Digital consultancy dxw turns into employee-owned
The digital consulting company dxw, based in Leeds and London, has developed into an employee participation. Dave Mann, Managing Director at dxw, said the company’s executives see this as a “logical next step” in his development.
“[Employee-ownership] gives the people who work at dxw – our greatest asset – a real stake in the company, ”continues Mann. “At a time when SMEs operating in the public sector are facing increasing competition from larger and more established players, we believe that collective ownership gives us the best possible platform to grow and prosper for years to come . “
Employee participation is the fastest growing form of corporate ownership in the UK – with companies from various sectors joining famous examples like John Lewis in action or, more recently, UK home entertainment retailer Richer Sounds. In recent years, some consulting firms have also taken up the structure. For example, earlier this year, Birmingham-based change consultancy Curium Solutions announced plans to become a majority-owned company.
Now dxw is the latest consulting brand to adopt the innovative model. The company employs around 80 people in its Leeds and London offices and a network of specialized contractors. The company works with central government agencies, local authorities, housing associations, the healthcare sector and charities to create public services that make life better. A statement from the company said it believes employee participation will empower them in this work.
The decision to move to employee ownership was made by founder Harry Metcalfe and the directors of dxw as they considered how the agency’s values and culture could best be protected while continuing to grow. The move is made because more and more of dxw’s competitors are being bought up by larger companies or corporations. By maintaining its own independence, dxw hopes to provide an environment for people who are passionate about providing user-centric services to the public and third sectors and making profits with social value.
Regarding the transition to employee ownership, Metcalfe said, “We have a longstanding civil service ethos and establishing this ownership structure will allow dxw to maintain its independence and integrity. Transferring ownership into the hands of a diverse group of people with the right expertise and value-based commitment will support the company’s future growth and allow it to have more influence on the people and organizations we are helping here. The transfer of ownership in this way also recognizes the collaborative environment that dxw has created and the fact that our success is thanks to the team. “
Looking to the future, the Employee Foundation is led by a Board of Trustees chaired by Metcalfe. It will consist of two external trustees who bring in external expertise and challenges and two employee trustees who represent the views of the employees. The Trust will be required by its founding documents to hold the company accountable to its mission and values and to work in the interests of the users of the services it helps build. In order to guarantee continuity, the previous management team will remain and form the new dxw board.
