Leadership Accountability in Co -ownership

I was interested in Jim Naughtie's reaction this morning on the Today programme as he questioned George Osborne on the proposal for "co-operative schools".   Naughtie appeared quite incredulous that the teachers might have the power to fire the head teacher.  Wouldn't this lead to anarchy?

The evidence from the employee ownership world, where often the leaders are accountable to the employee owners of the company, is that this does not lead to chaos at all. In fact, the result is often enhanced managerial performance and increased transparency in communication.  When Chief Executives and senior managers know that their decisions and actions might be challenged by the people within the organisation, this generally leads to more consultation and involvement and therefore sounder decisions.  And as many leaders of co owned businesses will tell you, employee owners demonstrate more interest in longer term plans for success than external shareholders, often focused on short term financial returns, might do.  Of course, for Chief Executives facing their employee shareholders at an AGM, it's a nervous time.  The truth is that it is very rare for employees to vote a leader out.  It's a myth that all employees want is an easier life;  employees with a stake in the success of their enterprise want to be led by someone who delivers that success.

There is one example where the employees did not vote out the Managing Director, but did express a lack of confidence in management style and quality of leadership.  The Managing Director decided to resign.  Since then, the company has returned to profit, is achieving much better results in industry audits, and has a happier workforce.

The people inside the organisation are well placed to hold their leaders to account.  They are close to the service users and customers, they can assess effectiveness, and they have an interest in long term success.  Accountability isn't something we should be afraid of.