Alternative Exit #45 | Transformative Impact: Exploring Employee Ownership with Campbell Mcdonald

What does it really take to make employee ownership work? In this episode, I talk with Campbell McDonald, one of the UK’s leading experts on employee ownership and managing director of the Eternal Business Consultancy. With 14 years in the EO space—from his early days at the John Lewis Partnership to leading the landmark 2023 EO Knowledge Programme—Campbell brings unmatched insight into what truly drives successful EO businesses.

We break down what the data shows about EO’s transformative impact and uncover what really happens between the deal and a healthy ownership culture. Campbell shares the two essential questions every employee-owned company must answer, why education matters more than instructions, and how trust between boards and trustees shapes outcomes. We also touch on what employees value most and why setting honest expectations from day one is crucial.

Whether you’re a founder exploring EO or already past the transaction stage, Campbell offers a clear, practical roadmap for turning employee ownership into real, lasting impact.

Timestamps:

00:00 Introduction and Guest Overview
 01:30 Campbell's Journey into Employee Ownership
 05:45 The Power of John Lewis Partnership's Legacy
 09:20 The Transformative Impact of Employee Ownership
 14:15 The 2023 EO Knowledge Programme: Proof of Impact
 22:40 What Happens Inside the Black Box?
 28:50 The Two Critical Questions Every EO Business Must Answer
 35:10 Education vs. Instruction: Building Ownership Behaviors
 42:30 Setting Honest Expectations from Day One
 48:15 The Role of Independent Trustees in Building Trust
 55:20 Challenges and Opportunities Ahead for UK Employee Ownership

Key Takeaways:

⚫ Campbell’s Dublin “prove it” moment sparked his mission to gather hard data on EO impact.

⚫ The 2023 EO Knowledge Programme showed an 8–12% productivity boost and strong individual outcomes in EO businesses.

⚫ Leaders must answer two questions: What are your 2–3 ownership differences? What owner behaviors do you expect?

⚫ The “good company penalty”: strong pre-EO businesses must work harder to show clear ownership benefits.

⚫ Materiality surveys uncover surprising differences in what employees value across locations and roles.

About Campbell McDonald:

Campbell McDonald is the Managing Director of the Eternal Business Consultancy, Chief Executive of Ownership at Work, and an Executive Fellow at Rutgers University’s Institute for the Study of Employee Ownership. With 14 years in the EO movement, he has supported dozens of businesses through transitions and serves as an independent trustee for several employee-owned companies. He led the 2023 EO Knowledge Programme—the UK’s largest research study on the impact of employee ownership. Campbell previously consulted for the John Lewis Partnership and founded Baxendale Advisory, an EOT-owned management consultancy. He champions evidence-based approaches to unlocking the transformative power of EO.

Connect with Campbell McDonald:

Website: https://www.theeternalbusiness.com
LinkedIn: https://www.linkedin.com/in/campbell-mcdonald-628378
Ownership at Work: https://ownershipatwork.org 

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - andy@bettermonday.me