The studio’s move exemplifies the groundswell of interest in employee ownership now spreading across the private sector. Employee owned companies like retail giant John Lewis and engineering consultancy Arup have been lauded for outperforming competitors over the course of the economic downturn, and last month Deputy Prime Minister Nick Clegg called for the creation of a “John Lewis economy” characterised by widespread employee share ownership.
The studio has been advised throughout the transition process by employee ownership experts the Baxi Partnership, who were first brought in by the founders in November to run a collaborative assessment of the opportunities presented by an employee owned model. Over the following months, the Baxi Partnership supported the company in structuring the transfer deal so as to meet the founders’ and employees’ shared aspirations for the business.

According to a recent study into employee ownership by CASS Business School, employee owned businesses create jobs faster, and are in certain circumstances more likely to survive difficult economic conditions than others. The study also found that absenteeism and staff turnover tend to be lower in employee owned businesses, whilst job satisfaction tends to be stronger, and wages tend to be higher. A HMRC study conducted in 2008 found that a majority of businesses with employee share schemes reported improved organisational performance as a result.

Christopher Wrigglesworth, Managing Director of Clearcut Sound Studios, said:  “Our move to a model where every employee owns a stake in the business will harness our team’s energy and commitment, and help us continue to grow whilst doing exciting, high profile work.

“The Baxi Partnership has been instrumental in driving this process forward. Their experience and expertise in employee owned business has ensured this transition serves the long-term interests of the studio, whilst fulfilling our founders’ and employees’ shared vision for the future success of the company”.

Jacqui Mitchell, from Baxi Partnership, who project managed the transition said: “When employees have an owning stake in their companies and a say in how they are run, they are naturally more invested in their work. That’s why employee owned companies show greater productivity, lower staff turnover, and greater resilience in tough economic times. The model works equally well for small and medium sized businesses, and Clearcut serves as a pertinent case in point.  It’s no surprise that an increasing number of companies across a growing range of sectors are waking up to the tangible benefits of substantive employee ownership”.

For more information, please contact Campbell McDonald on 07879 466 959 or campbell.mcdonald@baxipartnership.co.uk

Baxi Partnership host free seminars on a regular basis for anyone wishing to find out more about this model. See http://www.baxipartnership.co.uk/courses-and-seminars/introductory-seminars-on-employee-ownership/

Peter Stocks, Chief Executive of Baxi Partnership, commented that “having worked closely with Clansman Dynamics during their successful transition to employee ownership, we’re delighted to see this ambitious growth, despite challenging conditions in the manufacturing sector, and UK economy as a whole. This goes to demonstrate the resilience employee owned organisations can create when workers are given a meaningful stake in the business they work for.”

Clansman Dynamics was founded in 1994 and became employee-owned in late 2009, realising a long-term ambition by Chairman Dick Philbrick to ensure the company had a sustainable and long term future under employee-ownership and in Scotland.

Co-operative Development Scotland and Baxi Partnership collaboratively supported the subsequent transition, with Baxi Partnership’s providing specialist expertise to capture the employee’s transition journey, design and implement the business new structures and provide financing solutions to make the transition a reality. This successful process was underpinned by buy-in from employees at all levels of the organisation.

Chairman Dick Philbrick said: “The business has really blossomed, and the employees have taken the company well beyond the growth ambitions forecast when we completed the deal. “Productivity, profitability and innovation have all flourished, but importantly, the employees have prospered and that is the key reason for the success of the business. “Employee ownership can be the defining factor in driving growth and securing the future of a company that is facing a succession issue.”

Baxi Partnership will be hosting a free seminar, on the 7^th March in Edinburgh sharing insights about driving success from employee owned business models similar to Clansman Dynamics.

For information about this story, or to book your place at this forthcoming seminar, please contact olivia.schelts@baxipartnership.co.uk or call 0207 960 6876.

Since the beginning of 2011, we have grown from a 9-90 strong company and are now considered a market-leading provider of innovative Financing and Consultancy services across the UK.

As a result of this exciting, rapid growth, we are looking for a Human Resources specialist to support the Executive Board as Baxi Partnership moves towards the next development phase.

The successful candidate will be an energetic, experienced HR professional, having had exposure of the entire spectrum of HR functions. Experience of TUPE transfer will be advantageous, and experience of managing a small team is crucial. Ideally CIPD qualified, you will have a proven grasp of current employment legislation.

Your daily role will take in developing, advising, implementing and communicating organisational policies, in areas including, but not restricted to, employment legislation, learning and development, and recruitment. Ultimately we are looking for someone to shape the department toward a ‘Best Practice’ model.

It is preferred that this role will be primarily located in our Glasgow office, with national coverage. Multi-site travel will be required on a fairly regular basis.

Baxi Partnership is an  equal opportunity employer and encourages applications from all qualified individuals.

Please contact Jim Murray on 07990 625573 or email jim.murray@baxipartnership.co.uk for more information. Interviews commence March 6^th.

Baxi Partnership’s Director of Public Sector Practice, Campbell McDonald will also speak, alongside David Prout, Director General at the Department for Communities and Local Government and council leaders from across the country, in a day designed to capture learning from trailblazing local government commissioning and provider programmes.

Campbell and the Baxi Partnership team will be present throughout Capita’s New Models of Service Delivery in Local Government Conference to share lessons learned on how employee led models are unlocking local growth and productivity in the public sector.

Baxi Partnership is participating in its dual capacity as one of the specialist providers behind the Cabinet Office’s Mutual Information Service and a mentor to three of the Department’s Mutual Pathfinders.

For more information about how exploring the benefits of public sector mutual for your organisation, why not visit our exhibition stand, hear Campbell speak at this event, or click here to find out about getting started with employee ownership.

Event highlights will include:

• Investigating the benefits of mutualisation
• Hearing from Central Government on the progress of the Localism Act and its impact on future delivery of public services
• Strategic guidance on how to action the Open Public Services White Paper from the Director of the Institute of Local Government Studies
• Exploring the increasing role of councils as commissioners of public services
• Insight into the future of a place-based approach to community budgets from a key pilot area
• Understanding the barriers of commissioning effective services from the voluntary sector

Both the Prime Minister and Deputy Prime Minister announced that Coalition Government will spend this year identifying new measures to incentivise setting up or transitioning into new employee owned organisations – a move welcomed with enthusiasm by Baxi Partnership.

The Deputy Prime Minister opened the week (January 16^th) calling for a “John Lewis economy” in which more individuals have a stake in their companies and for this to be “the decade of employee share ownership”.

Just days later, (January 19^th) the Prime Minister set out his vision for a genuinely responsible capitalism that would see more people holding a direct stake in the economy and greater autonomy, in turn driving increased employee satisfaction.

Responding to the Government’s announcements, Peter Stocks, Managing Partner of Baxi Partnership, said: “Giving employees a stake and a say in their own businesses changes the way that people feel about coming to work in the morning which in turn creates stronger more productive businesses – it is clear why the Government would want to support more companies to embrace this approach.

“Through sharing wealth, knowledge and influence over the business, employee owned companies tend to be more productive, more innovative and operate in a more sustainable way than their non-mutual peers. The UK economy only stands to gain from supporting more businesses to share ownership among their employees.”

Specific announcements in both speeches included:

• As the Minister responsible for mutuals in the Department for Business, Innovation and Skills, Ed Davey will commission a review of the existing barriers to the creation of more employee owned business and identify ways to tackle them, including:
  • Addressing ignorance around employee ownership among employees, owners and business advisers
  • Does the tax system treat employee owned firms fairly?
  • Do we need an off-the-peg employee ownership business model?
  • Can we give employees a right to request ownership in their firms?
  • Nick Clegg will host a summit this summer on employee ownership
  • The Government will create a Co-operatives Bill to bring together and simplify more than a dozen outdated pieces of legislation governing co-operatives and mutuals into a single statute to be put before parliament before the next election. The Bill will also carry any additional legislative measures needed cut red tape around setting up mutuals.

The 56-strong Camco Advisory Services (CAS) team are joining from Camco International, a global developer of clean energy projects and solutions to reduce greenhouse gas emissions.

In joining Baxi Partnership, CAS are excellently placed to build on their own 20-year track record in providing expert advice on sustainable energy and climate change, to expand the range of services and capabilities they can offer clients and to capitalise on new growth and investment opportunities.

Peter Stocks welcomed the Camco team saying: “We see a powerful alignment between the values of supporting sustainable business practice and Baxi Partnership’s mission to grow successful, sustainable employee owned businesses”.

“We are delighted to have such a smart and highly skilled team to join our rapidly growing employee owned Partnership. Camco’s UK Advisory business is an excellent fit with Baxi Partnership’s existing teams of experts who provide specialist support and funding to businesses and organisations right across the economy.”

In the last 12 months, BPL has embarked on a period of rapid growth in order to enhance its ability to support employee ownership through growing the success of its own employee owned business. Bringing in a team of nearly 60 new Partners means Baxi Partnership has grown from 9 to 90 employees in just over 12 months.

At the tail end of last year (December 23^rd), Baxi Partnership welcomed in a team of 12 new Partners in the form of RM2 Partnership, market-leading specialists on employee ownership schemes.

Just as the Coalition Government sets about increasing levels of employee ownership right across the wider economy, Baxi Partnership and RM2 can now offer business owners, entrepreneurs and senior management teams a single source of expertise, advice and capital to explore the benefits available through offering employees a stake in their own organisations.

By bringing in RM2, Baxi Partnership is now one the most comprehensive providers of expert support for businesses of all sizes who want to achieve gains in productivity, innovation, entrepreneurialism and staff satisfaction that employee ownership is shown to deliver.

Peter Matthews, MD of Baxi Partnership Advisory, said: “Bringing these two organisations together creates a unique and powerful offer that we hope can help  achieve a step change in employee ownership levels right across the UK economy. With a combined 26 year track record, Baxi Partnership with RM2 now offers a comprehensive end-to-end specialist service to anyone interested in sharing  ownership with their employees.”

RM2 Partnership will be led by Peter Turner, who said about the acquisition: “We are all delighted to be joining Baxi
Partnership as employee owners. We will continue to drive our core business of providing specialist advice on employee share schemes from strength to strength, and look forward to capitalising on the opportunity to offer a seamless journey for customers interested in pursuing employee ownership at any level.”

The new Mutuals Information (and Triage) Service is replacing an interim MIS which was first launched in 2010 to act as a first point of contact for organisations and individuals interested in spinning out their service as a mutual.

One year on, Baxi Partnership is one of a handful of mutual specialists who are part of a consoritum led by PA Consulting Group that have won a competitive tender to deliver the service.  The full list of partners in the consortium includes the Employee Ownership Association, Co-operatives UK, Social Enterprise UK, and the Office for Public Management.

The new MIS brings together information, advice and bespoke support for fledgling mutuals through:

• A new web resource to support teams looking to get started down this journey: http://mutuals.cabinetoffice.gov.uk/;
• An information and case management hotline: 0845 539 0543; and
• A triaging process that will identify the support needs of potential spin outs and pass those onto the Cabinet Office who will make decisions about access to funding.

The Cabinet Office has confirmed that it has in total a fund of more than £10m that will enable the most promising and innovative mutuals to spin out of the public sector and deliver public services in England.

In a quiet corner of Birmingham this month, a small pocket of optimism offered a splash of colour on an otherwise gloomy picture dominated by public sector cuts and global economic catastrophe.

On the evening of Wednesday November 9, a beaming young woman stepped up to receive an award on behalf of her company Childbase, a provider of nursery services in the south-east of England. As she and a handful of colleagues arrived at the microphone, she gushed: “As employee-owners I think we are really deserving winners of this award.”

The audience laughed but everyone there knew she had not meant to sound immodest. The award was to celebrate the group of frontline staff who had done the most to drive and promote a culture of productive employee ownership in their organisation. She was proud of what her team achieved and her enthusiasm was infectious.

That team is called the Partnership Council and they have acted as the voice of employees within Childbase for more than a decade. Councillors are taken from every level of the 1,300-strong enterprise and they provide employees with a key role in decision-making (for instance in remuneration and working hours), share innovative working practice and help ensure the employee-led model drives continuous improvement.

Childbase is just one of the growing number of providers of public services that are demonstrating that the employee-led mutual approach is capable of delivering remarkable results. A raft of others were also recognised on the night, including Central Surrey Health, Anglian Community Enterprise, City Healthcare Partnership, Highland Home Carers, Social Adventures and Stewartry Care.

The awards opened this year’s Employee Ownership Association annual conference, an event that brought together a thriving and expanding movement that believes the employee-owned model creates highly responsive enterprises offering outstanding outcomes in both private and public sectors.

From the John Lewis Partnership, whose chairman Charlie Mayfield closed the conference, through to the likes of the Navigo health and social care community interest company, which won two awards including most impressive public sector mutual, this model produces organisations that are both highly effective and attract exceptional levels of public trust.

The awards are named after Philip Baxendale, a pioneer for the employee-owned movement. In a video message, Baxendale, now 85, echoed the sentiments of his long-time companion and another pioneer for employee ownership, the recently departed Robert Oakeshott, in issuing a challenge to the sector they both helped to create.

“It’s very important that people in employee-owned organisations should speak about it and encourage this idea – because people will listen to employees who’ve benefited from employee ownership,” he said.

This is a challenge to all those that would seek to promote this approach to delivering services in the public sector, not least the three main political parties which all offered manifesto support for the idea at the last election.

We must do more to listen and give voice to those employees already working in thriving employee-led enterprises if we genuinely want to see a new wave of public sector mutuals – and possibly beat back the gloom with a bit of heartfelt immodesty and enthusiasm.