd Associates
The result is an invaluable piece of research that spotlights what works (and what doesn’t) with practical insight and guidance for those planning, or undergoing, leadership succession in their own EO business.
This includes top tips from founders and MDs with lived experience of the challenge, ranging from getting started early and setting a realistic timeline to not being ‘afraid’ to ask for support.
The fact that the Road to Succession report draws on the first-hand experience of the 20-plus EOA member companies who took part sets it apart.
‘I’d recommend this report to any founder or MD who’s leading an employee-owned business today,’ Jeremy confirms. Download the Road to Succession report here.
Investing in the right support
Telos presents the report’s findings at the EOA Conference 2023
So you’ve read the report – what next? The second step is to seek the trusted support you need to guide you through this part of the journey.
After the Road to Succession report was published, Telos Partners’ Adam Campbell and Alex Bloom shared the key findings in a packed session at the EOA Conference 2023.
‘The number of people who attended the session reinforced the importance that employee-owned companies place on leadership succession,’ Alex says.
‘Feedback from the event pointed to the benefit of being able to tap into experiences and insights from businesses who have already navigated their way through leadership succession.’
Jeremy agrees.
‘Getting your succession planning right is an important responsibility for every business leader,’ he concludes. ‘The key is to start thinking about it long before anyone else so you can prepare yourself and your business for the time when you’ll no longer be there.’
Find out how we can support your EO business to plan and navigate your leadership succession. Get in touch with us now.
JGA @ the EOA’s Robert Oakeshott Lecture 2024
‘Today, everything you did was about three motivations…’
Who knew? But then the Employee Ownership Association’s annual Robert Oakeshott Lecture is meant to be thought-provoking – and 2024’s speaker Matthew Taylor, CEO of the NHS Confederation, didn’t disappoint.
JGA’s Katy Perceval and Libby Unsworth at the event
The lecture, held at London’s Bayes Business School last week, celebrates the life, legacy and work of the EOA’s founder Robert Oakeshott.
As well as the chance to hear Matthew speak, it was a great opportunity for EOA members to network with each other and the EOA team who had travelled from Hull.
Making the case for co-ownership
A packed theatre listens to Matthew Taylor speak
So why was Matthew invited to give this year’s lecture?
In his previous role as Chief Executive of the Royal Society of Arts (RSA), he wrote 2017’s ‘Good Work’ report – an independent review of modern working practices – for the government.
His 2021 book ‘Do we have to work?’ went on to re-examine our ideas about work and its relationship to our social and personal lives.
Both make the case for employee ownership and other co-ownership business models.
Taking to the stage, Mathew began by asking: ‘Why is change difficult?’ and how we might think differently about our approach. How indeed?
Exploring what motivates us at work
‘The most successful organisations are those that manage to achieve a balance of all three motivations [individuality, solidarity, hierarchy]… which employee-owned companies have the capacity to do’
Matthew Taylor, CEO of the NHS Confederation
He explored the ‘three motivations’ (individualism, solidarity and hierarchy) that drive everything we do – and outlined why employee ownership (EO) has a ‘substantial advantage’ in relation to human motivation, dynamism and social change.
But he also pointed out that although EO can provide a strong foundation, it’s not enough to guarantee success.
Instead, the key to achieve chosen goals is to both ‘combine and align’ all three motivations – avoiding a ‘monoculture’ or ‘deficit culture’ where only one or two are expressed.
‘The most successful organisations are those that manage to achieve a balance of all three motivations,’ Matthew explained – something he believes ‘employee-owned companies have the capacity to do’.
Even if ‘having all the ingredients in the kitchen doesn’t mean getting the recipe right’!
Topics raised in the Q&A that followed ranged from how to change a ‘deficit culture’ to whether generational differences might influence the way the motivations are expressed at work.
The value of a shared purpose
JGA’s Katy and Telos’s Alex Bloom meet in person for the first time!
JGA Associate Libby Unsworth and Comms Support Katy Perceval both attended the event. Alex Bloom, Consultant at Telos Partners, was also there.
JGA is in the process of merging with Telos, following our exciting announcement last year.
‘Matthew’s lecture was about the heart of what it means to be EO – values which clearly aligned to his own,’ says Libby. ‘It was my first Robert Oakeshott lecture and I enjoyed an insightful and thought-provoking afternoon.’
Katy agrees. ‘These in-person events have a different vibe to online, and Matthew’s ideas certainly gave me food for thought. I could see how the motivations he described influence my own work and other areas of my life.
‘Naturally, it was fun to catch up with Libby, meet Alex and chat with familiar and new connections too.’
Alex also enjoyed the event, especially ‘catching up with EOA members and hearing how they and their businesses are doing’.
‘It was a very engaging and thought-provoking lecture from Matthew,’ he says. ‘I was interested to hear his ideas around the importance of aligning individualism, solidarity and hierarchy to achieve successful organisational change, and the central importance of having a shared/common purpose.’
Want to know how our Transition, People and Governance services can support your EO business?
EOA Conference 2023 – our key takeaways
Wow, what a two days! Thank you, Liverpool, and thank you to the Employee Ownership Association for a conference that was focused, fun and full of fresh thinking – definitely one not to be missed!
Team JGA ready for action on our stand
This was the verdict of our team, with our MD Jeremy Gadd describing 2023’s national gathering of EO’s movers and shakers as ‘the EOA’s most successful conference to date’.
Well, that’s certainly how it felt…
Why? Because the packed agenda included keynote speeches and debates from high-profile business leaders, alongside workshops, discussions and a celebration dinner which saw the winners of this year’s UK Employee Ownership Awards revealed.
Woking together with Telos’s Adam Campbell (back right)
The mix of 800 founders, leaders, employee owners, trustees and expert providers also ensured the conference was, once again, the place for JGA’s team to network, learn and share our insight on today’s priority EO topics.
The conference’s timing was also perfect for us, as it came hot on the heels of our announcement that JGA is to merge with Telos Partners.
This made our Platinum Exhibitor stand the ideal place for us and our new Telos colleagues to connect with clients and our trusted partners together, building on the great response we’ve had.
Celebrating the best of EO
One of the conference’s keynote speeches
So what were our key takeaways?
‘It was encouraging to see just how well the EO community is responding to what has been a challenging year for so many,’ says Jeremy.
‘The conference’s record attendance reflects how employee ownership is growing – I particularly enjoyed re-engaging with previous clients and familiar friends, as well as establishing new relationships with those who have recently become employee-owned.
Our JGA and Telos teams enjoy the celebration dinner
‘We had some great conversations, and there’s always something new to learn and celebrate,’ he adds.
‘This year the icing on the cake for me was our client LUC being named ‘Employee Owned Business of the Year’ at the EOA’s UK Employee Ownership Awards. I was also delighted for our trusted partner Stephens Scown when their Employee Trustee Sam Moles was named Employee Owner of the Year.
‘What a fantastic night for all who were there.’
Creating a culture of active ownership
Our MD Jeremy Gadd with Lucy Gara from LUC
The delegate sessions were another highlight for Jeremy, who co-delivered a packed workshop on ‘Demystifying governance’ with Employee Trustee Lucy Gara from LUC.
Lucy ‘really brought governance to life’, Jeremy says, during a session that highlighted the vital relationship between the Main and Trust Board and the role of ‘active ownership’.
Jeremy also enjoyed attending another workshop run by our Associate Garry Davis. ‘Making the founder redundant’ focused on a topic in which he’s long had a special interest: the founder’s journey as they relinquish control of their business and the behaviours of leadership successors as they step up.
‘Without doubt, one of the most challenging changes during the transition to EO is when the founder/owner has to let go,’ Jeremy says. ‘It was great to have Garry leading this session, as it enabled us to explore this aspect of the EO journey in a really interesting and useful way.’
Spotlighting the succession benefits of EO
Full house as Telos presents ‘The Road to Succession’ report
Jeremy was also delighted to see two important pieces of EO research in which JGA has been involved get their first proper ‘airing’ at the conference. Both were released on 21 November.
Alex Bloom, one of our new Telos colleagues, shared valuable insight around the importance of succession planning, following our joint project on the transition of leadership in employee-owned businesses for the EOA.
Want to know more? Read about ‘The Road to Succession: Exploring Leadership Succession in EO Businesses’ here.
And Ownership at Work were able to use the conference to share more from ‘Generation EO: The Great Succession Opportunity’ – a project which was supported by the EOA and Federation of Small Businesses, and co-sponsored by JGA.
Read more about ‘Generation EO’ here.
The ‘go to’ place for all things EO
Lanyards at the ready for our MD Jeremy and Associates Lisa Fryer and Corrine Thomas
So, all in all, this year’s EOA Conference certainly lived up to its goal of being the ‘go to’ place for all things EO.
It was two days during which the EO community did what it does best – share its insight, experience and fresh ideas to strengthen EO’s commercial and cultural relevance as the sector continues to grow.
EOA Conference 2024? We’ll be there!
Want to know how we can support you with our EO transition, people and governance services? Get in touch.
JGA to merge with Telos Partners
Merger will enable us to provide even greater value for clients looking to leverage the benefits of EO…
JGA is delighted to announce that we will be more closely aligning our business with Telos Partners from 31 January 2024 – ahead of a full merger from January 2025.
Adam Campbell, Managing Partner, Telos (back row, centre) with our MD Jeremy Gadd and team
The merger builds on the relationship JGA and Telos have developed over the last four years, during which we have successfully collaborated to provide support to the Employee Ownership Association (EOA) and its members.
Our companies will initially focus on two key areas: providing our clients with access to a wider range of support and services to transition and accelerate their employee ownership (EO) while merging our back-office functions.
Both brands and organisations will continue to co-exist while we look to merge these more fully over time.
JGA’s founder Jeremy Gadd will remain MD of JGA for the foreseeable future, while joining Telos as a Partner from 1 February 2024.
Delivering greater value for our clients
So why are JGA and Telos merging – and why now?
Our experience of working together – specifically on the EOA’s EO Learn programme and, more recently, on an EOA project designed to benefit the sector as a whole – has encouraged us to make the most of opportunities where we know that, together, we can deliver more value and impact for clients.
With JGA approaching our 10th birthday (January 2024) and both businesses’ positive experience of working even more closely together, it became clear that the time was right to merge.
As Jeremy and Adam Campbell, Managing Partner, Telos Partners, explain: ‘We share a strong belief in the potential of employee ownership to create successful, sustainable organisations that better generate and more fairly distribute wealth.
‘The decision to merge will enable us to leverage JGA’s unrivalled experience of EO transitions alongside Telos’ deeper experience of larger organisations to better support clients to transition to, embed and realise the fuller, longer-term potential of EO.’
Shaping our future together
JGA and Telos’ existing clients, Trusted Partners and other key stakeholders have all been contacted by Jeremy and Adam ahead of today’s announcement.
Both businesses’ Employees, Associates, Associate Consultants and Partners have also been reassured that there will be no initial change to any existing client work or contractual relationship they have with either Telos or JGA.
Over the first 12 months, our teams will work even more closely together, sharing experiences, supporting clients and each other, while Adam and Jeremy’s focus will be on the sustainable, profitable growth of our combined business.
As they explain: ‘We strongly believe there will be ongoing opportunities for all beyond the initial transition period, if this is what people want. Our combined future is very much ours to own.’
Want to know who Telos are and what they do? Find out more on their website here.
You are also very welcome to come and see us on the JGA exhibition stand at this week’s EOA Conference (27 and 28 November 2023), which both our businesses are attending. We look forward to seeing you there.
'Generation EO': why this new report matters if your exit strategy is EO
Thousands of SME owners plan to exit their business in the next five to 10 years – with many citing the wish to retain their existing workforce and maintain business continuity as priorities. Yet understanding of employee ownership as a succession option that could provide many of the things they want remains comparatively low.
This is one of the key findings revealed in a new report into EO and succession planning released today.
‘Generation EO: The Great Succession Opportunity’ was commissioned by Ownership at Work (OAW), with the support of the Employee Ownership Association (EOA) and the Federation of Small Businesses (FSB).
JGA is delighted to be one of Generation EO’s co-sponsors, with our MD Jeremy Gadd describing it as ‘exciting evidence of the employee-owned sector’s potential to grow’.
Building awareness of EO
The release of Generation EO strengthens the body of data-based research now available on the UK’s employee-owned sector, including the EOA’s ‘Knowledge Programme’ (published last month).
‘At JGA, we’ve long recognised the opportunities in EO models to increase employee retention and engagement, support business continuity and enable sustainable growth and entrepreneurial risk taking,’ says Jeremy.
‘This report shows how useful an increased awareness and understanding of employee ownership would be to company owners exploring alternative options for their succession planning.’
Understanding the size of the opportunity
Aardman, which our MD Jeremy (right) visited this autumn, features in the ‘Vendor’s Experience’ section of the report
For Generation EO, Ownership at Work commissioned DJS Research to survey 500 businesses, with the focus on SMEs.
This part of the research was designed to deepen understanding of the ‘great EO succession opportunity’ expected in the next five to 10 years.
Alongside this, OAW carried out its own in-depth interviews with business owners who had already sold to their employees.
Ten vendors, ranging from Clean Tech Services and Aardman to B-Loony and Hartland Shipping, were asked to share their first-hand experience of transitioning to EO.
Areas covered included their motivations and practical tips for other company owners considering the same.
Securing expert support
Associate Lisa Fryer led JGA’s involvement in the report
Our Operations Manager and Associate Lisa Fryer, who led JGA’s involvement as co-sponsor, is impressed with the quality and depth of information that the teams at DJS Research and OAW compiled.
‘Every advisor would benefit from understanding the detail covered in Generation EO, and considering their own plans to support this potential as EO awareness continues to build,’ she says.
‘At JGA, we’ve developed a broad selection of commercial and cultural services as a direct result of listening to our EO clients’ needs – ranging from EO perception studies and health checks to strengthening trust board effectiveness.
‘We also offer support with main board development, independent trustee resourcing and governance reviews. Generation EO has given us even more useful (and exciting!) food for thought.’
Learning from the experience of others
‘The ‘Generation EO’ report shows there are so many numbers that just stack up as positive reasons for employee ownership to be seriously explored by every business owner as part of their succession planning’
Lisa Fryer, JGA Operations Manager and Associate
Lisa reveals that one part of the report she particularly ‘loved’ was the ‘Vendors’ Experience’ section, with its mix of businesses sharing their stories of transitioning to EO.
‘It's great to see the range of business size and values featured, clearly setting out how moving to an EOT is worth consideration.
‘This will definitely be a useful and influential report for the EOA team to reference with policy makers and advisors,’ she adds.
‘It shows there are so many numbers that just stack up as positive reasons for EO to be seriously explored by every business owner as part of their succession planning.’
Recognising the scale of change
Lisa was also struck by the scale of the change predicted in the next five to 10 years as a result of succession planning across SMEs, describing it as both a challenge and an opportunity.
‘What really stood out for me was the possibility that EO offers as a viable succession plan for literally thousands of smaller businesses across the UK,’ she concludes.
‘With so many vibrant and successful businesses carving out their niche in communities all around the country the question is: how do we best inform and support them to unlock the potential employee ownership offers? I know we'll be giving this some serious thought at JGA.’
Want to read the full report? Download ‘Generation EO: The Great Succession opportunity’ here.
To find out how JGA could support you to explore employee ownership as a succession option for your business, get in touch.
Guest Blog: What does 'good EO' mean?
At JGA, we work alongside a small number of carefully-selected Trusted Partners – chosen for their shared commitment to the clients we serve. In this guest blog, we ask Gavin Poole, Corporate Partner at Stephens Scown, for his view on what ‘good EO’ means today – and why Stephens Scown’s story shows how it can evolve.
Stephens Scown’s enthusiastic team
Gavin writes…
Being ‘good’ at something does not necessarily mean that you excel at it, or does it?
Whether it is a sporting event, the behaviour of a child or the performance of a business, it is likely that ‘being good’ could always be bettered.
At its base level, ‘being good’ might mean ‘being not bad’. For example, in the context of employee ownership, while the tax treatment is an incentive, if the reason for such a transition is purely tax-driven, that might be regarded as ‘bad EO’.
Being ‘good’ is going to be a relative term that may be judged by certain hallmarks.
Gavin Poole, Corporate Partner, Stephens Scown
Striking the right balance
In the context of an employee-owned business, ‘basic’ includes some structures that would not otherwise be seen in non-employee-owned businesses.
For example, an EO business is likely to have employees engaged (to a greater or lesser degree) in decision-making, a profit share distribution, an employee on the trust board… and so on.
While beneficial, could those structures (or the way they are used) be bettered? An ambitious business might say that being ‘good enough’ is not (in fact) good enough.
There is always going to be room for improvement but with possible implications.
For example, the reach for a better profit share might be at the cost of worsening working conditions. A balance will need to be struck.
The role of governance
‘Certainly, the journey of Stephens Scown (from being one of the top 100 businesses to work for), moving to an employee ownership model (with the benefits that this delivers) and most recently achieving BCorps™ accreditation… shows how ‘good’ can evolve’
Gavin Poole, Corporate Partner, Stephens Scown
And the balance tends to be the domain of the leadership of the business.
Good governance will help with setting a clear strategic direction, create lines of communication and reporting, accountability and boundaries – with flexibility to adapt as times change.
And ‘good’ might look very different from one perspective to the next.
At a time where employee retention and business resilience is becoming ever more important, recruits are looking more and more at the values of businesses and the extent to which they might be ‘good’ (or perhaps more accurately ‘appealing’).
An evolving journey
Certainly, the journey of Stephens Scown (from being one of the top 100 businesses to work for), moving to an employee ownership model (with the benefits that this delivers) and most recently achieving BCorps™ accreditation (which measures high standards of social and environmental performance, transparency and accountability) shows how ‘good’ can evolve.
So perhaps ‘good’ is a relative measurement that needs to be seen in the context of delivery of specific aims, whether that be a gold medal or behaviour at a family event. ‘Good EO’ is likely to start with good governance that defines a clear strategy which is well communicated to a workforce that is engaged in delivery.
It can be tough to deliver ‘good’; exciting to discover ‘good’; for a true evolution, the conditions should be in place for each person to be able to move the business to ‘better’. Perhaps that is ‘good EO’?
Stephens Scown is an award-winning South West law firm with offices in Cornwall, Devon and Somerset. It has been employee-owned since 2016 and has a strong track record of successfully supporting company owners through the legal transition to employee ownership.
Find out how JGA supported Stephens Scown to unlock the benefits of its own EO model in our case study.
Read more about Stephens Scown on their website or get in touch with them directly via the link below.
Suite TV announces move to employee ownership
JGA supports Suite TV in their transition to EO
We are delighted to share the news that Suite TV have become employee-owned. The award-winning television post production company responsible for providing editing facilities to the nation’s favourite comedy programmes became the latest business to join the employee ownership community.
This week’s announcement reveals that 100% of shares have been transferred into an Employee Ownership Trust (EOT) on behalf of all their employees.
JGA’s MD and Founder Jeremy Gadd and our Associate Corrine Thomas have supported the founders’ ambitions to transition the organisation to an Employee Ownership Trust (EOT). From the initial contact made during a networking session earlier this year, the last five months have seen a great deal of planning and preparation to which Jeremy and Corrine have been able to add clarity and guidance throughout.
Suite TV provides editing facilities for a number of well-known national comedy programmes, including the popular ‘Have I Got News For You’ (with Ian Hislop and Paul Merton), critically-acclaimed ‘Afterlife’ (penned by the irrepressible Ricky Gervais) and ‘Not Going Out’ (the second longest running British sit-com). The team were also involved in editing the recent groundbreaking documentary drama ‘Partygate’.
At a staff meeting of the 40 employees this week, Julian Aston, Suite TV’s Chairman and Founder, announced this monumental news at the company’s headquarters.
Julian said: ‘The decision of the founder shareholders to sell their shares to the newly-formed Suite Employees TV Trust was the very best way to ensure the future of the business, and that by passing the ownership to the staff, the long-term future of the business was secured.’
Shelley Fox, Founder shareholder and Managing Director, said: ‘We looked for years to find the right succession strategy and employee ownership will, I hope, mean that we pass the baton on to our brilliant young and talented staff.’
The transition to employee ownership has taken more than three years, and Suite TV was assisted in this journey by William Franklin of Pett Franklin, Jane Jeavon of Legal Clarity as well as Jeremy Gadd of J Gadd Associates. JGA have been retained by Suite TV for a further nine months to support and guide the transition journey. Suite TV are full members of the Employee Ownership Association.
For any further information on Suite TV, please contact Julian@suitetv.com
Defining your legacy when your succession plan involves EO
It happens, in businesses large and small across the UK. At some point most company owners will recognise that their time, energy or enthusiasm for leading a business will run its course and, as they explore succession options, some of those will choose EO.
The 2014 Finance Act has certainly encouraged many founder/owners to see EO as an ideal option, even if the tax incentive it offers is now under HMRC review. There’s also the attraction of the advantages EO offers them, their employees and customers when it’s done well.
Yet there’s another aspect that’s important here – recognising the major part they play in their business’s success. Finding how to hand on your experience and drive in a way that’s useful can be a real challenge.
One approach is to capture your reflection in a legacy document, which can be used by you or others to shape your guiding principles, mission and values. The late Sir Ove Arup, founder of Arup, epitomised the value of creating and sharing these insights in his Key Speech.
More recently, Guy Singh-Watson of employee-owned Riverford Organics has become another good example of how to define your legacy as part of stepping away. His decision to sell his final stake to an EOT was national news in May (2023).
So if you’re a company owner juggling the ‘here and now’ with mapping your future, where do you start?
Understanding what you want to achieve
JGA’s founder and MD Jeremy Gadd
Our MD Jeremy Gadd has worked with many clients whose succession planning includes EO and says he has ‘yet to meet’ anyone who has found creating a legacy document easy.
‘As a founder/owner, there are things you need to know and things you need to understand about employee ownership,’ he explains.
‘You need to know the technical and practical steps to becoming employee-owned – the legal and financial aspects of this change. Once you know that, you need to understand what you’re trying to achieve by using an EOT for your succession model.
‘It’s helpful to clarify what’s important for you and the people you care about. What’s important for your employees, your business, your stakeholders, your customers? And what will the impact be?
‘First, you have to start with yourself and your partner/family, if you have one. It’s not selfish. If you don’t get yourself into a place that will work for you psychologically you’ll risk messing things up. Sharing your thoughts through a legacy document can be a helpful place to start – if not for you, then certainly for your successors.’
‘The purpose of your legacy document is to effectively capture what has made your business successful. If you can identify the key parts of that journey, these can be used by your successor’s successor as a point of reference once you’ve gone. By being independent, JGA can help you do this’
Jeremy Gadd, founder and MD, J Gadd Associates
Reflecting on what’s made you successful
The next step is to reflect on your journey. Not all founder/owners will be comfortable with this kind of language or activity. ‘Often they don’t stop and take time to reflect because they will have been so busy building the business,’ Jeremy agrees.
‘That’s why doing this with someone independent with no vested interest or hidden agenda can be useful. The process of creating the legacy with the support of an experienced specialist can help to create a ‘good ending’ as you prepare to let go.
‘The purpose of your legacy document is to effectively capture what has made your business successful. If you can identify the key parts of that journey, these can be used by your successor’s successor as a point of reference once you’ve gone.
‘By being independent, JGA can help you do this. The questions we ask will enable you to create a legacy document that can be used to design your guiding principles, influence your values and build tools that can evolve.
‘This sets your business up to continue to be successful without restricting its ability to adapt the way it operates in years to come.
‘Your legacy document is a point in time, your opinion and view that will never change,’ he adds. ‘It’s okay that this is your interpretation because you’re the one who’s built your business, even if you’re the second or third generation of a family business. Your legacy is how you have taken it forward to hand over to a new ownership model.’
Focusing on the future when you’re not there
So what should you be considering if you want to create a sustainable legacy through EO?
‘Although this process is about personal reflection, it’s important to depersonalise certain elements of it too,’ says Jeremy.
‘Employee ownership is a long-term view. Think about a time when you won’t be there, think about your successor’s successor. What will it be useful for them to read?
‘Doing this won’t just help to create your legacy document: the process of moving your mind from the transactional ‘here and now’ – which can be intense – to ‘future focusing’ is also very useful.’
Using the legacy process to deliver better outcomes
‘My [Henley Business School] research showed me that, whether they’re leaving the business or not, the founder/owner’s readiness and understanding was crucial to the transition’s longer-term success’
Jeremy Gadd, founder and MD, J Gadd Associates
Jeremy speaks not just from his practical experience of supporting founder/owners to prepare to ‘let go’, but from the broader knowledge he’s gained through his research into the impact of succession planning through EO.
In fact, he enjoys this part of his work so much that he wrote his Henley Business School Msc dissertation on ‘The impact on leaders when their businesses become employee-owned’.
‘My research showed me that, whether they’re leaving the business or not, the founder/owner’s readiness and understanding was crucial to the transition’s longer-term success,’ he explains. ‘I saw how the process of creating a legacy document can help to deliver better outcomes as the business becomes EO.’
Today, as a founder/owner himself, Jeremy knows first-hand the highs and lows of building a business.
‘To have the privilege of hearing other founder/owners record this and facilitate their exploration goes to the heart of why I created JGA,’ he reveals. ‘It can be challenging: I can’t give them the ‘answers’ – it’s their legacy, not mine – but I do say ‘don’t do it by committee’!
‘If there’s more than one founder/owner, create more than one legacy document. This is your thinking and knowledge at this point of time.’
What should you do next?
At JGA, we have a proven track record of enabling founder/owners to prepare themselves and their people for a successful transition to EO.
We can also support you if you’re considering EO as one of several options for your exit strategy and the future of your business. As independent change consultants, we are experienced at providing knowledge, insight and support during challenging times.
Want to know more about how our Transition, People and Governance services can support you and your organisation? Get in touch.
Trustee Connect – supporting Employee Trustees to add value and grow
It’s always good when something you’ve created starts to grow, so it’s no surprise that our Associate Kathie Robb is more than happy to talk about Trustee Connect.
Trustee Connect is JGA’s insightful open forum for Employee Trustees who want to network, share best practice and explore common challenges together in a confidential online space. Launched in 2020, it’s free to all our current/former clients, with the friendly quarterly meetings lasting 90 minutes each time.
Kathie gets ready for Trustee Connect
Kathie has been involved from the start when Trustee Connect was just an idea. It was sparked by JGA’s recognition of the often solo nature of this hugely responsible yet frequently misunderstood role, following our MD Jeremy Gadd’s conversations with Employee Trustees across a wide range of EO businesses.
Today – coffee cup to hand – Kathie enjoys facilitating the network’s regular meetings, with others from our team logging in to offer their insight, if required.
A safe and confidential space
‘We started Trustee Connect to provide a safe space for Employee Trustees to explore the role with others and build a network for support or advice,’ she explains.
‘Often, Employee Trustees are asked to take on the role or are selected/voted into it before they – and sometimes the business – really know what it entails. This means they might be confused about what they are there to do and how to do it, while having few people to discuss this with.
‘With Trustee Connect, we began small and quickly realised we were offering a valuable and much-needed service. Since launch, we’ve seen both JGA’s client numbers and the invitees to our sessions grow exponentially.’
Exploring common issues together
Attended by a mix of experienced and new-in-post Employee Trustees, today’s meetings are certainly never dull…
Recent hot topics have ranged from the challenge of ‘wearing two hats’ (day job plus board-level position) to how to ask affective questions. ‘We always have a lively, entertaining and useful session,’ Kathie confirms.
Conversations are often focused around the newer attendees and the questions they have – including what they can (and can’t) do as a member of the Trust Board.
‘There’s been much discussion around how to work with fellow Trust Board Directors and particularly the Chair, and how to build knowledge and understanding of the Trust Board and its activities with their work colleagues,’ Kathie says.
‘It’s so interesting that whatever the size of business, type of industry and EO model they have, the challenges, questions, experiences and debates are all very similar.’
Demonstrating a passion for their business
‘We’ve come across businesses where investment in the Trust Board’s capability is a high priority – here, it’s pretty obvious that the Employee Trustees’ confidence and knowledge of the role and their responsibilities is impressive…[and] the benefits are clear for both the individual and the business’
Kathie Robb, JGA Associate and facilitator, Trustee Connect
So has anything surprised Kathie about Trustee Connect?
‘Yes,’ she reveals. ‘I’m constantly surprised by the willingness of individuals to take the plunge and step into the Employee Trustee role, often without really knowing the full remit of the job and what it entails.
‘However, that demonstrates to me that these are often just the right people to be Employee Trustees – they’re brave, adventurous, willing to stand up and be counted and have such a passion for their business that they’ll give anything a go!’
Recognising the need for support
Of course, not every EOT has Employee Trustees, but those who do know their vital contribution to maintaining sound governance in both newly-transitioned and established EO businesses.
Working in the ‘engine room’ of their business, Employee Trustees must balance the responsibilities of a board director with the demands of their ‘normal’ job.
Yet they can find themselves operating in a vacuum if their business hasn’t recognised the need to support them with the right training and development – or spent time building a wider understanding of the Employee Trustee role across the company as part of an effective Trust Board.
Developing confidence and knowledge
Kathie with JGA’s Jeremy Gadd, who often joins Trustee Connect meetings
‘Most EO businesses are aware of the requirement to set up a Trust Board as they transition into employee ownership and some quickly recognise what the Board is there to do and the value it can add,’ Kathie agrees.
‘Some, however, take it pretty much at face value as an exercise they’re required to undertake, and don’t fully embrace the opportunities a Trust Board presents. Their investment in developing the Trust Board and its members is therefore low on the list of business priorities.
‘In general though, time for personal and team development varies.
‘We’ve come across businesses where investment in the Trust Board’s capability is seen as a high priority – here, it’s pretty obvious that the Employee Trustees’ confidence and knowledge of the role and their responsibilities is impressive.
‘Often, however, the day job gets in the way of taking time out to develop their skills and knowledge and Employee Trustees find it difficult to ask for this time. It’s rare that it’s freely given but, where it is, the benefits are clear for both the individual and the business.’
Strengthening trust board effectiveness
‘In my experience – and having talked with other Independent Trustees who recognise the value of having Employee Trustees on the board – it’s obvious they bring insight, observations and opinions that we wouldn’t otherwise be able to access’
Jeremy Gadd, Independent Trustee and JGA’s founder and MD
So seeing Trustee Connect go from strength to strength has been rewarding, not only for Kathie but for the rest of our team – some of whom are Independent Trustees on Trust Boards where they work directly with Employee Trustees.
Our MD Jeremy is an Independent Trustee with two EO businesses and has seen the difference that effective Employee Trustees can make.
‘In my experience – and having talked with other Independent Trustees who recognise the value of having Employee Trustees on the board – it’s obvious they bring insight, observations and opinions that we wouldn’t otherwise be able to access,’ he says.
‘This can be very useful during testing or stressful times, as well as during periods of significant change where the impact on the front line isn’t always so visible.’
Fresh ideas for a bright future
An unexpected guest at September’s Trustee Connect!
As for Trustee Connect and the future, Kathie is keeping an (excitingly) open mind…
‘We’ll continue the quarterly meetings as they seem to be working well,’ she says. 'We usually have a new cohort of attendees each time, so it’s always fresh and a bit of a voyage of discovery.
‘We think it might also be helpful to invite guest speakers – such as an Independent Chair, a finance expert and a legal expert – at different times to share the benefit of their experience.
‘But essentially, we plan to keep listening to our Employee Trustees to ensure JGA and Trustee Connect can continue to deliver whatever they need.’
Want to join Trustee Connect or know an Employee Trustee who would find it useful? Read our Trustee Connect page and register here.
To find out more about how JGA can enable you to strengthen your Trust Board’s effectiveness, get in touch.
Open now – 2023's UK Employee Ownership Awards!
What does ‘good EO’ mean to you? If you’re not sure but love to learn from the experience of others, you’ll want to check out the winners of the Employee Ownership Association’s 2023 Awards.
You’ll have to be a bit patient though… That’s because nominations for these exciting awards don’t close until 5pm on Friday 15 September (deadline extended), with the winners revealed at a gala dinner on 27 November during the EOA Conference 2023.
This means that if your organisation – or someone you know – is a shining example of ‘good EO’ in practice, there’s still (just) time to throw your hat in the ring.
Celebrating the best of EO
The UK Employee Ownership Awards 2023 are making a welcome return, after the EOA’s EO Stories have ‘held the fort’ for the last few years.
Sponsored by EOA members GLIDE and Gripple, they will celebrate great EO from organisations and individuals, recognising those who have helped to strengthen EO in their business and beyond.
What award categories can you enter?
There are five prestigious awards up for grabs:
EO Transition of the Year – find out more and nominate here
EO Rising Star – find out more and nominate here
Employee Owner of the Year – find out more and nominate here
Employee Owned Business of the Year – find out more and nominate here
The fifth title – The Philip Baxendale Fellowship Award – isn’t open for nomination and will be decided by an expert judging panel instead.
JGA’s Jeremy Gadd and Lisa Fryer at 2022’s EOA Conference
Looking forward to EOA Conference 2023
At JGA, we’re particularly excited about these awards for two very good reasons…
Firstly, because we’ll be exhibiting at the EOA Conference on 27 and 28 November and need no excuse to throw on the gala ‘sparkle’ to celebrate the success of others (we really don’t).
And secondly, because several of the inspiring clients we’re proud to have supported have previously won the EOA’s top awards.
Those recognised for good EO have ranged from Hayes Davidson, who won the award for Outstanding EO Culture at the EO Stories 2022, to The 1:1 Diet by Cambridge Weight Plan, who were named EOA Business of the Year back in 2019.
Those might seem like hard acts to follow, but we know there are some amazing EO companies out there… ready to share their excellent EO practice with the world.
Good luck to everyone who enters – and see you in Liverpool on 27 and 28 November, at the EOA Conference 2023!
Want to enter the UK Employee Ownership Awards? Follow this link to enter by Friday 15 September 2023.
To find out how JGA can support you with our Transition, People and Governance services, get in touch here.
HMRC consultation on EO – what’s your view?
Have you responded to HMRC’s consultation on EOTs and EBTs yet? If not – and you’re an EO business or professional advisor who, like us, supports clients to transition and embed best EO practice – there’s still time to contribute before 25 September 2023.
Why add your view? Because HMRC is keen to gather responses to its proposed changes to the tax treatment of EOTs and EBTs.
The current legislation was introduced in 2014 and created a tax incentive for founder/owners to choose EO when succession planning.
More than 1,400 UK businesses are now employee-owned, most of which are EOTs – up from fewer than 400 EO businesses in 2014. On that score, given the turbulence of recent years, it has been a resounding success.
However, the government wants to ensure that the EO tax regime remains focused on promoting its two original objectives: to reward employees and encourage employee engagement. Hence HMRC’s review.
Welcoming the HMRC review
So what’s our view? Like the Employee Ownership Association and many others who support the EO sector, JGA welcomes the HMRC consultation.
‘It shows the government is prepared to invest time and energy to get the legislation right and secure EO’s long-term success,’ says our MD Jeremy Gadd.
‘JGA’s submission will aim to broaden the focus from simply achieving a successful transaction to ensuring, more widely, that EO transitions are embedded to achieve sustainable growth long after the founder’s departure. For the UK economy to benefit, it has to work for the successor’s successor’
Jeremy Gadd, JGA’s founder and MD
‘JGA’s submission will aim to broaden the focus from simply achieving a successful transaction to ensuring, more widely, that EO transitions are embedded to achieve sustainable growth long after the founder’s departure.
‘For the UK economy to benefit, it has to work for the successor’s successor.’
Adrian Wheale, our board development expert and Associate, Executive Selection, is also in favour of the review.
However, he believes the EO community is looking at it ‘too narrowly’ given the wider context of the government’s White Paper proposals on Audit and Governance. These are currently going through Parliament and, when implemented, are likely to have a significant impact on all businesses, including those that are employee-owned.
Recognising the wider context
As Adrian explains: ‘Until now, HMRC has been, by default, the only de facto regulator patrolling the EO space. However, the White Paper proposals will create a real regulator by proposing that the Financial Reporting Council is replaced by an Audit and Governance Regulator.
‘Although this will be aimed primarily at FTSE companies, EO will fall under its gravitational pull.’
So what does this mean in practice for the EO sector?
‘It means that governance will not only be policed but audited, and significant financial issues of public interest will be tested,’ Adrian says.
‘Valuation, real influence and ownership and related transactions will all potentially be under the microscope. The most significant party of public interest is bound to be HMRC around the legitimacy of the vendor tax break and, secondarily, the tax-free dividend element on an ongoing basis.’
Expecting more scrutiny
Adrian Wheale, JGA Associate and corporate governance expert
Again like many others, Adrian believes the Finance Act 2014 – and, specifically, the Capital Gains Tax break it introduced – has had a ‘massive influence’ on EO’s growth, as it was intended to do.
Worth noting though, he says, is that the Act also enables HMRC to ‘claw back’ any unpaid CGT from the founder/owners should an EO business collapse within three years of being sold to an EOT.
This aspect of the legislation could become relevant in the current case of £700m construction contractor Buckingham Group, which sadly announced that it had ceased trading this month two years after becoming EO.
‘The CGT tax break doesn’t drive everything, but it makes the figures work and has driven demand which is why HMRC will be the most interested party when the new White Paper becomes law,’ he continues.
‘Even if the tax break stays, HMRC will probably become far more proactive via the new regulator and in their own right. Public money is tight and this is a valid target,’ he adds.
‘I’d suggest thinking of the HMRC consultation and government White Paper as a pincer movement.’
Strengthening EO governance and accountability
So what changes would Adrian like to see as a result of the current scrutiny?
‘For me, a good outcome would be that a more robust valuation and due diligence system is put in place at the time of the EO valuation – and that the ongoing corporate governance of EO companies grasps the ‘management of shareholders’ funds’ issue better under Company Law,’ he replies.
‘In parallel with that, I’d like Trustees and EOTs to be better skilled in governance themselves and able to put the appropriate challenge to both founders and executive operating boards / directors from day one of the transaction It's an inevitable consequence of the maturing of the EO domain.’
Encouraging EO companies to add their view
Adrian’s view reflects his long experience as a leading board consultant specialising in board development and review, corporate governance and compliance.
Yet the HMRC consultation is also seeking input from a range of interested parties, including EO trustees and people involved in corporate restructures such as owners of companies that have become employee-owned.
‘HMRC are likely to give quite a lot of weight to representations by companies as suggestions by advisers (however well-informed) can be perceived to be tainted by self-interest, while suggestions… from [EO] companies who have gone to the trouble of making representations cannot be lightly dismissed…’
William Franklin, Partner, Pett Franklin LLP
Within JGA’s own network, William Franklin, Partner of legal specialist Pett Franklin, is particularly keen to encourage companies that have become EOTs to respond to the HMRC consultation before the deadline of 25 September 2023.
‘HMRC are likely to give quite a lot of weight to representations by companies as suggestions by advisers (however well-informed) can be perceived to be tainted by self-interest, while suggestions… from [EO] companies who have gone to the trouble of making representations cannot be lightly dismissed,’ he says.
The 25 September deadline might seem tight but William points out that the consultation is a ‘rare opportunity’ to help shape thinking for companies who consider the EOT model ‘a concept worth promoting and sustaining, and have views as to how employee engagement and responsibility can be encouraged’.
We agree – which is why we’re encouraging our EO networks to contribute to the HMRC consultation too, ahead of the 25 September 2023 deadline.
To do this, click here. Details of how to respond are under the ‘Consultation Process’ section at the end.
Finally, our trusted partner Postlethwaite Solicitors is also planning to provide a formal response to the consultation and is inviting other advisers who’d like to be included to call it on 020 38189420 or email info@postlethwaiteco.com with ‘Government Consultation’ as the subject – by Friday 15 September 2023.
Need our support? To find out more about the Transition, People and Governance services we offer, get in touch.
EO is growing – but what do the figures mean?
‘Oh, wow, that figure is a lot!’ It’s not often a business report sparks a response like this from our MD Jeremy, but the EOA’s 2023 update on the EO sector did just that.
Or rather, part of it did – the news that 90 per cent of today’s 1,400-plus EO companies have become employee-owned since the Finance Act of 2014.
This legislation introduced a tax incentive for founder/owners to choose EO when succession planning. It’s the focus of an HMRC consultation on EOTs and EBTs which is now open for responses until 25 September 2023.
No surprise then that Jeremy was struck by that 90% figure when it was released on EO Day 2023. And we’re sure he wasn’t alone...
Encouraging the growth of EO
‘That’s a lot of new EO businesses in the last nine years,’ he points out, ‘but we haven’t reached a tipping point yet. We’re certainly seeing today’s growth in company transitions reflected in the increasing number of enquiries we’re getting about the support JGA can provide.
‘The government’s policy has succeeded in encouraging EO’s growth, but there are potential risks which is why we welcome the HMRC review.
‘It shows the government is prepared to invest time and energy to get the legislation right and secure EO’s long-term success.’
Yet Jeremy is in no doubt that, although the 2014 Finance Act has facilitated the sector’s growth, the increase in the number of EO companies is being driven by more than the tax incentive of selling to an EOT.
Supporting significant change
‘It may sound counter-intuitive, but I often remind our clients that EO is simply another form of ownership – it’s what you do with it that enables you to achieve more. Transitioning to EO won’t guarantee your business’s future, but it does allow you to continue to be successful by engaging with those who made it the success it is’
Jeremy Gadd, JGA’s founder and MD
‘EO’s undoubtedly meeting a broader need,’ he explains. ‘A significant percentage of the founder/owners we support are concerned about their legacy, their team’s long-term employment and their ability to recruit in a market where EO is a driver for those who assume it’s a better way to work.
‘It may sound counter-intuitive, but I often remind our clients that EO is simply another form of ownership – it’s what you do with it that enables you to achieve more.
‘Transitioning to EO won’t guarantee your business’s future, but it does allow you to continue to be successful by engaging with those who made it the success it is. It can also encourage genuine social mobility.’
The first step is to ensure your company is ‘in the right place’ with a solid business foundation before choosing EO as a succession plan.
‘Becoming EO involves significant organisational change and much of our work involves supporting this delicate part of the transition,’ Jeremy reveals. ‘Once your EO is embedded, you can accelerate the benefits of being employee-owned.’
Unlocking the potential of your people
So what else in the EOA’s 2023 report caught Jeremy’s eye? The fact that the top five sectors for EO remain unchanged, he says.
So why are more businesses in Professional Services, Manufacturing, Construction, Wholesale and Retail Trade plus Information and Communication employee-owned than other industries across the UK?
‘I expect this is nuanced, but what do these sectors have in common? There’s a significant element of ‘people relationships’ here,’ Jeremy suggests. ‘Done well, EO encourages greater engagement. To achieve that you need greater education, so people become more educated and empowered too.
‘For Professional Services, I’d look at EO’s appeal as a succession model,’ he adds. ‘Many are LLPs and for LLPs succession is a challenge, because who can afford to buy into the practice? It’s an important and live conversation right now.’
Clarifying your story and beliefs
The Guardian breaks Riverford’s latest news in May
So, when it comes to sectors, are Riverford Organic Farmers and Go Ape the exception rather than the rule? Both have become EO since 2018, with Riverford’s founder Guy Singh Watson selling his remaining shares to the EOT this summer to make his farm 100 per cent employee-owned.
Jeremy worked with Guy during the early stages of his EO journey and has followed Riverford’s story with interest ever since.
‘With Riverford and Go Ape, both have a strong belief in their businesses and are very values-led. Historically, if you look at the John Lewis Partnership or Scott Bader, their founders Spedan Lewis and Ernest Bader also had a clear narrative about what employee ownership could mean.
‘If we want to broaden EO’s appeal, we need to identify the organisations who are genuinely values-led but have yet to engage with this model. EO might be growing but we haven’t hit a tipping point yet.’
Promoting sound EO governance
And what about governance? Large-scale failures of this in non-EO organisations have been headline news in recent years, spotlighting the impact on people and reputation when leadership accountability isn’t strong.
The good news is that the EOA’s 2023 report confirms that 97 per cent of EO businesses have at least one form of employee governance, while 74 per cent have at least two.
JGA has a proven record of enabling EO businesses to establish sound governance, whether that’s by building Trust Board effectiveness or ensuring employee representation is strong.
The size of the challenge
Jeremy and JGA Associate Pip Meaden have both enjoyed getting out to support EO clients this summer
And, finally, size – the UK’s 50 largest EO companies now employ more than 180,000 (combined) employees between them. But there are 1,400-plus EO businesses in total, so what about them?
At JGA, we work with clients whose teams range from five to several hundred employees. ‘It’s important to recognise that different organisations are grappling with different challenges,’ Jeremy says. ‘What does it mean to you to be EO? That might be an easier concept to navigate with a smaller team. The space in which a business operates will influence the discussion too.’
Either way, Jeremy is excited by EO’s opportunities at a time when interest in a more sustainable way of doing business is building: ‘We’re certainly in for an interesting 10 years.’
Want to know how our transition, people and governance services can support your EO business? Get in touch here.
How to strengthen your Trust Board in challenging times
Are you an Independent Trustee or in a business with one, or more, on your board? If so, you’ll understand the difference the right Independent Trustee can make, thanks to the critical support and independent oversight they bring.
At JGA, we appreciate Independent Trustees too – not least because three of our team have first-hand experience of the role.
Our MD Jeremy Gadd, Associate Philippa Meaden and Operations Manager Lisa Fryer all hold this position on a range of EOT Trust Boards. Lisa is particularly excited (as are we!) because she has just taken on her first Independent Trustee role – at EO manufacturing company Pym & Wildsmith.
Supporting the next step on your EO journey
Through JGA, Lisa was already supporting Pym & Wildsmith to navigate their transition from family-owned business to employee ownership, but has handed over that work now she is Chair of Trustees.
‘It feels quite a privilege to be appointed as an Independent Trustee and I am excited to be joining the team as they really get to grips with embedding their employee ownership across the business,’ she confirms.
‘I can’t wait to get stuck in and make an impact in this new role.’
‘I’ve seen the journey the whole team has been on to get to this point, both physically and emotionally, so I’m hopeful I can bring this understanding to a different role and support them on the next step in their employee ownership story.’
Lisa Fryer – Pym & Wildsmith’s new Independent Trustee
Ensuring your governance is strong
But every EO company is different, so how do you find the best Independent Trustee for your business? Someone who can listen and contribute usefully to your board’s (often complex) conversations, asking the crucial questions that keep your governance strong?
At JGA, we can help.
We have a track record of working with clients not just to find the highest-calibre Independent Trustees but also to strengthen their Trust Board effectiveness in the longer term. Here’s what we do.
1. Finding the right Independent Trustee for your business
A good Independent Trustee brings independence of thought, a fresh pair of eyes and the ability to ask the simple questions that invite people to think in a different way.
We source high-calibre Independent Trustees for forward-thinking EO organisations – in partnership with leading executive search business Russam.
Read about our Independent Trustee Resourcing service (including how to register if you’re looking for your next Independent Trustee opportunity) here.
2. Enhancing the effectiveness of your Trust Board
A strong EO Trust Board adds even more value in tough times, with its oversight of risk and role as a conscience for the executive board providing a positive support for effective decision-making.
We enable businesses to build Trust Boards that actively make a difference – adding assurance that your governance is strong. It’s good practice to check in regularly and revitalise your governance if needed, whatever stage of being EO you’re at.
Read about our Trust Board effectiveness support here.
‘A good independent Trustee brings independence of thought, a fresh pair of eyes and the ability to ask the simple questions that invite people to think in a different way. We source high-calibre [people] for forward-thinking EO organisations…’
J Gadd Associates
3. Supporting your Employee Trustees to develop and grow
Not every EOT has Employee Trustees, but those who do know the value this hugely responsible (often misunderstood) role can add.
Trustee Connect is JGA’s friendly and insightful open forum for Employee Trustees who want to network, share best practice and grow. It’s confidential and free to all our current/former clients, with quarterly online meetings run by our Associate Kathie Robb.
Read about Trustee Connect and how you/your Employee Trustees can join it here.
Kathie Robb runs JGA’s open forum for Employee Trustees – Trustee Connect
Want to know how JGA can enable you to strengthen your Trust Board and business? Follow these links or get in touch.
Riverford's EO journey – what other company owners could learn
It’s been headline news in the business world, and for good reason – Guy Singh-Watson’s decision to sell his remaining 23 per cent stake in Riverford Organics and make the company 100 per cent employee-owned.
Guy’s story shows how a founder / owner can manage the pace and timing of their own exit when their succession plan includes EO.
How Riverford announced Guy Singh-Watson’s news in a Guardian ‘exclusive’ in May
Like many who support the EO sector, JGA’s founder and MD Jeremy Gadd welcomed the news from Devon.
Jeremy worked with Guy in 2018 at the start of Riverford’s transition and has enjoyed seeing how the business and its employee ownership have evolved since.
Is he surprised at the attention Guy’s latest move has attracted? No.
‘This was always his intention and it signals real confidence in Riverford as an EO business,’ Jeremy says.
Recognising the challenge of letting go
Riverford’s national profile, combined with Guy’s commitment to truly ‘live his values’ (he’ll pay full tax on his dividend), have naturally created interest – even more so given recent speculation about large EO companies and their ownership.
Jeremy respects Guy’s honesty about the challenges company owners can face when transitioning control of their business into EO.
‘Finding your way forward [as a company owner] can be a significant challenge. Having the foresight and courage to bring in someone independent to facilitate this thought process can be an effective way to navigate through’
Jeremy Gadd, JGA’s founder and MD
As Guy explains in the Guardian article announcing the sale of his last remaining shares in May: ‘Founders find negotiating this transition to their successors incredibly difficult and painful and most people make a bit of a mess of it… I don’t want to be that person who needs to be told to go.’
The value of investing thought and time
‘Guy’s candidness demonstrates why he was able to do this,’ Jeremy points out.
‘I remember, when we were working with him, witnessing those conversations around how you deal with the loss of something so intrinsically linked to your values and your identity.
‘Finding your way forward can be a significant challenge. Having the foresight and courage to bring in someone independent to facilitate this thought process can be an effective way to navigate through.’
What can we learn from the Riverford story?
So what can other founders learn from Guy’s approach to managing his exit while supporting Riverford’s evolution as an EO business? Jeremy highlights three key insights for company owners considering EO for their succession planning.
1. Understand your legacy and EO journey
You’re transitioning from owner to custodian to handing your company on. What’s your legacy? How do you capture this in a way that’s not only relevant to your successor, but to your successor’s successor too?
‘The fundamental thing about Guy and Riverford is the sense of legacy,’ Jeremy says. ‘As a founder, understanding what’s important to you about the process of becoming EO will help you create the map for your transition and that of your business.
‘This is the one business decision you’ll make that has most impact on you as the owner, and those who can engage the right specialist support are more likely to do it well,’ he adds.
Working with someone independent who understands what you want, but isn’t emotionally engaged in the business, will influence the quality of transition you achieve.
2. Recontract your relationship with the business as it evolves
JGA’s founder and MD Jeremy Gadd
Regularly checking in on and (if necessary) recontracting your relationship with your business will make a significant difference because becoming EO doesn’t just impact you – it impacts your people too.
‘As we see in this latest announcement, Guy is to remain involved as a trustee, NED and spokesperson for Riverford,’ Jeremy explains.
‘I recollect from working with him that he’d created a strong leadership team who were using EO to reinforce the values they felt were important. He invested time and effort in creating the right board, and helped them to understand his vision. He successfully navigated his own exit, trusted himself to make and learn from mistakes, and didn’t underestimate how difficult that is for a founder to do. He’s demonstrated courage in doing that.’
3. It’s clarity – not the size of your business – that matters
EO businesses come in all shapes and sizes and there’s no one way to ‘do’ EO. However, Jeremy’s experience of working with more than 90 companies shows that it’s clarity – not size – that matters most when enabling a smooth transition to EO.
‘So often, employee ownership can seem ‘nebulous’ but when you create a clear narrative for change you’re able to engage people in something tangible,’ he says.
‘Clarity of purpose for the organisation, clarity around how EO will impact that and clarity around your narrative for change – including how you’ll engage your internal and external stakeholders – will really make a difference.
‘It’s about planning for change and project management, regardless of size – and recognising that it also takes time.’
Unlocking the potential of good EO
James de le Vigne, CEO of the Employee Ownership Association, describes Riverford as ‘a powerful example of the potential that can be unlocked through employee ownership’. Indeed, Riverford won the ‘Delivering Good Governance’ category in 2022’s EO Stories Awards.
Jeremy agrees with James, pointing out that when EO is done well everybody understands the responsibility and reward of ownership and works together to achieve more.
‘This means that employees become your talent pool, challenges become opportunities and strategies become reality,’ he says.
‘In my experience, the best EO businesses gain a real commercial advantage by locking in the relationship between responsibility and reward – this can encourage social mobility too.’
He concludes: ‘Having been a supporter, customer and admirer of Guy and the Riverford team, I look forward to seeing them – and their employee ownership – continue to flourish in the years to come.’
Want to know how we can support you and your succession planning with our transition, people and governance services?
Keeping your people engaged and excited about EO
It’s not rocket science. For most of us, the connection we feel to our business is as important as the work we produce. In fact, the quality of the two is often linked.
So if you’re an EO company looking to maximise your potential by strengthening your employee owner engagement, what practical steps can you take?
The first is to recognise that effective employee engagement doesn’t only reinforce your ethos and values – it unlocks commercial benefits too.
That’s because knowledge and awareness can drive positive behaviours such as collaboration, sharpening the focus on key business goals.
In today’s tough economic climate, sharing key challenges such as margin and profitability will always be time well spent.
Communicate openly with your employee owners
As Lisa Fryer, JGA’s Operations Manager and Associate, points out: ‘It's easy to talk about revenue and income targets, but how often do employees hear about margin and profitability? And do they understand the link with employee services and benefits?
‘Openly sharing figures will support your employees’ wider education about their business and can positively impact your ability to achieve commercial goals.’
Lisa speaks from experience. In previous commercial roles, she saw how enabling her team to understand their contribution changed behaviours and added value to the bottom line.
Keep employee owner engagement on the radar
Yet focusing on employee owner engagement can quickly slip off the radar post-transition, especially if other change is afoot. Even without the pandemic’s impact, energy can drift.
Reaching the point of transition can also leave companies feeling they need to step back and draw breath.
Lisa offers this advice: ‘If your business plans to pause, make one commitment, set a deadline for when you will give more attention to culture and stick to it. Explain to employees why there’s a break and when EO will be back on the priority list.’
Refresh your employee owner engagement as you grow
So is it ever ‘too late’ to start engaging your employees in your EO? ‘Definitely not!’ says Lisa.
‘In fact, keeping your employees informed and engaged in your EO is something you need to revisit and refresh over time to ensure your approach is still fit for purpose – so set a review point to check in.’
It’s easy to think that because you have an employee survey with encouraging results, it’s ‘job done’. ‘But if you’re facing into wider commercial or cultural challenges, it can make a huge difference when everyone feels involved and engaged with the changes and goals,’ Lisa explains.
‘We often advise organisations to see their transition as the start of a longer journey, so there’s no need to run headlong into lots of activity right at the start. Instead, pace yourselves and identify the areas of your culture that will have the biggest impact over the longer term first. As your business evolves, other things will naturally change too.’
Practical tips for effective employee owner engagement
So how can you keep your employees informed, engaged and excited about EO? Lisa shares these practical tips.
1. Be clear about your purpose, so employees understand your ultimate focus. This provides a point of alignment and something they can test business successes and decisions against.
2. Establish a strong set of values. These will clarify expectations, help with decision-making and support external stakeholder relationships too. Don’t have them? Involve and engage everyone in shaping them for the longer term.
3. Explain your governance structure, each element’s responsibilities and how they support/challenge each other. Raise the profile of the teams involved and equip them with the skills and information to engage your whole business.
4. If you’re establishing or reinvigorating an employee forum or council, be clear about roles and responsibilities. In smaller companies, it’s usually more effective to hold informal group meetings, such as a bacon butty breakfast for all!
5. Support your middle leadership. They’ll be feeling squeezed as the shift in ownership will change attitudes and expectations. Equip them to be more empowering EO leaders to accelerate embedding your EO.
6. Communicate well and through several channels, investing in new tools or people if needed. As employees share more and influence bigger decisions, the language and culture will shift anyway.
7. Define the key indicators of business success and share regular performance updates. Ensure these cover more than sales and profit, so every employee feels connected to your overall success.
8. If not already a member, join the Employee Ownership Association. Get involved in their activities, networking and learn from others’ best practice, while sharing your own.
Secure the right support at the right time
Employee ownership isn’t a label – it’s a different way of doing business that requires energy and focus to bring to life. That’s why our Associates draw on their own experience to enable EO companies to effectively engage their employee owners.
Our employee owner engagement support ranges from EO perception studies, employee representation reviews and mentoring to EO-focused leadership development (with Telos Partners as part of the EOA’s EO Learn) and our free-to-clients networking forum for Employee Trustees.
Want to know more about how we can support you with our range of transition, people and governance services? Get in touch with us now.
Succession planning and EO – how to fast-track your understanding
Succession planning. Two words, so many options – depending on the size and set-up of the company you own.
So if you’re the founder/owner of an SME or family business who’s considering employee ownership (EO) for your exit strategy, what do you need to know?
And how can you gain the practical knowledge to make an informed decision in a way that is time- and cost-effective, from people with first-hand experience of what it means to be EO?
Accelerating company owners’ understanding of EO
It was these questions that prompted JGA to develop the new fast-track EO Accelerator programme in partnership with the Employee Ownership Association, working alongside experienced legal and financial advisors Triodos and TLT.
‘With the challenges company owners face today, having a programme which accelerates their understanding of whether EO is the right path and – if it is – how to successfully transition their business couldn’t feel more timely,’ says our MD Jeremy Gadd.
He and Associate Garry Davis will be leading the first EO Accelerator. So what is the EO Accelerator and why is it different?
Jeremy Gadd
Creating an opportunity to network with others
The EO Accelerator is an immersive EO learning programme that fast-tracks a business owner’s exploration of EO as a succession option, ultimately accelerating their decision-making.
Its focused content and design offer particularly good value for founder/owners by providing a confidential space for insightful discussion, alongside opportunities to reflect and apply learning.
A key strength is the chance it brings to network with expert advisors and former founder/owners who have already transitioned their companies to EO.
‘We want to ensure that each delegate has the opportunity not just to understand the EO transition process and its impact on themselves as leaders and their business – but that they are also able to build a supportive network which will continue to add value beyond the two days,’ Jeremy explains.
‘I’m looking forward to seeing the culmination of the work that so many have invested in making the EO Accelerator a rich, immersive and inclusive experience. Not forgetting that after more than a few virtual sessions, it will be great to meet up and deliver this programme face to face!’
Supporting informed succession planning
Garry agrees.
Having played a pivotal role in the programme’s design, he’s looking forward to engaging, informing and inspiring founder/owners who are considering EO and are presently ‘looking up at what can seem a pretty daunting route into the unknown’.
As he explains: ‘It’s exciting to be involved in developing and facilitating a programme that gives a much-needed holistic view of EO, what it is and what it isn’t.
‘The issues around succession, what’s the best next step for your business and how you equip and engage those who work in it, can feel immense – and, of course, they won’t go away or become any less important,’ he adds. ‘In this context, taking two days to explore and reflect on the wide range of topics covered in the EO Accelerator seems like a wise investment indeed.’
Philippa Meaden
Sharing first-hand experience of EO
Lisa Fryer, JGA’s Operations Manager and Associate, is equally excited that booking for the first EO Accelerator is now open.
‘With this programme, we're pulling on JGA’s experience of supporting more than 90 clients at different stages of their EO journey, not just transition,’ she reveals. ‘So although it is focused on preparing to become EO, we’re able to reference and anticipate the issues that organisations might face further down the line.
‘This gives delegates a better chance of getting things in place with communications and employee engagement from an early stage. JGA’s position of not providing specialist regulated advice services (legal and financial) enables us to bring a fresh perspective to the whole transition journey.’
Lisa also highlights the benefits of working in partnership with the EOA to deliver the EO Accelerator, including access to a wide range of the EOA’s resources. ‘That access helps to cut through to key considerations for those seriously exploring the EO model and transition planning,’ she explains.
A fast-track EO learning programme delivered with the EOA
JGA’s Lead Associate Philippa Meaden is looking forward to seeing many months of labour come together at the first EO Accelerator.
She has been involved with evolving the programme’s content and guiding collaboration since May 2022.
‘It’s been an interesting evolution of a project,’ she confirms. ‘I love working with founder/owners at the early stage of the transition process so to be able to pick this up, work with fabulous stakeholders and see it all come together has been very exciting.
‘When you’re looking at the future of a business you’ve grown there’s always a personal attachment – understanding how to leave a legacy is a challenge. There’s no one size fits all and the EO Accelerator gives founder/owners the opportunity to be fully immersed in learning about EO to support their thinking and provide a better grounding for any decision they then take.
‘Recognising where JGA’s own strengths lie, we’ve developed a programme that enables other expert advisors to input and gives delegates a level of service not offered anywhere else.’
‘With the EO Accelerator programme, we’re pulling on JGA’s experience of supporting more than 90 clients at different stages of their EO journey, not just transition… so we’re able to anticipate the issues that organisations might face down the line’
Lisa Fryer, JGA Operations Manager and Associate
Garry Davis
Building clarity and confidence for the next step
But the last word goes to Garry.
‘Having worked with a wide range of businesses, owners, founders and leaders over the years, we know there isn’t a ‘one size fits all’ version of EO,’ he concludes, ‘and the EO Accelerator programme reflects that.
‘In addition to hearing from experienced practitioners there needs to be the space to discuss, reflect and apply to our own circumstances, challenges and opportunities. We want attendees to leave the EO Accelerator with a greater sense of confidence about their next steps.’
JGA @ EOA Better Business Together 2023 – our key takeaways
New format, new faces and an exciting look at EO’s opportunities through 2023 and beyond – it could only be Better Business Together 2023, incorporating the Employee Ownership Association’s AGM.
As a proud EOA supporter member, JGA was there last week to listen, learn and contribute alongside a diverse range of EOA members and specialist providers who, like us, are committed to supporting the sector’s growth.
‘Better Business Together 2023 highlighted the EOA’s achievements in a very challenging year, building on from a solid base,’ says our MD Jeremy Gadd. ‘It was especially good to hear updates from CEO James de le Vigne and the team about the EOA’s exciting ambitions, and I’m looking forward to seeing how their new product developments take shape.’
Missed it? If you’re an EOA member you can watch what happened via EO Hub on the EOA website. But first, here are JGA’s own takeaways from Better Business Together 2023:
1. The EOA is the ‘go to’ membership body for the EO sector
Confident, bold and changing fast: EO and the EOA’s membership are growing as more founder/owners choose employee ownership for their succession planning. We were encouraged by the EOA’s confidence that there will be opportunities to support similar membership groups in the devolved government areas, as demonstrated by the work already under way in Scotland and Wales.
2. The EOA’s member services are creating an impact…
… and (get ready!) there are more in the pipeline this year. We were delighted at the positive mentions for the offer that’s already been successfully established, including our own Independent Trustee Resourcing service (EOTAS) plus the ‘How to be an Empowering EO Leader’ course which JGA co-delivers with Telos Partners as part of EO Learn. Watch this space.
3. The EOA is championing awareness and advocacy of EO
We know that (done well) EO can be a better way of doing business, but what about everyone else? The EOA shared its more proactive approach to getting the message out there, with a focus on advocating for EO in areas of policy and legislation. We liked the EOA’s sharper focus on using research, data and feedback to tell EO’s story more effectively as well as shape their future offer – epitomised by the Knowledge Programme, which you can sign up for (until 4 April 2023) by contacting the EOA here.
4. The EOA member networks are a great source of knowledge, insight and support
No Better Business Together would be complete without the chance to network, but the networking doesn’t have to stop there... ‘You are the heart of the EOA,’ James reminded members, pointing out that the EOA’s regular virtual and in-person networking events and EO Hub are a great way to build and strengthen connections across the wider sector right through the year.
5. EO Day 2023 is coming – how will you support it?
Diaries at the ready: the countdown’s on to 23 June when EO Day 2023 will be live and happening at an EO business near you! This year the day is being sponsored by one of JGA’s trusted partners, Postlethwaite Solicitors. The EOA used the AGM to urge members to get creative and ‘make some noise’ about this year’s theme #TheEOeffect. Count us in, EOA!
Want to know how JGA can support you and your employee-owned business through our transition, people and governance services? Get in touch with us now.