Cooperative business back to the future!
In times of disruptive change and digitisation, companies face the challenge of finding the right organisational structures to mount an appropriate response. There is no such thing as a universal business model. Every company is different, with its own history and unique characteristics. But it is nevertheless possible to set out some general principles and rules of thumb that are important for any company.
The classic management toolkits that companies use include strategic thinking exercises, expensive consultants and a variety of reporting tools. An asset they often forget is their own staff. Companies that involve their employees in the running of the organisation, especially nowadays, enjoy a vital competitive edge. Employees who feel involved are prepared to give their best. They make fewer mistakes, pay closer attention, contribute to results (profits) and have an eye for the future of the company (continuity). Any company would (or should) want employees like these.
Co-ownership, participation and co-management
Companies which succeed in encouraging such involvement can be described as having a participatory corporate culture. The trick is to make sure that employees or ‘co-workers’ literally feel a little like co-owners of the business. For example, employees can be given a say in — and take responsibility for — their own job, post or tasks. Companies can work with different forms of employee participation or even co-management, where employees have a seat on the Board of Directors.
Forms of financial participation, such as profit-sharing and/or employee share ownership, are also possible. Various fiscal and legal instruments are available for structuring participatory business models. But the ultimate form of participation in business is the cooperative model.
The company type ‘cooperative partnership’ lends itself well to this, but of course it is about more than just a legal structure. The key is to get everyone on the same page, so that a group of entrepreneurial people are able to tackle multiple challenges in a spirit of togetherness.
Brabo, historical pioneer
Brabo is a textbook example of this, with a history dating back to 1931. Economic, social and societal ambitions have traditionally gone hand-in-hand at Brabo, in a unique corporate structure where clients (55%) and employees (45%) are joint shareholders and company owners. As a result, employees not only share in the profits but also have a chance to shape their participation in a tangible way via the Board of Directors. Share ownership is limited per person and is built up in phases. This avoids distortions in the capital structure and the focus on the long term is conceptually embedded into the corporate structure.
Despite being over eighty years old, the Brabo model still looks surprisingly modern today. The structure originally chosen was that of a cooperative partnership with limited liability. This gave the best guarantee that private and public interests would be ideally reconciled, with a view to delivering a competitive and efficient service. Today the challenge remains the same, but in a world that is changing even faster. The fact that Brabo has employees who contribute ideas in accordance with future needs is a major plus. Brabo’s strength lies precisely in its long-standing business model.
Geert Janssens,
chief economist at Etion and expert in participatory business models
Etion is the forum for committed entrepreneurship
and supports an integrated view of value-driven entrepreneurship in which personal leadership, the organisation and society are all closely interlinked. Etion thus sharpens decision-makers’ understanding of conscientious action with a view to the continuing success of the organisation.
In summary
- Brabo has been a pioneer and frontrunner in participatory entrepreneurship since 1931.
- Co-ownership and co-management ensure that everyone is on the same page. As a result, Brabo Group is ready for the challenges of the future.
- The company gives people career-growth opportunities: from boatman to pilot to managerial posts.
