CurEOsity: How Has Going EO Helped Not Actual Size

As the most aligned way for the agency’s founder to exit the business, whilst preserving company values and culture, Not Actual Size become an employee-owned trust (EOT) in December 2020. Managing director, Siobhan Johnson, talks about coupling being an EOT with B Corp status, how EOTs keep evolving and the importance of balancing ownership and responsibility.

Q> When and why did your company become employee-owned in the first place, and how did you make the decision?

Siobhan> Not Actual Size became an employee-owned trust (EOT) in December 2020. Our founder Dan Holliday wanted to exit the business and, after months of deliberation, we decided that an EOT made the most sense for us. Having looked at options from selling to management buyout, we felt becoming an EOT was the most aligned option to our company values. We really wanted to protect our culture and felt this wouldn't be possible in other options.

Q> Has it changed your company culture and operations as a whole and if so, how?

Siobhan> Being an EOT hasn't changed the culture – namely because it was designed to protect and strengthen it. I would say that it has done that and that it has provided a really useful lens in key decision-making across operations and business planning.

Q> Has it been positive for company recruitment?

Siobhan> It's definitely been positive, but we've also certified as a B Corp in the same time frame and both together are attractive when in recruitment discussions. I’d say that when I’m talking about our EO status in an interview, it really validates what we’re saying about our culture – it shows people you’re actually serious about being a good, caring company vs. just telling them you are.

Q> As an EO company, how can employees contribute their ideas, participate in strategic planning, and have a say in company direction?

Siobhan> We're constantly reviewing and evolving this, when we became an EOT we agreed to a gradual shift to company decision making whilst we are 'buying' the business from the founder. So we've gradually introduced and tested new ways to engage employees. We have in place regular employee engagement surveys, open forum company meetings etc. We're working to a phased evolution whereby we gradually increase employee engagement from improved visibility to improved voice and are introducing new things all the time – we’ve just introduced anonymous feedback forms as we found it helps some team members to feel more confident in sharing questions. We can always do better, but I think our open approach means that we are evolving and transparent with our team on this evolution.

Q> How do you encourage employees to think and act like owners, beyond just financial ownership, and is this a focus for you?

Siobhan> This is something we're working on – I would say that with a growing and relatively young agency it is a tough concept to grasp. We're constantly evolving and taking on feedback, but we're also aware that some employees really don't want that 'ownership' responsibility, so we're working to understand the balance and create something that works for the majority. In a growing agency, it’s also a challenge to keep on top of who knows what, you might think you communicated something well and then realise it was 6 months ago and you’ve had 5 new people in that time. Communication is the key, and this is an area we’re focusing on at the moment – making sure we’re keeping the team in the loop and being clear and consistent in our communications.

Q> Are there any challenges to being EO? How do you deal with these?

Siobhan> The biggest challenge is understanding what it actually means and tangibly demonstrating this. Everyone has a different perspective, and we need to make sure we understand and manage this – without losing sight of doing great work being at the heart of our company culture. As I’ve already mentioned, communication feels like a key part of success, we're almost 50 people now so bringing everyone on the journey is really important to our collective success.

Q> What support and resources does your company provide to help employees understand and navigate their roles as owners effectively?

Siobhan> Over the past few years we've held various company meetings and presentations, we're in the process of doing values workshops with the full team and updating our company handbook. For us, the company values and the shared ownership are intrinsic – and this understanding needs to be nurtured over time. It's not an overnight process, nor does it need to be.

Q> What would you say to other businesses considering going employee owned?

Siobhan> I'd say that at the heart of any business – not least an employee owned one – is people. And people are interesting, unique, and surprising. There's no one way to set it up and there's no one perspective, there's no right or wrong. It's tempting to think of being an EOT in simple forms, but it is a constant evolution and needs constant work, consideration and nuance in the thinking. I think employee-owned businesses are the future, but they're also doing something different – which means there isn't a paved path to follow. Exciting but also leads to some unknowns along the way!

With thanks to Siobhan Johnson, managing director, Not Actual Size