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Profs. Olivier Roche, Salisbury University; Frederick
Freundlich, Mondragon University; Frank Shipper,
Salisbury University; & Charles C. Manz, University of
Massachusetts
Copyright 2015 1
Freedom for
Shared
Collaboration
Continuous
Zero
Freedom for
Shared Leadership
Directive Shared
Freedom for
Shared
Ownership
Sole
Proprietorship
Shared
Copyright 2015 2
An ethical, dynamic, empowering,
freedom-based process where all
are (1) encouraged to share
innovative ideas and (2) then are
supported with appropriate
resources to develop these ideas
and (3) enabled to share in the
rewards of success.
Copyright 2015 3
•ESOP’s
•Gain Sharing
•Profit Sharing
•Stock Options
Shared
Ownership
•Participative Management
•Self-Leadership
•Direct Communications Authority
•Flat Structure
Shared
Leadership
•High Involvement Culture
•Autonomous Teams
•Lattice Structure
•Open Book Management
Shared
Collaboration
Shared
Entrepre-
neurship
Copyright 2015 4
• Coops
• Mutual Companies
Copyright 2015 5
 Common Elements
Shared Leadership
High Performance Work
Systems
1. Shared Rewards
2. Involvement/Entrepreneurship
3. Obtaining Intellectual Capital
a. Recruitment
b. Selection
4. Retaining & Building Intellectual
Capital
a. Socialization
b. Training & Development
 Distinctive Elements
World’s Largest Coop
>260 Coop’s
 One Person, One Vote
Strategic Refocusing
Copyright 2015 6
Copyright 2015 7
Shared
Leader-
ship
Copyright 2015 8
“In our organization, we have
the annual meeting of the
General Assembly. All the
members can attend. Each
person has one vote.
Members can ask any
question and the
management team must give
their answer in front of
everyone.”
Iñigo Ucin, Managing Director,
Danobat Group
Copyright 2015 9
Hierarchical Concentric
Command & Control Facilitation & Coordination
Copyright 2015
Shared
Leader-
ship
Shared
Rewards
Copyright 2015 11
 Short-Term
Patronage
 Long-Term
Coop Ownership
Fully vested after 3-5
years
Copyright 2015 12
Generic Coop Example
Shared
Leader-
ship
Shared
Rewards
Engage-
ment
Copyright 2015 13
Copyright 2015 14
“Inter-cooperation should be evident: between individual co-
operatives, between subgroups and between the Mondragón co-
operative experience and Basque co-operative organisations, and co-
operative movements in Spain, Europe and the rest of the world.”
Shared
Leader-
ship
Shared
Rewards
Engage-
ment
R & S
Copyright 2015 15
 Recruitment
◦ W.O.M./Reputation
◦ Internships
 Selection
◦ Apprenticeships
“At the university, the
practice of internships has
become institutionalized.”
“The candidate is offered a 2 to 3 year “fixed term member”
position, that is, the candidate has all the rights of membership
except full job security. during these years as a fixed term member
the candidate builds an emotional relationship with the values and
management style of the co-op. Following this transition period,
the fixed term member may be proposed and accepted as a full,
permanent member.”
Mikel Zabala, Director of Human Relations & Social Affairs
Copyright 2015 16
Shared
Leader-
ship
Shared
Rewards
Engage-
ment
R & S Socializ-
ation
Copyright 2015 17
“… acceptance of a
democratically
organised company
based on the
sovereignty of the
General Assembly,
electing governing
bodies and
collaborating with
managerial bodies.”
Copyright 2015 18
A Defensive Strategy An Offensive Strategy
Copyright 2015 19
&
Shared
Leader-
ship
Shared
Rewards
Engage-
ment
R & S Socializ-
ation
T & D
Copyright 2015 20
Mondragon University
Free Tuition
Open To All -- Based on Merit
Internships
Professional Development
12 Technical Centers
Copyright 2015 21
Shared
Leader-
ship
Shared
Rewards
Involve-
ment
Socializ-
ation
R & S
T & D
Copyright 2015 22
1. 90.4% of the population
aged 20 to 24 in tertiary
education
2. 16.6% Unemployment
Rate (Lowest in Spain)
3. 32,500€ ($43,500) gross
domestic product per
inhabitant
4. University of Mondragon
& 12 Technical Centers
1. 64% above high school
education
2. 7.4% Unemployment
Rate
3. $74,435 Average
Earnings
4. Stanford University
Silicon Valley Gipuzkoa
Copyright 2015 24
Copyright 2014 25
Case Contact Interviews Draft Completion Results
W.L Gore & Associates √ √ √ √ Cases, A, Chap
Herman Miller √ √ √ √ Cases, 2A, Chap
KCI √ √ √ √ Cases, A
HCSS √ √ √ √ Cases, A
TEOCO √ √ √ √ Cases, A
MBC Holdings
(Maryland Brush
Company)
√ √ √ √ Case
Equal Exchange √ √ √ √ Case, A
SRC Holdings √ √ √ √ Case
Mondragon
Cooperative
Corporation
√ √ √ √ Submitted
Atlas Container
Company
√ √ √ √
Mid South Building
Supply
√ √ Wint
er Copyright 2015 26
1. Shipper, F., Manz, C. C.,
Manz, K. P., & Harris B.W.
(2013). “Collaboration that
goes Beyond Cooperation: It’s
Not Just ‘If’ but ‘How’ Sharing
Occurs that Makes the
Difference.” Organizational
Dynamics, Volume 42, Issue
2, pp. 100–109.
2. Manz, C. C, Shipper, F., &
Stewart, G. L. (2009).
“Everyone a Team Leader:
Shared Influence at W. L. Gore
& Associates.” Organizational
Dynamics, Volume 38,
Number 3, pp. 239-244.
http://www.sciencedirect.com/science/journal/00902616
Copyright 2014 27
Manz, C. C., Manz, K. P.,
Adams, S. B., & Shipper, F.
(2011). “Sustainable
Performance with Values
Based Shared Leadership:
A Case Study of a Virtuous
Organization.” Canadian
Journal of Administrative
Sciences, 28, 284-296.
Manz, C. C., Manz, K. P.,
Adams, S. B., & Shipper, F.
(2010). “A Model of Values
Based Shared Leadership
and Sustainable
Performance.” Journal of
Personnel Psychology, 9,
212-217.
28
Shipper, F., Manz, C. C.,
Nobles, B., Manz, K. P.(2014).
“Shared Entrepreneurship:
Toward an Empowering,
Ethical, Dynamic, and
Freedom-Based Process of
Collaborative Innovation.”
Organization Management
Journal, 11 , 133-146
1. Street, V. L., Weer, C., & Shipper, F. (2011). “KCI
Technologies, Inc. – Engineering the Future, One
Employee at a Time.” Journal of Business Case
Studies, 7(1): 57-68.
2. Roche, O., & Shipper, F. (2011). “Heavy
Construction Systems Specialists, Inc. [HCSS].”
Journal of Business Case Studies, 7(2): 29-46.
3. Calo, T. P., Roche, O., & Shipper, F.
(January/February 2012). “Principled
Entrepreneurship And Shared Leadership: The
Case Of TEOCO (The Employee Owned Company)”
Journal of Business Case Studies, 8(1):11-36.
4. Hoffman, R. C., Brown. M. O. & Shipper, F.
(2013). “MBC Ventures, Inc.: An Employee Stock
Ownership Plan with a Union Partner.” Journal of
Business Case Studies. 9(5): 387-403.
5. Street, V. L., Street, M. D., Weer, C. H, & Shipper,
F. (2014). “SRC Holdings: Winning the Game
While Sharing the Prize.” Journal of Business Case
Studies. 10(1): 43-58.
http://journals.cluteonline.com/index.php/JBCS
Copyright 2014 29
 Shipper, F., Stewart, G.L., & Manz,
C. C. (2014). “W. L. Gore &
Associates Has Created an Entire
Shared Leadership Culture” in
Share, Don’t Take the Lead,
Pearce, Manz, C. C., & Sims, Jr., H.
P. Charlotte, NC: Information Age
Publishing, 125-145.
 Adams, S. B., Shipper, F., Manz, K.
P., & Manz, C. C. (2014). “Herman
Miller Furniture Uses Shared
Leadership to Build Positive Values
and Creativity” in Share, Don’t
Take the Lead, Pearce, C. L., Manz,
C. C., & Sims, Jr., H. P. Charlotte,
NC: Information Age Publishing,
pp. 109-123.
Copyright 2014 30
1. Strategic Management: An Integrated
Approach (10th & 11th Ed.) Hill, Jones, &
Schilling, Boston: Houghton Mifflin.
2. Crafting and Executing Strategy: The Quest
for Competitive Advantage: Concepts and
Cases, (18th & 19th Ed.), Thompson,
Strickland, Gamble, New York: McGraw-Hill.
3. Strategic Management, (10th & 11th Ed.), Hitt,
Ireland & Hoskisson, Mason, OH: Cengage.
4. Organization Theory and Design (10th & 11th
Ed.), Daft, Mason, OH: Southwestern
Cengage Learning.
5. Competing for Advantage. Hoskisson, Hitt,
& Ireland,(4th Ed.), Mason, OH: Cengage.
6. Essentials of Strategic Management, (4th
Ed.), Gamble, Peteraf, & Thompson, New
York: McGraw-Hill.
7. Understanding Business Strategy (4th Ed.),
Ireland, Hoskisson, & Hitt, Mason, OH:
Cengage.
Copyright 2015
31
Over 1,000,000 Copies in Print!
Adopted in More Than
 700 US Universities
 70% of the Top Undergraduate Business Schools
 30% of the Top Graduate Business Schools
Employee-Ownership Cases in Textbooks
Copyright 2014 32
and published in English, Spanish, Korean, Portuguese
and Chinese
Also, Adopted in Universities on Six of the Seven Continents
Copyright 2015 33
Copyright 2015
Over 12,800 views
34
Example Countries Views
United States 9212
United Kingdom 1445
Canada 603
Australia 542
India 539
Thailand 438
Germany 308
Singapore 293
Trinidad and Tobago 264
Malaysia 214
France 184
Spain 177
Italy 164
Ireland 153
Nepal 146
Pakistan 145
Philippines 133
Korea, Republic of 123
35
 Lincoln Electric
 Nucor
 Worthington Industries
 SRC Holdings
 W. L. Gore & Associates
 Herman Miller
 eBay
 Semco S/A , Sao Paulo,
Brazil
 CH2M Hill, Englewood, CO
 NewAge Industries,
Southampton, PA
 Zingerman's Community of
Businesses, Ann Arbor, MI
 KCI – Hunt Valley, MD
 HCSS – Sugar Land, TX
 TEOCO – Fairfax, VA
 MBC Ventures–Baltimore, MD
 Equal Exchange - West Bridgewater,
MA
 Atlas Container - Severn, MD
 Mondragon – Spain
 Pritchett Controls – Beltsville, MD
 Mid South Building Supply -
Springfield, VA
 John Lewis Partnership - UK
Copyright 2015 36

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Shipper_SlidesMondragonJanuary2015 (1).pptx

  • 1. Profs. Olivier Roche, Salisbury University; Frederick Freundlich, Mondragon University; Frank Shipper, Salisbury University; & Charles C. Manz, University of Massachusetts Copyright 2015 1
  • 2. Freedom for Shared Collaboration Continuous Zero Freedom for Shared Leadership Directive Shared Freedom for Shared Ownership Sole Proprietorship Shared Copyright 2015 2
  • 3. An ethical, dynamic, empowering, freedom-based process where all are (1) encouraged to share innovative ideas and (2) then are supported with appropriate resources to develop these ideas and (3) enabled to share in the rewards of success. Copyright 2015 3
  • 4. •ESOP’s •Gain Sharing •Profit Sharing •Stock Options Shared Ownership •Participative Management •Self-Leadership •Direct Communications Authority •Flat Structure Shared Leadership •High Involvement Culture •Autonomous Teams •Lattice Structure •Open Book Management Shared Collaboration Shared Entrepre- neurship Copyright 2015 4 • Coops • Mutual Companies
  • 6.  Common Elements Shared Leadership High Performance Work Systems 1. Shared Rewards 2. Involvement/Entrepreneurship 3. Obtaining Intellectual Capital a. Recruitment b. Selection 4. Retaining & Building Intellectual Capital a. Socialization b. Training & Development  Distinctive Elements World’s Largest Coop >260 Coop’s  One Person, One Vote Strategic Refocusing Copyright 2015 6
  • 9. “In our organization, we have the annual meeting of the General Assembly. All the members can attend. Each person has one vote. Members can ask any question and the management team must give their answer in front of everyone.” Iñigo Ucin, Managing Director, Danobat Group Copyright 2015 9
  • 10. Hierarchical Concentric Command & Control Facilitation & Coordination Copyright 2015
  • 12.  Short-Term Patronage  Long-Term Coop Ownership Fully vested after 3-5 years Copyright 2015 12 Generic Coop Example
  • 14. Copyright 2015 14 “Inter-cooperation should be evident: between individual co- operatives, between subgroups and between the Mondragón co- operative experience and Basque co-operative organisations, and co- operative movements in Spain, Europe and the rest of the world.”
  • 16.  Recruitment ◦ W.O.M./Reputation ◦ Internships  Selection ◦ Apprenticeships “At the university, the practice of internships has become institutionalized.” “The candidate is offered a 2 to 3 year “fixed term member” position, that is, the candidate has all the rights of membership except full job security. during these years as a fixed term member the candidate builds an emotional relationship with the values and management style of the co-op. Following this transition period, the fixed term member may be proposed and accepted as a full, permanent member.” Mikel Zabala, Director of Human Relations & Social Affairs Copyright 2015 16
  • 17. Shared Leader- ship Shared Rewards Engage- ment R & S Socializ- ation Copyright 2015 17
  • 18. “… acceptance of a democratically organised company based on the sovereignty of the General Assembly, electing governing bodies and collaborating with managerial bodies.” Copyright 2015 18
  • 19. A Defensive Strategy An Offensive Strategy Copyright 2015 19 &
  • 20. Shared Leader- ship Shared Rewards Engage- ment R & S Socializ- ation T & D Copyright 2015 20
  • 21. Mondragon University Free Tuition Open To All -- Based on Merit Internships Professional Development 12 Technical Centers Copyright 2015 21
  • 23. 1. 90.4% of the population aged 20 to 24 in tertiary education 2. 16.6% Unemployment Rate (Lowest in Spain) 3. 32,500€ ($43,500) gross domestic product per inhabitant 4. University of Mondragon & 12 Technical Centers 1. 64% above high school education 2. 7.4% Unemployment Rate 3. $74,435 Average Earnings 4. Stanford University Silicon Valley Gipuzkoa
  • 26. Case Contact Interviews Draft Completion Results W.L Gore & Associates √ √ √ √ Cases, A, Chap Herman Miller √ √ √ √ Cases, 2A, Chap KCI √ √ √ √ Cases, A HCSS √ √ √ √ Cases, A TEOCO √ √ √ √ Cases, A MBC Holdings (Maryland Brush Company) √ √ √ √ Case Equal Exchange √ √ √ √ Case, A SRC Holdings √ √ √ √ Case Mondragon Cooperative Corporation √ √ √ √ Submitted Atlas Container Company √ √ √ √ Mid South Building Supply √ √ Wint er Copyright 2015 26
  • 27. 1. Shipper, F., Manz, C. C., Manz, K. P., & Harris B.W. (2013). “Collaboration that goes Beyond Cooperation: It’s Not Just ‘If’ but ‘How’ Sharing Occurs that Makes the Difference.” Organizational Dynamics, Volume 42, Issue 2, pp. 100–109. 2. Manz, C. C, Shipper, F., & Stewart, G. L. (2009). “Everyone a Team Leader: Shared Influence at W. L. Gore & Associates.” Organizational Dynamics, Volume 38, Number 3, pp. 239-244. http://www.sciencedirect.com/science/journal/00902616 Copyright 2014 27
  • 28. Manz, C. C., Manz, K. P., Adams, S. B., & Shipper, F. (2011). “Sustainable Performance with Values Based Shared Leadership: A Case Study of a Virtuous Organization.” Canadian Journal of Administrative Sciences, 28, 284-296. Manz, C. C., Manz, K. P., Adams, S. B., & Shipper, F. (2010). “A Model of Values Based Shared Leadership and Sustainable Performance.” Journal of Personnel Psychology, 9, 212-217. 28 Shipper, F., Manz, C. C., Nobles, B., Manz, K. P.(2014). “Shared Entrepreneurship: Toward an Empowering, Ethical, Dynamic, and Freedom-Based Process of Collaborative Innovation.” Organization Management Journal, 11 , 133-146
  • 29. 1. Street, V. L., Weer, C., & Shipper, F. (2011). “KCI Technologies, Inc. – Engineering the Future, One Employee at a Time.” Journal of Business Case Studies, 7(1): 57-68. 2. Roche, O., & Shipper, F. (2011). “Heavy Construction Systems Specialists, Inc. [HCSS].” Journal of Business Case Studies, 7(2): 29-46. 3. Calo, T. P., Roche, O., & Shipper, F. (January/February 2012). “Principled Entrepreneurship And Shared Leadership: The Case Of TEOCO (The Employee Owned Company)” Journal of Business Case Studies, 8(1):11-36. 4. Hoffman, R. C., Brown. M. O. & Shipper, F. (2013). “MBC Ventures, Inc.: An Employee Stock Ownership Plan with a Union Partner.” Journal of Business Case Studies. 9(5): 387-403. 5. Street, V. L., Street, M. D., Weer, C. H, & Shipper, F. (2014). “SRC Holdings: Winning the Game While Sharing the Prize.” Journal of Business Case Studies. 10(1): 43-58. http://journals.cluteonline.com/index.php/JBCS Copyright 2014 29
  • 30.  Shipper, F., Stewart, G.L., & Manz, C. C. (2014). “W. L. Gore & Associates Has Created an Entire Shared Leadership Culture” in Share, Don’t Take the Lead, Pearce, Manz, C. C., & Sims, Jr., H. P. Charlotte, NC: Information Age Publishing, 125-145.  Adams, S. B., Shipper, F., Manz, K. P., & Manz, C. C. (2014). “Herman Miller Furniture Uses Shared Leadership to Build Positive Values and Creativity” in Share, Don’t Take the Lead, Pearce, C. L., Manz, C. C., & Sims, Jr., H. P. Charlotte, NC: Information Age Publishing, pp. 109-123. Copyright 2014 30
  • 31. 1. Strategic Management: An Integrated Approach (10th & 11th Ed.) Hill, Jones, & Schilling, Boston: Houghton Mifflin. 2. Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases, (18th & 19th Ed.), Thompson, Strickland, Gamble, New York: McGraw-Hill. 3. Strategic Management, (10th & 11th Ed.), Hitt, Ireland & Hoskisson, Mason, OH: Cengage. 4. Organization Theory and Design (10th & 11th Ed.), Daft, Mason, OH: Southwestern Cengage Learning. 5. Competing for Advantage. Hoskisson, Hitt, & Ireland,(4th Ed.), Mason, OH: Cengage. 6. Essentials of Strategic Management, (4th Ed.), Gamble, Peteraf, & Thompson, New York: McGraw-Hill. 7. Understanding Business Strategy (4th Ed.), Ireland, Hoskisson, & Hitt, Mason, OH: Cengage. Copyright 2015 31 Over 1,000,000 Copies in Print!
  • 32. Adopted in More Than  700 US Universities  70% of the Top Undergraduate Business Schools  30% of the Top Graduate Business Schools Employee-Ownership Cases in Textbooks Copyright 2014 32
  • 33. and published in English, Spanish, Korean, Portuguese and Chinese Also, Adopted in Universities on Six of the Seven Continents Copyright 2015 33
  • 35. Example Countries Views United States 9212 United Kingdom 1445 Canada 603 Australia 542 India 539 Thailand 438 Germany 308 Singapore 293 Trinidad and Tobago 264 Malaysia 214 France 184 Spain 177 Italy 164 Ireland 153 Nepal 146 Pakistan 145 Philippines 133 Korea, Republic of 123 35
  • 36.  Lincoln Electric  Nucor  Worthington Industries  SRC Holdings  W. L. Gore & Associates  Herman Miller  eBay  Semco S/A , Sao Paulo, Brazil  CH2M Hill, Englewood, CO  NewAge Industries, Southampton, PA  Zingerman's Community of Businesses, Ann Arbor, MI  KCI – Hunt Valley, MD  HCSS – Sugar Land, TX  TEOCO – Fairfax, VA  MBC Ventures–Baltimore, MD  Equal Exchange - West Bridgewater, MA  Atlas Container - Severn, MD  Mondragon – Spain  Pritchett Controls – Beltsville, MD  Mid South Building Supply - Springfield, VA  John Lewis Partnership - UK Copyright 2015 36

Editor's Notes

  1. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  2. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  3. Danobat is a blending of two words in Basque and means roughly "all one.”
  4. The traditional hierarchical corporate growth pattern creates more and more levels of administrators who are more and more removed from the product or service the firm is offering. In addition, they represent more and more administrative overhead costs. Shared entrepreneurship firms grow concentrically, just as a hen and chicks plant does. In the early stages of growth, they can and do share resources similar to how the hen sends out runners to establish a chick.
  5. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  6. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  7. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  8. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  9. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  10. Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies by David G. Allen, Phillip C. Bryant, and James M. Vardaman Academy of Management Perspectives, 2010, 48-64.
  11. $44,500 in U.S. 2013 & 7.4% unemployment rate Consorzio Cooperative Costruzioni is one of Italy’s leading General Contractors, bringing together 230 co-operatives with a workforce of more than 20,000. Total annual sales continues to rise and now stands at almost €2 billion. CCC works to acquire new contracts (major recent projects include the restoration of the Teatro della Scala in Milan, the Brebemi Motorway and the Mestre Rail Link) and source products for partner co-operatives (the most important categories are concrete, cement, steel products, bricks and petroleum products). CCC, established in 1911, currently has offices in almost all of Italy’s regional capitals. Information:  Name: Consorzio Cooperative Costruzioni Email: ccc@ccc-acam.it Address: Via Marco Emilio Lepido, 182/2 City: Bologna Country: Italy Phone: 051 3161 111 Website: http://www.ccc-acam.it
  12. Based on only two of the five textbooks whose publishers were will to share their lists of adoptions.