Robert-McMaster

REPORT ON THE PERFORMANCE CULTURE – C-MAC INDUSTRIES COOPERATIVE

Cultural & Performance Change

To identify training and the support required for staff to move into employee ownership through the introduction of the “Employee Share Ownership Plan” (ESOP), C-Mac needed to understand the current situation. Consultants were engaged to undertake a survey and make recommendations. The report was titled:

Employee Ownership, Performance Management and High Performance: A Report on the Performance Culture at C-Mac Industries and the firms’ readiness for Transition to Employee Ownership.

Undertaken by Dr Anthony Jensen (Founding member of the Cooperative Development Network)

Below is the Introduction from the report:

Introduction

The purpose of this report is to support the vision of the owners of C-Mac to transition ownership of the firm to its employees over four years. With its move to make shares in the business available to its employees, C-Mac’s owners and its leadership team have shown that they are forward-thinking and prepared to embrace change.

Importantly, whilst C-Mac has received national recognition for its … Read more

FAMILY BUSINESS SUCCESSION

What do you do if you cannot find a successor or a buyer for your family business? Sell to your skilled and experienced workforce! “It’s an answer you may have been looking for.”

57% of family businesses have acknowledged that they would have no choice but to cease trading within one year of a severe illness or death of a current owner.

Only 42% have planned for the family business succession.

Family Business Succession Options

Model 1. “Recycling dad” but what if no one is willing or able to step into dad’s shoes?

Model 2. Next Generation ownership and management

Model 3. Have active next-generation owners with a non-family management team

Model 4. Trade Sale or find a private equity investor

Model 5. Management Buyout – Then the question arises; Can the business then sustain another MBO when the managers/owners are ready to retire?

Model 6. Employee Ownership

                6a. Create some liquidy with a minority employee ownership stake. This unlocks … Read more

HOW DO OWNERS UNLOCK VALUE IN THEIR COMPANIES?

One year after establishing our employee owned cooperative, the economy started to improve.  Before this, a significant rationalisation had occurred throughout Australian manufacturing.  Companies either re-invented themselves or closed their doors, but even as economic conditions looked brighter, profit margins were still very tight. 

Trying to value a business that had taken the better part of two generations to create and build was a challenge.  As business owners, we were overly influenced by our personal histories, our sacrifices and the memories that had taken over half a century to accumulate.  We had initially hoped that placing the business for sale on the open market would automatically produce a fair and equitable result for both buyer and seller.  Unfortunately, this was not the case; we found to our horror that no one wanted to buy!

In the absence of a sale, our protracted and tortuous succession process had finally come to a conclusion.  We had transferred full ownership to our employees … Read more