The John Lewis Model Bringing Quality to our Partners and our Customers
Laura Whyte Personnel Director, John Lewis
Retail Leadership Summit 2014
5 February - Mumbai
“Believe me, in the next 20 or 30 years
if you want a really sound industrial
concern you will have to admit your
employees to a far larger share of the
total earnings than before. The days
when a lot of shareholders could stay
at home doing nothing and take a very
large proportion of the earnings of a
business are all over.”
Spedan Lewis to his shareholders 1918
Our business today
• 29 department stores
• 11 at home shops
• 1 flexible format
• A £1bn online business
• Herbert Parkinson
• Broadband, Financial Services
• 30,000 Partners
• Sales 2013 £4bn
• Operating profit 2012 £ £217m
• Bonus to staff 13 -20% annual pay
• over past 5 years
Purpose
Power Profit
The Partnership’s Principles
Partner
Profit Customer
Give great leadership & empower
Partners with the knowledge and
desire
to provide outstanding service
Generate incremental
sales
& profit through greater
customer loyalty
Enable the development
of deeper customer
relationships
Partner – Customer – Profit
Our Behaviours
Leadership in a Partnership framework
The behaviours reflect the critical behaviours required by current and future
leaders and the conflicting tensions that they are expected to reconcile
Vertical axis: Strategy vs. Execution
Strategic Vision Investing for longer term sustainable growth
& strong legacy
Disciplined Execution Delivery of short term profitability and
competitiveness
Enduring Legacy Retaining the core purpose and cultural spirit of the Partnership
Transformational Change Revitalising and growing the character and culture of the Partnership
Horizontal axis: Legacy vs. Change
88% response rate
Instigates real change:
Performance related pay
Development programmes
Democratic structure
Partnership in action: Partner Survey
Partnership in action: democratic engagement
The John Lewis Own Brand swimsuit campaign: Please could you confirm the stance the Partnership takes on using models smaller than UK dress size 10, and whether these models used fit the Partnership’s criteria?
Business expenses: We have recently seen a lot in the media about the abuse of financial allowances and MP’s expenses. Can Partners be reassured that controls are in place to ensure no abuse takes place in the Partnership at any level?
Plastic bags: As a responsible retailer, why are we not leading the field and taking much greater steps to reduce carrier bag usage?
Partnership in action: the journalism
Is the model a better way of doing business?
Doing the right thing for the long term
Taking decisive action – the online story
Winning Market Share
Brand
Collaboration
Now 2nd in UK Now 3rd in UK
18
Fashion
sales +9.1%
Home
sales +6.2%
EHT
sales +28.9%
Attracting new customers
19
Investing in ourselves
Over 2,000 Partners registered for an external qualification in 2012
335 Partners achieved a qualification in Distribution
215 Partners achieved a Contact Handling qualification
New JL apprenticeship programme
20
The future – redefining the department store
Kuoni travel concessions in
eight branches Joe and the Juice opened in
JL Solihull in November
Little Waitrose, JL
Watford Opening new shops
The John Lewis Model Bringing Quality to our Partners and our Customers
Laura Whyte Personnel Director, John Lewis
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