Salad CEO Shares Key Lessons After 4 Years of Employee Ownership

Salad's transition to employee ownership (EO), led by founder Arabella Lewis-Smith, offers a candid case study for businesses considering the EO path. Reflecting on their four-year journey, Arabella highlights both rewards and challenges with valuable lessons for others.

Positive Outcomes

1. Improved Business Performance: Since transitioning to an Employee Owned Trust (EOT) in 2021, Salad has seen stronger financial performance, staff retention, and client satisfaction, driven by higher trust and renewed passion.

2. Enhanced Team Alignment: The EO model fostered unity and common purpose beyond their already strong culture. Employees developed deeper ownership, greater commercial awareness, and more involvement in decision-making.

3. Shared Leadership: Arabella found management became easier as responsibilities distributed across the team. Her connection to the company grew stronger while no longer bearing the burden of being the sole decision-maker.

4. Sustainable Succession: EO enabled transparent conversations about future leadership, providing a gradual succession plan that protects the company's culture and values while empowering the next generation.

5. Increased Collaboration: The new governance structure has promoted a more democratic leadership style where employees genuinely shape the company's direction.

6. Community Connections: The transition opened doors to a network of EO businesses and new opportunities.

Challenges and Lessons Learned

1. Avoiding Division: Initial decisions unintentionally created "us and them" dynamics:

   • Excluding founders from the employee council created disconnection

   • Initially excluding founders from beneficiary payments drew artificial lines

2. Evolving Employee Voice: They shifted from a rigid Council to a broader "Employee Voice" concept with clearer reporting structures. The transition required time to determine what EO truly meant for Salad.

3. Intentional Implementation: Success required careful planning, open communication, and directly addressing concerns about what EO meant for individual team members.

4. Cultural Investment: Regular "Vision days" bring the team together for big-picture collaboration and values alignment.

5. Continuous Adaptation: The EO journey requires ongoing learning and refinement, with Salad actively connecting with other EO businesses to improve their approach.

Looking Forward

1. Financial Freedom Planning: Discussions have begun about next steps after achieving financial freedom.

2. Addressing Future Challenges: Arabella acknowledges the need to remain vigilant about "nuanced challenges."

The overarching message is that while the EO journey has challenges, Arabella firmly believes "the benefits have far outweighed the difficulties" as they enter their fifth year of employee ownership.

Salad’s experience shows that employee ownership can deliver significant benefits-greater engagement, resilience, and sustainability-but it also demands thoughtful leadership, clear communication, and a willingness to let go and trust the team. Their journey offers a roadmap and reassurance for others considering this transformative step.

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Advice for Others Considering EO

• Prioritize Communication: Be transparent throughout the process, giving people time to understand and ask questions.

• Embrace Collaboration: Success depends on genuine power-sharing and information flow.

• Seek Support: Connect with the Employee Ownership Association and other EO businesses for guidance.

• Focus on Culture: Use EO to strengthen company values and align around shared goals.

• Be Patient: Allow time for new structures and mindsets to take root.

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