Feed for thought

Galloway & MacLeod has been around since 1872, and Ralph was the third generation of the family to own the business. When the time came to think about handing over, he wasn't entirely clear on the options open to him, but he did have strong views on what he didn’t want to do.

Donald Harvey, MD of Galloway & MacLeod

Agriculture is a fiercely competitive business, dominated by large players. For example, there are now only two main players in grass seed supply worldwide. None of us wanted to see Galloway & MacLeod swallowed up by a large conglomerate. 

"We pride ourselves in the strength of relationships we have with our customers"

If Ralph had chosen to sell to a trade buyer, the danger was that the business would have become product driven rather than customer driven. 

To me, the move to employee ownership allowed us to maintain our independence and preserve our customer-centered focused approach, without a noose round our neck and an overdraft which would have had a big impact on the business.

There have been other benefits in the move to employee ownership. We now have 34 owners who all have a stake in the prosperity of this business. This means that most of the people come into work thinking like owners. They want the business to do well, and they know that they will share in the rewards of that success. We don’t have issues with absence or staff turnover; people enjoy being here. We are able to attract the highest calibre of recruit, and will always promote from within.

Alongside these benefits are challenges, particularly for the management team.

How do we make sure these owners understand how the company works and where our revenues and costs are? How can we ensure everyone has the information to enable them to make the best contribution possible?

We had to take a very close look at how we communicated with our people, and how we make complex information accessible. We had to ensure our management team had the skills and support to do their job well. We don’t always get it right but we are quick to acknowledge and address our mistakes.

"As these owners are the employees, they see and understand the process."

As Managing Director, I’m accountable to the 34 owners of this business. As these owners are the employees, they see and understand the process - from prospecting to order fulfilment - and the relationship we have with our stakeholders.

As our management team is running a business in an accelerated growth plan with high expectations, we meet challenges which can be hard to overcome. Every day’s a school day!

Ralph MacLeod was the third generation to run the business

"I’m leading a team of people who have a stake in the future of this business"

The flip side is that I’m leading a team of people who have a stake in the future of this business. It’s in their interests to do as good a job as they can to ensure the company prospers. I’ve first hand experience of the evidence demonstrated in the research: employee ownership is the most effective route to true employee engagement

And it all seems to be going in the right direction. Sales are up 39% since 2010. We keep our customers and have won several new ones. Our employee satisfaction levels are extremely high.

As for Ralph, I’m delighted to say he’s still there for when we need him. He knows this business and its people inside out. It’s good to see him have the time to spend on his other passions of sailing and hill walking. Ralph MacLeod did a great thing for the employees of Galloway & MacLeod. The current owners know we have a lot to live up to, and we are all working to ensure we continue the legacy and deliver a prosperous future for our business.

Want to know more?

Galloway & McLeod hosted a free employee ownership presentation at their premises in Stonehouse, South Lanarkshire on 30 April.

Find out more about employee ownership