ASSESSMENT 1.1 Mr. Gichuhi ?JANUARY 4, 2018 Business
Summary 1
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Table of Contents Introduction 3 ………………………………………………………………………………….Business 1 – John Lewis 4 ………………………………………………………………………Business 2 – British Heart Foundation 6 ………………………………………………………..A.M1 – relationship and communication with stakeholders 9 …………………………………B.M2 – how the structures of the businesses allow them to reach their aims & objectives 12 AB.D1 – evaluate the reasons of success for the businesses 15 ……………………………….References 17 …………………………………………………………………………………..Appendices 18…………………………………………………………………………………. 2
Introduction I have been accepted onto a work placement in the Economic Development Unit (EDU) at my local council of Bexley. The EDU is dedicated to helping businesses to start, grow and prosper. I will be working with the of?cers who are responsible for publications, brochures and guides. I have been asked to research and collect information on two contrasting businesses and use this evidence to write a report on why businesses are successful. The businesses I have chosen are John Lewis and British Heart Foundation, I chose these two businesses as they contrast in many different ways as one is a not-for-pro?t charity and the other is one of the UKs most successful companies. 3
Business 1 – John Lewis John Lewis is a public limited company, which is owned by a parent company called John Lewis Partnership who also own Waitrose. This means that John Lewis is a subsidiary of this parent company. However, they still operate as a public limited company. Being a public limited company means that it has limited liability as the business and owners don’t share an identity and their assets and ?nance are separate. This means that the owners personal assets cannot be touched to repay the company’s debts. Also, being a public limited company means that John Lewis has shares available. However, John Lewis’ shares aren’t available on the stock market as the permanent staff are the owners of the business and share in the bene?ts and pro?ts. 1John Lewis’ parent company’s ultimate purpose which John Lewis has to follow is to ensure the happiness of all the members and employees working for them, so that the employees can stay satis?ed whilst under employment for a successful business. This purpose is very 2ful?lled because, as the permanent employees for John Lewis are shareholders they will be very motivated to work for the company as they share the bene?ts and pro?ts in the business. Also, John Lewis’ main purpose is to provide its products to customers for a reasonable price and keeping their customers satis?ed with their service and products so that customers gain loyalty and return to John Lewis often. John Lewis seem to be very good at this as in 2017 they made £3.78 billion in revenue and £243.2 million in operating income. 3There are 4 main sectors a business operates these are primary, secondary, tertiary and quaternary. John Lewis is a chain of high-end department stores operating throughout the UK which means it operates in the tertiary sector as the tertiary sector refers to the commercial services. Seen as John Lewis sell products to its customers it operates in the tertiary sector. The scope of the company was national, but has only recently become international as in November 2016 John Lewis opened their ?rst store in Australia this was there ?rst store to open outside of the UK. The size of John Lewis is large business as it 4has 38,100 employees working in over 50 stores. To be a large business, a business needs 250+ employees. A stakeholder is someone who has an interest in the business of which there are two types internal and external. Internal stakeholders are groups within the business and external stakeholders are those who are outside the business. The stakeholders involved at John Lewis are: Owners- are interested in how much pro?t the business makes as they will receive the biggest cut. The chairman of John Lewis’ parent company is Charlie May?eld he has been the chairman since 2007 and is the closest person to an owner. He affects the business as the decisions he makes not only affect the parent company but John Lewis as well, so if he decided to make drastic changes John Lewis would have to follow them. https://en.wikipedia.org/wiki/John_Lewis_(department_store) 1 https://www.johnlewispartnership.co.uk/about/our-principles.html2https://en.wikipedia.org/wiki/John_Lewis_(department_store)#cite_note-annualreport-1 3https://en.wikipedia.org/wiki/John_Lewis_(department_store)#Australia 4 4
Managers- are concerned about their salary. They affect the business as they have some power and have control over the employees that work for them, with this power they need to motivate their employees so that they work well for the business, because if they don’t then the business could lose money. Employees- are concerned about high wages and being able to keep their job. They affect the business as they represent the business to the customer and if they give the wrong impressions to the customers then the business could receive a bad reputation. Customers- are interested in the business providing quality products at reasonable prices. They affect the business because without customers the business wouldn’t be able to function as they wouldn’t receive any money. Suppliers- are interested in the business as they want the business to continue to buy their products, which produces a sense os security for the relationship between the supplier and the business. They affect the business because without the materials from the supplier the business wouldn’t be able to sell its products or provide its services. Community- are interested in the business as they provide jobs to the local people on the community. Also the community want the business to be ethical and sustainable. They affect the business because the community provide the business with employees and customers, if the business do not have a good relationship with their community then the business wouldn’t be able to function. John Lewis have a very different structure to most businesses, as there isn’t a clear hierarchical or ?at structure shown. They use a holocratic structure this means that responsibility and authority are distributed among the workforce. They rely on very clear roles, aims and objectives, which, in turn rely on very clear communication and trust. There is one clear leader at the top of the chart and this is the overall chairman. But all decisions that come from the chairman get forwarded to everyone even the partners at the bottom of the chart. Also, in the opposite sense the partners form their own council higher up the chart and can communicate directly to the chairman if they have any praises or concerns. This shows that their organisational chart is very free ?owing and open and communication is very strong. (see appendix 1) John Lewis has set themselves objectives to reach their aim they want to meet by 2028. Their aim is to ensure long term sustainability of the partnership as it has been 2028, it will have been 100 years since the ?rst constitution was written by Spedan Lewis. The objectives they’ve set themselves to reach this aim. These include having stronger brands and using new growth, to do this they want to improve their offer and experience for their customers, they also want to build new businesses in high growth areas and they want to continue to grow their market share. Secondly, they want to offer better jobs, better performance and better pay. They want to improve productivity whilst, increasing the sales and pro?t achieving higher job satisfaction, if partners enjoy and contribute more in their roles they will receive above market pay, because they achieve above market performance. Their last objective is ?nancial sustainability and to do this they want to improve pro?tability so that they can invest more in partners and customers whilst, building their ?nancial strength so they become more determined and can take on more opportunities.?5https://www.johnlewispartnership.co.uk/about/our-strategy.html 5 5
Business 2 – British Heart Foundation The British heart foundation is a UK based heart charity. As a charity its ownership will be a Voluntary Organisation. Charities and non-pro?t companies come under Voluntary Organisations as their sole purpose is to help a particular cause. Charities aim to raise as much money as possible to help their cause, or to raise as much awareness possible. Charities are run by a board or committee made up of trustees. Not-for-pro?t organisations like charities are separate to the individuals who control them, meaning they have limited liability. The British Heart Foundations purpose is to inform people of the increasing death rate from cardiovascular disease as this is a concern to them. Their main purpose is to fund the research for answering questions on the causes, diagnosis, treatment, and prevention of heart and circulatory disease. They do this by being the single biggest funder for cardiovascular research inside the UK. The sectors that BHF operas under can be quite complicated being a charity but, I think they operate inside the tertiary and quaternary sectors. This is because they do provide charity shops that rely on donations and also services such as informing people and handing out lea?ets. Also, they operate in the quaternary sector as they provide as much income as they can to helping groups of scientists in researching into cardiovascular diseases. The scope of a business depends on where in the world It operates, as a charity BHFs growth is limited this is why they are only a national company only operating inside the UK. For them to become an international company they would need to open a store or start operating outside the UK. British Heart Foundation is a large business as it has 250 employees including volunteers the charity has over 23,000 employees. 6The stakeholders interested in British Heart Foundation are: Community- are interested in the charity as they provide the community with useful information about cardiovascular diseases and also help those in the community who suffer from cardiovascular diseases. They affect the charity as they’ll be the people who are affected by the cardiovascular diseases and are also the ones who will need the services of the charity. They also rely on donations and fundraising from the community to be able to have enough money to fund their research. Customers- are interested in the charity as they want to continue to receive the charity’s services and also buy the charity’s products from their charity shops. They affect the business as without the customers the charity would not have any income as they rely on customers purchasing items from their charity shops to be able to fund research into cardiovascular diseases. Employees & volunteers- are interested in the charity as they want to be able to have strong job security whilst receiving the right motivation and good pay. However, being a charity they don’t have many employees they have more volunteers. Volunteers don’t require pay as they are giving their services for free, to the charity to help spread awareness. They affect the charity as if the charity didn’t have any employees or volunteers then they wouldn’t have anyone to work at their charity shops or anyone to perform the services they provide. https://en.wikipedia.org/wiki/British_Heart_Foundation 6 6
Trustee Board- the Board of the British Heart Foundation is composed of 14 members with an overall chairman of the Board of Trustees this is Dr Doug Gurr. They will be interested in the charity meeting its goals and being able to raise as much money and awareness as they can. They will also be interested in their wages. They affect the charity as without the Board of Trustees, BHF would lose its chain of command and their chain of communication would be broken as there would be no-one at the top of the chain. Investees- the investees are the companies that the British Heart Foundation fund and give money to. Currently the British Heart Foundation are aiming to spend £100 million a year funding over 1000 research projects. Since 2008 they have been funding ‘Centres of Research Excellence’. These six centres bring together scientists to work on research projects. The investees affect the charity as without them the charity wouldn’t be able to fund into the research of heart and circulatory disease and wouldn’t be able to meet their aims as a charity. British Heart Foundations structure is relatively ?at, with only 2 main levels of authority. The top level of authority is the Board of Trustees, and below that the structure represents a matrix structure as there are three separate groups that are separated based on what they need to do and what their role is. The governance streams role is to make sure that decisions are informed and are wise decisions for British Heart Foundation and that it is bene?cial for them. The board delegates certain tasks to the corresponding committees. Each committee has members with specialist knowledge who will be independent from the Trustees. The operational stream is slightly different as they review decisions based on the operational areas on behalf of the board and have the responsibility of dealing with six different operational areas, they have a strong obligation to make decisions based on all the different areas. The third stream is the advisory stream they cover speci?c areas which work with supporters and other key stakeholders to create new strategies. They are also the main area that communicate with the volunteers to help fundraise money. 7British Heart Foundation have a Pdf document called ‘our strategy to 2020: three years on’ and in this document they talk about their ?ve different areas of their charity and their speci?c goals for each area. The ?rst area is: ResearchTo understand the social, genetic, cellular and molecular causes of heart and circulatory disease. To discover better ways of preventing, diagnosing and treating heart and circulatory disease. To enhance translation of these research discoveries into better patient care. They also have plans in order to reach these goals, they have made amazing progress in their goal of funding £500 million of research by 2020. They will continue to invest in people, and attract the most talented scientists from around the world too ?ght for their cause against heart and circulatory disease. They also plan to target unmet needs, which will increase the impact their research has in a wider portfolio. This will build build numbers and success rates in underdeveloped research areas. https://www.bhf.org.uk/about-us/who-we-are/how-we-are-governed7 7
Prevention, survival and supportTo increase the rate of early diagnosis and effective treatment of all types of heart disease. To increase survival rates from acute events. To support patients and their carers in the management of their condition. Their plans to reach these goals are to take their ?ndings of research and use them in clinical settings. They are also going to deliver the best possible outcomes for patients and provide the best practice. They also plan to increase the rate of cardiopulmonary resuscitation and de?brillation methods known nationally through their ‘nation of lifesavers’ campaign which is reaching more schools and communities then before. Listen, Engage and In?uenceTo work with national and regional governments to make heart disease a priority for politicians and senior NHS decision-makers. To actively engage patients, supporters and volunteers, health and research professionals, staff, and our partners to inform and shape our work. To increase awareness that heart disease is a problem that needs to be addressed now. The plans they have in place to meet these goals are that thy will engage the public mainly through their network of shops, this will ensure them that their research is recognised as the solution to the suffering caused by heart diseases. They also plan to develop a stronger, and more in?uential relationship with the decision-makers in government and the NHS. Grow Income To grow their annual net income by 20% to £150m, by 2020. To enhance their existing fundraising activities to maximise their income from their sources. To explore new ways to generate income and build sustainable income streams by 2020. The plans they have in place to reach these goals are the they will drive new retail shop formats and online retail platforms. They also want to develop and enhance supporter journeys and drive forward digital innovation in fundraising. In accordance to the goals they also will explore new income streams within their existing areas of fundraising and retail, and also search for new areas and innovative ways to generate income. 8World-Class OrganisationTo run their operations and processes in the most ef?cient and cost-effective ways. To maximise the use and impact of information and technology. To attract and retain high-quality staff and volunteers who share our values and believe passionately in the BHF vision. To make sure they reach this goal they will continue to invest in their core systems to provide reliable services, whilst also introducing more intelligent working principles to improve their ef?ciency of the organisation. They are also going to continue to nurture a culture of high performance in their environment, which supports health and wellbeing. In addition, they will provide staff and volunteers with the support they need to reach their potential and win the overall ?ght against heart disease.?9 https://www.bhf.org.uk/about-us/bhf-strategy 8?le:///Users/lewis/Downloads/bhf-strategy-2017%20.pdf9 8
A.M1 – relationship and communication with stakeholders Stakeholders are groups of people or individuals that have an interest in the business or are affected by the operations of the business. There is a large range of stakeholders, these can be categorised as follows (see appendix 3) and based on this table each stakeholder has their main interests and their main power and in?uence on the business. (see appendix 4). 10The stakeholders I looked into at John Lewis are: Owners- The owners interest would be their salary, their share options, their job satisfaction and motivation. They have the power of making decisions and have detailed information. The owners of John Lewis are anyone who has a share in the business. The relationship with these partners is very strong as John Lewis’ revenue is generally increasing, this means that the owners will receive a larger sum in dividends. With John Lewis’ ?exible structure the partners can communicate directly with the chairman and other directors. If the partners had a problem they would report it to the partnership council, who would then take the issue to the directors or the chairman in their next meeting. Managers- The managers would be interested in their salary, their bonuses, their job security and motivation. They have the power of handing out the workloads to the employees below them. John Lewis communicates with their managers using Live executive chats. These are realtime web chats which are held via a pre-planned event which gives the partners to question the management board, it also gives the chance for the management team to converse about matters the partners mention and allows them to come up with solutions and how they will carry them out whilst the partners are present. This presents a strong relationship between the business and its managers as they communicate often and in the correct and professional way for their level of importance. Employees- The employees would be interested in their wages, their job security, their holiday time, and their job satisfaction & motivation. They have the power of staff turnovers, industrial action and their service quality. John Lewis communicates with its employees by awarding all employees the same percentage bonus every year. This makes the employees feel like they own the business and encourages them to work harder and better together. Giving the employees a percentage bonus is a way of communicating with them as it tells the employees how much money the business is making and whether they need to work harder and push themselves more to earn a larger bonus. This form of communication is great for employees as they will get rewarded with a larger bonus if they work better. This portrays strong relationship as John Lewis is the UKs most successful ’employee owned’ business. Customers- The customers are interested in reliable quality, good value for money, product availability and impeccable customer service. They have the power of the business’ revenue and recommendations of the business via word of mouth. John Lewis communicates with their customers by keeping returning customers interested in the business, by sending them text messages and even emails to inform customers of special deals on offer or when new products are in stock. This communication method is successful for the customers as it keeps them informed and keeps the relationship between the business and the customers. https://www.tutor2u.net/business/reference/stakeholders-introduction 10 9
Suppliers- The suppliers are interested in long term contracts, prompt payment and growth of amount purchased. They have the power of pricing for the business and also the product availability. John Lewis has a munger of different suppliers as they allow any small or large business with a good product to supply it to them. For a supplier to do this they ?rst need to contact John Lewis and give them the full picture about what their products is and what type of buyer it will correspond with. John Lewis’ communication with their suppliers is very strong as John Lewis and their suppliers came to an agreement for the suppliers to deliver some of the products they supply to the customers. John Lewis communicates using a website which allows all the different types of suppliers to log in and have everything they need to access from John Lewis in one easy place. 11Community- The community are interested in the local environment, the local jobs offered and the local impact of the business. They don’t really have much power, but in extreme cases they could form groups against the business and sign petitions and try to shut down the business. John Lewis follow a 7-step communication method with the community. This is Research- Understand where they’ve have come from, where they are now and what the future (external) landscape will look like. Engage- Understand the commercial context and stakeholder perspectives of their community activity. Evaluate- Analyse the research and engagement outputs and evaluate the strengths, gaps, threats and opportunities. De?ne- de?ne a clearer vision for community which encapsulates current activity and re?ects future ambition. Develop- develop a guiding framework for planning and managing their community activity which addresses any gaps and actions the opportunities. Deploy- deploy the framework with supporting materials, as required and review organisational structures required to support delivery. Whilst also being able to de?ne and agree future targets and measures of success. Communicate- work with communications teams to deploy a communication plan at a Partnership, divisional and local level. This seven step 12method helps John Lewis communicate with the community well while also running their ‘community matters’ scheme which is John Lewis’ charitable scheme that runs throughout all their stores every 3 months each shop donates £3000 to charities voted by the customers. 13The stakeholders I looked into at British Heart Foundation are: Community- The community are interested in the charity as being a strong local employer of local people, they are also interested in how ethical the charity is being. They have a lot of power being a stakeholder in a charity as the charity depends on donations, and most of these will come from the local community and if the community aren’t onboard with the charity then they would struggle to raise the amount of money they want. BHF communicate with the community online on their website there is the option to sign up to ‘HealthUnlocked’ which is BHFs online community for people with heart conditions and members of family who have suffered from heart conditions can come together and receive advice and support from people who have been through or are going through similar situations. This is a really intelligent idea, as it brings the community together as they can help each other with BHFs help. http://www.jlpsuppliers.com/isupplier/index.html 11http://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/our-responsibilities/our-progress-and-reports/12John_Lewis_Partnership_Corporate_Social_Responsibility_report_2010.pdf https://www.johnlewis.com/our-shops/helping-the-community 13 10
Customers- The customers are interested in the charity providing good quality products in its charity shops for reasonable prices they also are interested in the services that the charity would provide being of a high standard and very informative. The customers have some power as a stakeholder as the charity would bene?t from returning customers paying for their products and services. BHF communicate with their customers in a few ways. On the website they give their customers the option of a postal address, a phone number and an email address. This gives the customers the choice of how they want to contact BHF, this is because BHF like to hear from their customers whether its a complaint or compliment. This show that BHF are con?dent in the customer service they provide and are open to any improvements they could make. 14Employees & volunteers- As a charity they have both employees and volunteers working for them, they would be interested in contributing to the charity in every way they can. They will also work with as many customers as possible trying to achieve as much money donated as they can. They have power as if the charity didn’t have any employees or volunteers they wouldn’t have anyone to provide any goods or services and wouldn’t be able to raise any money at all. They communicate with their employees with a rewards scheme based on their work ethic. These rewards can include things such as a good pension scheme for all employees and also free gym membership to encourage healthy living. Also bonuses are awarded quarterly if targets are met. This motivates the employees to work better for the charity so they they can receive more bonuses. For the volunteers they aren’t communicated with as well as anyone else, they will be instructed by and have communication with a manager of the store they work at. But to encourage the number of people that volunteer BHF offer some services for the volunteers like gaining quali?cations like an NVQ ( National Vocational Quali?cation) and they also offer volunteers between the ages of 15-24 the chance to work towards the Duke of Edinburgh award. 15Board of Trustees- The Board will be interested in the charity reaching all its goals, the main one being reaching its milestone for money raised a year. They will also want to lower the cardiovascular rates as much as they can. They have a lot of power as without the board there would be no sense of direction and the chains of command and communication would be broken and nothing would get accomplished. The Board of Trustees hold AGMs (Annual General Meetings). These are meetings between the Trustees to discuss problems that have arose and how close they are to meeting their annual targets. They will also discuss how close they are to meeting their 2020 goals and if they’ve veered off track and what they can do if this happens. However, the strange thing about BHFs AGM is that although the Board are there it is a free event and anyone is welcome to come along and meet the Board and ?nd out how the money that is being raised is being spent and if its being put to good use. 16 https://en.wikipedia.org/wiki/King%27s_College_London 14https://www.bhf.org.uk/health-at-work/meet-the-members 15https://www.chesterchronicle.co.uk/news/chester-cheshire-news/british-heart-foundation-hold-agm-5178582 16 11
B.M2 – how the structures of the businesses allow them to reach their aims ; objectives John Lewis operate under a holocratic structure, a holocratic structure offers a holistic approach to running a business where responsibility and authority are distributed amongst the workforce. One disadvantage of other structures is the level of bureaucracy that can appear to get in the way of getting on with the job. Holocracy claims to remove this problem by devolving responsibility and relying on very clear roles, aims and objectives, which, in turn, rely on very clear communication and trust. (see appendix 1) John Lewis have set themselves goals that they want to meet by 2028, as this will be 100 years since the constitution was written by Spedan Lewis. They want to have a stronger brand whilst still continuing to grow. They also want to offer better jobs with better pay to employees whilst also improving the experience for their customers. As well as this they want to increase productivity whilst maintaining high job satisfaction and keeping ?nancial sustainability. Lastly, they also want to improve pro?tability, building their ?nancial strength so they can take on more opportunities. John Lewis’ holocratic structure helps them achieve their goals as it provides a ?at management that distributes authority, this helps as all employees will feel a level of responsibility to complete what they need to to reach the goals that have been set. Also a holocratic structure leads to greater ef?ciency, agility and accountability, this will help John Lewis reach their 2028 goals as these traits are carried across all employees they will perform at a higher rate and also will be trusted by their co-workers whilst working towards their goals. Being a business that uses a holocratic structure they will use ‘link roles’ which is when multiple groups come together and ensure that they are operating in congruence with the business’ overall goal. This will help John Lewis as teamwork is one of the most important traits inside a business and if using a holocratic structure can bring their employees together whilst they also understand their own individual responsibility and objectives, then John Lewis will be very successful in reaching their goals, as their employees will understand what is expected of them and will want to exceed the expectations that have been set. For John Lewis to build a stronger brand whilst continuing to grow they will need to examine what their competition is doing well and what they’re problems are, this will help John Lewis ?nd a strategic advantage over their competition, which will result in their brand growing stronger against their competition. The holocratic structure will help with this as it provides dynamic roles over static jobs for the employees, this will help as the employees won’t be limited to one role they will have multiple roles whilst merging and intertwining with other employees. This will help John Lewis build a stronger brand as employees who are working on other things can be pulled over to help John Lewis ?nd this advantage over their competition as the more employees working together on the same objective will get it completed faster. 12
Also, for John Lewis to be able to achieve a greater level of customer satisfaction they will 17need to ensure that all employees no matter their rank treat the customers with paramount respect and providing them with the best experience possible. Although John Lewis already provide an impressive customer service compared to their competitors, it can always be improved as customers are at the heart of any business. Their holocratic structure will help them reach this as one of the main features of a holocratic structure is that they provide more transparent rules, this means that everyone is obliged to follow the same rules no matter your level in the business the rules are visible to all. This will help with the issue of how to get all employees to treat the customers correctly. Their structure will ensure that all employees from part-time employees to the managers will follow the rules they set for customer satisfaction, this will then help John Lewis improve customer satisfaction as a whole. 18Lastly, for John Lewis to increase productivity whilst maintaining high job satisfaction they 19will need to implement a continuous improvement approach. This will help because improving productivity is an ongoing activity and setting employees regular goals and making sure that they are reaching them will increase productivity. Also, John Lewis could award the employees who meet or exceed the most goals that have been set would also increase the employees motivation to complete these goals set for them. Their structure will help them reach this as a holocratic structure distributes authority, this means that authority is regularly distributed to teams and that decisions are made locally. Seen as decisions are made locally this improvement approach would be easy to implement and regulate. As all the local managers would be in control of their sector making sure all employees in their group are meeting their goals. Then even if most employees meet their goals then John Lewis’ productivity will grow massively as all employees will be focused on meeting their goals and receiving bonuses, whilst maintaining high job satisfaction. 20British Heart Foundation operate under a ?at matrix structure. A ?at structure operates with less bureaucracy and therefore decision making can be quicker, also the more the business grows the more employees that the managers will be responsible for. A matrix structure is complex, it brings together teams of people depending on their abilities to work on speci?c projects. In a matrix structure each employee answers to two supervisors, a functional supervisor and a project supervisor (see appendix 2). British Heart Foundation have set goals and plans to reach these goals for each area of their charity this includes research, Prevention survival and support, Listen Engage and In?uence, Grow Income, World-Class Organisation. British Heart Foundations ?rst set of goals was in their research department where they wanted to understand the social, genetic, cellular and molecular causes of heart and circulatory disease and discover better ways of preventing, diagnosing and treating heart and circulatory disease whilst enhancing translation of these research discoveries into better patient care. http://whatis.techtarget.com/de?nition/holacracy 17http://www.foxbusiness.com/features/2013/04/01/5-steps-to-set-and-achieve-your-business-goals.html 18https://www.forbes.com/sites/jiawertz/2017/06/02/7-principles-to-building-a-strong-brand/#54b8c205781a 19https://www.holacracy.org/how-it-works/ 20 13
British Heart Foundations second set of goals was in Prevention, survival and support where their goals are to increase the rate of early diagnosis and effective treatment of all types of heart diseased to increase survival rates from acute events whilst supporting patients and their carers in the management of their condition. British Heart Foundation next set of goals was in the department of Listen, Engage and In?uence where they wanted to work with national and regional governments to make heart disease a priority for politicians and senior NHS decision-makers and to actively engage patients, supporters and volunteers, health and research professionals, staff, and our partners to inform and shape our work whilst increasing awareness that heart disease is a problem that needs to be addressed now. British Heart Foundations fourth set of goals from the department of Grow Income are to grow their annual net income by 20% to £150m, by 2020 and to enhance their existing fundraising activities to maximise their income from their sources whilst exploring new ways to generate income and build sustainable income streams by 2020. British Heart Foundations last set of goals from World-Class Organisation are to run their operations and processes in the most ef?cient and cost-effective ways and to maximise the use and impact of information and technology whilst attracting and retaining high-quality staff and volunteers who share our values and believe passionately in the BHF vision. British Heart Foundations matrix structure will help them meet all their goals as using a matrix structure allows British Heart Foundation to break down traditional barriers, improving communication across the entire organisation. This increase in communication lessens the need for departments to meet regularly, this reduces costs and improves the charity’s coordination. This will help the charity reach their goals by 2020 as this allows British Heart Foundation to align the different types of goals into their corresponding streams and for certain committees to work towards. Being a matrix structure employees will report to both a functional and project manager, this will ensure that all employees are on track for working towards the charity’s goals. When the managers meet with each other, if they realise that some of the committees are struggling with their corresponding goals, then committees that are ahead of target for their goals could move some of the employees over to the struggling committees. This will help the charity stay level and well balanced and not be over thrown with the amount of goals they have set themselves 14
AB.D1 – evaluate the reasons of success for the businesses There are many different ways to measure success for businesses and charities. The main measure of success is the level of its pro?tability, how much revenue its making yearly and how satis?ed their customers are employees are. However, for charities it can be slightly different as they don’t aim to make a pro?t and don’t measure themselves based on revenue. They would measure success on a very different basis for example, howe much money has been donated by the community, how much money can be spent on research after paying for all the costs. Its because of these differences that makes it complicated to compare a business to a charity, when their aims and goals are so different. John Lewis are one of the most successful UK based companies and its structure I being revised and followed by many businesses, as they’ve found that John Lewis’ structure is one of the main reasons for their success. They operate under a holocratic structure and this has proven to be very useful for them and has largely contributed to their success. This is because their structure allows them to distribute the authority in their business giving all employees a sense of major responsibility for the business, this means they will take their roles more seriously. However, in John Lewis’ structure roles are very ?uid and if employees need to be moved around it is easily completed. Within John Lewis there are a very clear set of rules that everyone has to abide by, this helps the coordination of the business as all employees are on the same page. Another reason for John Lewis’ success is their diligence to meet their 2028 goals, which they are on target for. The goals they have set are typical goals for an already majorly successful business. Setting these goals will give John Lewis a clear pathway on what to achieve and how to get there. These gals will help them grow as a brand as a business. They are currently on track to meet their goals, this shows that setting these goals have captured the attention of all employees, who are all working towards these goals to help themselves as well as the business. This contributes to their success as these goals have boosted the company into the next gear, motivating all employees to work more productively, this helps them become more successful as they will improve employee and customer satisfaction. John Lewis are also becoming more successful due to their close relations with all their stakeholders, this is important as stakeholders are an important part of any organisation. John Lewis have close relationships with all their stakeholders, but the most in?uential relationships would be their employees and their suppliers. Their relationship with their employees is very important for John Lewis a they call all employees partners in the business. This means that all employees receive dividends as a yearly bonus, this is why their employees are one of the most impressive workforces in the UK. Their partners all work together as individuals to achieve the same goals this is because they represent a tight and motivated workforce which are all bound together as they are all partners in the business. The relationship with their supplier is also a main reason for their success, this is because the relationship with their suppliers is more of an equilibrium rather then a relationship. Although, their suppliers do sell John Lewis the products they sell to their customers they also work together to deliver the products to the customers. John Lewis run a scheme where they have some of their most trusted suppliers deliver the products they supply to the customers that have purchased them, this strengthens their relationship as it shows that they have a level of trust and respect for each other. 15
As British Heart Foundation are a charity they measure their success differently to what John Lewis would as they wouldn’t measure their pro?tability of their revenue, but would measure how many people use their online community ‘HealthUnlocked’ and how much money they are donating to medical colleges for research. British Heart Foundation are one of the biggest UK based charities, and help many people suffering with cardiovascular diseases. One reason for their success is the ef?cient use of their ?at matrix structure, as this allows them to be ?uid with their employees and volunteers but have clear departments for them to work in. British Heart Foundations structure allows them to use employees and volunteers wisely in order to be able to achieve what is needed of them. This helps contributes to their success as employees and volunteers are motivated to work due to the number of rewards provide to their workforce, this helps the employees and volunteers work towards raising more money for the charity and providing more money for research. Another reason for British Heart Foundations success is their wide national scope providing a large audience for the charity to communicate with the community. Also British Heart Foundations relationship with the community is very strong. They provide a service on their web site, its an online community called ‘HealthUnlocked’ they provide this to the community so anyone who is suffering with or has overcome cardiovascular diseases can come together and give and receive advice from each other along with British Heart Foundation professionals also giving support. Providing this to such a wide range audience provides the charity with an immaculate customer satisfaction, as most of their customers will use their online community as it brings the wide audience together as one. ? 16
References https://www.holacracy.org/how-it-works/https://www.forbes.com/sites/jiawertz/2017/06/02/7-principles-to-building-a-strong-brand/#54b8c205781ahttp://www.foxbusiness.com/features/2013/04/01/5-steps-to-set-and-achieve-your-business-goals.htmlhttp://whatis.techtarget.com/de?nition/holacracyhttps://www.chesterchronicle.co.uk/news/chester-cheshire-news/british-heart-foundation-hold-agm-5178582https://www.bhf.org.uk/health-at-work/meet-the-membershttps://en.wikipedia.org/wiki/King%27s_College_Londonhttps://www.johnlewis.com/our-shops/helping-the-communityhttp://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/our-responsibilities/our-progress-and-reports/John_Lewis_Partnership_Corporate_Social_Responsibility_report_2010.pdfhttp://www.jlpsuppliers.com/isupplier/index.htmlhttps://www.tutor2u.net/business/reference/stakeholders-introductionhttps://www.bhf.org.uk/about-us/bhf-strategyhttps://www.bhf.org.uk/about-us/who-we-are/how-we-are-governedhttps://en.wikipedia.org/wiki/John_Lewis_(department_store)#Australiahttps://en.wikipedia.org/wiki/John_Lewis_(department_store)#cite_note-annualreport-1https://www.johnlewispartnership.co.uk/about/our-principles.html? 17
Appendices Appendix 1. Appendix 2. 18
Appendix 3 19
Appendix 4 20
