John Lewis not the right model for Royal Mail, says Mayfield

[Geezer]

John Lewis not the right model for Royal Mail, says Mayfield

http://www.managementtoday.co.uk/news/1 ... -mayfield/

By Emma Haslett Tuesday, 03 May 2011
In an exclusive interview with MT, John Lewis chairman Charlie Mayfield says its partnership structure wouldn't work for the Royal Mail.

Given the recent success of John Lewis, there's been lots of talk about the benefits of its unusual partnership model. For instance, it's been cited as the inspiration behind Vince Cable's proposed reforms for the Royal Mail - the Business Secretary wants to privatise the business and give a share of the company to employees, the idea being that they'll be more engaged and work harder if they've got a bit of skin in the game. But according to John Lewis chairman Charlie Mayfield, trying to impose a John Lewis-style structure on the Royal Mail now would be a mistake: 'It's the wrong model and, sadly, probably 20 years too late.' he told MT. 'If you simply endow somebody in an impossible situation with a share certificate, it doesn’t solve anything at all.' Time to think again, Vince?

It's been a remarkable few years for the John Lewis Partnership, which continues to top polls of the UK's favourite retailers, and, importantly, continues to make money. Only this weekend, its food business Waitrose reported that its sales jumped by nearly a quarter ahead of the Royal Wedding, as people stocked up on bunting and champagne. Apparently, Heston Blumenthal’s special royal trifle sold out, while sales of bin liners, foil and cling film were all up, and the number of sponges sold jumped by 370% (although we’re not entirely sure what that amounts to, in real terms).

So it's no wonder that other organisations are looking at the company enviously. The trouble is that it's been run like this for decades; others can't expect an overnight transformation by adopting a similar approach now. And certainly not just by giving some shares to employees, since as Mayfield points out: 'Our partners don't own shares - the Employee Benefit Trust does. That leaves us free to focus on the culture, not the share certificate’.

Mayfield is careful to try and steer clear of politics; he admits that '2011 is going to be tough', but largely refuses to be drawn on whether the Government's pace of change is correct. But his ownership model is becoming a hot political topic - with a little help from his own op-eds on its benefits relative to the old listed stock model. So it'll be interesting to see what the Government's oversight group on the subject - of which Mayfield is a part - eventually comes up with. Clearly it won't work for everyone.

[fishtank]

the idea being that they'll be more engaged and work harder if they've got a bit of skin in the game.

That's the answer to all the failing revisions,we just aren't working hard enough because we don't have any "skin in the game".
All we need is a few worthless shares and....ahh s**t,that's right we've already tried that.

[daveallum]

When the idea was first mentioned about Royal Mail adopting a John Lewis style of working/benefits etc I couldn't stop laughing.I have worked for the John Lewis Partnership on two occasions in the past and the mentality of the company is that it is owned by the people who work for it from the CEO down to the humble shop floor assistant.It is not floated on the stock market and everyone gets a bonus once a year should the company make a healthy profit.This is normally in the form of a percentage of your earnings and does include overtime etc etc before tax etc is taken off,also you do not have any of this "you were not employed at "xy" date therefore you won't get anything" which seems to happen in Royal Mail.

The last time I worked for JLP I qualified for 9 months percentage worth of my earnings,this came to over £1000 after stoppages and this was in 2005.

The CEO of JLP is quite right right when he says that their way of working would not be suitable for Royal Mail.

[chunk]

Mayfield

'If you simply endow somebody in an impossible situation with a share certificate, it doesn’t solve anything at all.'

Credit to Mayfield he understands that RM with all its complex issues cant be fixed with a share bribe.

[Judgee]

Did someone mention more shares?????????? s'cuse me I need the bathroom!!!!

[Pat Ostman]

More shares yes.

Can you believe that they have the nerve? The Government should have forced Royal Mail to honour the CS agreement knowing they'll now never be able to sell this to us.

I mean come on, more shares anyone?

[Lounge Lizard]

When the idea was first mentioned about Royal Mail adopting a John Lewis style of working/benefits etc I couldn't stop laughing.I have worked for the John Lewis Partnership on two occasions in the past and the mentality of the company is that it is owned by the people who work for it from the CEO down to the humble shop floor assistant.It is not floated on the stock market and everyone gets a bonus once a year should the company make a healthy profit.This is normally in the form of a percentage of your earnings and does include overtime etc etc before tax etc is taken off,also you do not have any of this "you were not employed at "xy" date therefore you won't get anything" which seems to happen in Royal Mail.

The last time I worked for JLP I qualified for 9 months percentage worth of my earnings,this came to over £1000 after stoppages and this was in 2005.

The CEO of JLP is quite right right when he says that their way of working would not be suitable for Royal Mail.

So why, might we ask, did you leave John Lewis and join Royal Mail, surely not for the fifty first class stamps they give us each Christmas ?

[daveallum]

The reason I left the second time was that I was on nights and after about 12 months I wanted to try and get some kind of social life,this I found in RM when I joined 6 years ago,however the job has just got worse and worse and in hindsight perhaps I should have stayed at JLP (12.5% discount in Waitrose, and 25% discount in JLP stores,I think the discount in Waitrose has gone up to 15%).

I am thinking of returning to JLP,just need to find out what jobs are available that suit the hours that I would like to do.

[pants123]

the Business Secretary wants to privatise the business and give a share of the company to employees, the idea being that they'll be more engaged and work harder if they've got a bit of skin in the game.

Business Secretary vince cable saying this,,, what a load of bullsh.t,, like the colleague shares that we where given 711 of them,, then to be told they are worth nothing,, posties are gettiing nought now,,,,, same old lies, all the time,, they are all corrupt as hell........... i don't vote, i don't believe any politian at all,, they just lie to the public while lining thier thieving pockets with tax payers money, my money that i pay in taxes,, they are thiefs,, then they say the same thing every year,,, its the age old thing.... the rich get richer and the posties get poorer..... the government and royal mail bosses can shove it where the sun doesn't shine,,, i say that because posties don't see any rewards for their extra,, extra hard work,,,, posties don't get any kind of rewards for hard work..

[Radio]

The reason I left the second time was that I was on nights and after about 12 months I wanted to try and get some kind of social life,this I found in RM when I joined 6 years ago,however the job has just got worse and worse and in hindsight perhaps I should have stayed at JLP (12.5% discount in Waitrose, and 25% discount in JLP stores,I think the discount in Waitrose has gone up to 15%).

I am thinking of returning to JLP,just need to find out what jobs are available that suit the hours that I would like to do.

Have you been driving for DHL after finishing your delivery rounds at 0900? I know many delivery staff who lost their second means of earning (mostly sel-employed) who are losing money because of the revised duty structures. As far as RM is concerned, nothing will work. No model, no project/programme will work as the mangers are too ignorant/arrogant, union too militant/outdated and staff too lazy, protected by union and bothered only about money.

[fishtank]

mangers are too ignorant/arrogant, union too militant /outdated and staff too lazy, protected by union and bothered only about money.

[RTP]

the Business Secretary wants to privatise the business and give a share of the company to employees, the idea being that they'll be more engaged and work harder if they've got a bit of skin in the game.

Business Secretary vince cable saying this,,, what a load of bullsh.t,, like the colleague shares that we where given 711 of them,, then to be told they are worth nothing,, posties are gettiing nought now,,,,, same old lies, all the time,, they are all corrupt as hell........... i don't vote, i don't believe any politian at all,, they just lie to the public while lining thier thieving pockets with tax payers money, my money that i pay in taxes,, they are thiefs,, then they say the same thing every year,,, its the age old thing.... the rich get richer and the posties get poorer..... the government and royal mail bosses can shove it where the sun doesn't shine,,, i say that because posties don't see any rewards for their extra,, extra hard work,,,, posties don't get any kind of rewards for hard work..

So by not voting all you're doing is burying your head in the sand.

Yes Gordon Brown wanted to privatise royal mail, but it was his own party that stopped him doing it.

Does that not tell you something?

You come on here and have a go at all politicians and yet you're not prepared to help change the situation by casting your vote.