A better way of doing business? Lessons from the John Lewis Partnership

Funded by: Economic and Social Research Council (ESRC)

Led by: Professor John Storey (The Open University Business School)

Background

Currently, and most especially since the economic crisis of 2008 began to bite, commentators, politicians and policy makers of all kinds of persuasion have advocated 'The John Lewis Model' as a leading alternative solution to the business practices in the wider economy which are thought to have contributed to the difficulties now encountered. Advocacy of the model is also sometimes based on the idea that such an alternative approach could be a constructive way to cope with the recession irrespective of its original cause. The Cabinet Office has sponsored a Pathfinder Mutual's initiative which is championing the idea of co-ownership - most notably in the public sector including the NHS. In January 2012, the Deputy Prime Minister explicitly advocated the John Lewis model for firms throughout the wider economy. Partly as a result of this attention, and partly because of its commercial success when other retailers are struggling, the John Lewis Partnership finds itself consulted by organizations large and small seeking insight into the potential for transferability of its methods. In such a climate, there is a danger of over-selling the model. In collaboration with the Chairman and the Board, this ESRC Knowledge Exchange project is seeking to analyse the component elements of the JLP approach and to help assess the potential and the conditions for replicability in other organizations.

Aims and objectives

The main overall objective is to clarify the operational nature of the John Lewis Partnership model, to help other organizations understand the multifaceted nature of the model and to help them evaluate the extent to which the model could be replicated in their context.

In the light of the massive attention paid to the John Lewis model and in pursuit of practical outcomes from knowledge exchange, it is worthwhile and necessary to undertake systematic and realistic assessment of the relevance of what could be regarded as an eccentric business model. Since many people have pointed to the need for a more detailed and independent assessment of the JLP model it is especially important for this gap to be filled. It is necessary to identify and explore the complex, contradictory and ambiguous organisational realities of the Partnership.

In summary form, this project has five main aims and objectives:

1. To interrogate and clarify the operational reality of the JLP model and make this available for discussion and scrutiny both internally and externally;
2. To seek to establish the importance of the various constituent components of the approach and the nature and extent of the mutual interplay between them;
3. To clarify the link between the model - in part or whole - and performance;
4. To clarify the potential for the wider adoption of the model and the conditions governing its successful transfer.
5. To hold a series of workshops with internal and external audiences to examine the workings and the implications of the model and its practice.

Methods

Case study research in John Lewis, Waitrose, corporate services and a series of other cases in community health service mutuals, local government, housing, and commercial sector organisations.

The project also draws on external international partnerships with the University of Bilbao concerning the Mondragon cooperatives and with the University of Wisconsin-Madison concerning comparative research work on American cooperatives.

Research team

• Emeritus Professor Graeme Salaman (The Open University Business School)
• Professor John Storey (The Open University Business School)

Publications

Research centre: Responsibility and Regulation (R&R)