WHEN the founding partners of Glasgow architecture practice Page \ Park decided to sell the business they founded in 1981, they could have cashed-in, possibly sold to a large international firm and certainly made a lot of money.

Instead, in 2013 David Page and Brian Park set up an employee benefit trust (EBT) as part of a long-term succession plan. After transferring ownership of the company to its staff, the founders receive a settlement from annual profits over a five year period.

This week, that succession takes a major step forwards with Karen Pickering replacing Mr Park as chair, and Andy Bateman assuming the newly created managing director position.

“The change to employee ownership aligned the legal structure with how we were already working,” says Ms Pickering. “Everyone has a voice, everyone is listened to across all aspects of the business.”

Three years ago, when the legal structure changed, the business was turning over around £2.5 million. Today it tops £4m. Businesses such as John Lewis and Arup are cited as “exemplary” models for Page \ Park.

In fact, more businesses than ever are following the employee owned business (EOB), route. Since 2009 the number of EBOs in Scotland has doubled.

And yesterday, as they celebrated employee ownership day on July 1, Co-operative Development Scotland and Scottish Enterprise have been promoting the benefits of such a structure. Ms Pickering said both were hugely helpful in terms of providing advice and guidance to Page \ Park.

Over a five-year period, EOBs have achieved 60 per cent more employment growth and 64 per cent more sales growth. And since 2003, the employee ownership index (EOI) has outperformed the FTSE all-share by around 14 per cent per year.

Ms Pickering described the new structure as win-win for partners and the firm’s 50 employees, who receive an annual bonus – last year that equated to at least two weeks’ salary.

“The partners eventually want to retire and want an exit,” she said. “The business has a value and they will get that value but we as employees we all get a bonus. They wanted Page \ Park to continue in perpetuity.”

For staff, there is the security of knowing everything that is happening at the company, contract wins, tenders, financials – even salaries are openly shared, something Ms Pickering calls the “ultimate expression of transparency”.

As part of its ownership structure, the company has a business model which is made up of ‘centres of gravity’ (CoG). There are a number of operational, design and support CoGs and each member of staff must be a member of at least one cog in each of these areas. This helps establish a collaborative culture, with all groups reporting back to the main board.

“The practice has always been very inclusive, very receptive to ideas and input across all levels,” says Mr Bateman.

He adds that when the business moved to new premises near Glasgow Green eight years ago, it instigated a process of self-examination to understand how it worked and what it did.

“That helped us structure what we did intuitively into a more organised model of empowering people at all levels,” he says.

Having come through the recession with enough bruises to promote caution, the practice is content to grow organically, and use profits to create a buffer, to ensure that the practice is not reliant on banks, should another financial storm whip up.

“We are great risk takers in our architecture, but not in our business practices,” says Ms Pickering.

Of course there are challenges that go with such processes. Ms Pickering cites a lag in how long it takes for plans to progress due to the level of discussion involved.

Mr Bateman agrees: “It does challenge efficiency. Previously, partners would decide something and go with it, but there is now, in a healthy way, a lot of discussion,” he says. “There is a hierarchy, but it’s within this inclusive, listening culture that responds to the voice of everyone.”

Ms Pickering says Page \ Park is, by its culture, collaborative. While many practices are driven by the design ethos of one or two leading architects, David Page has an inclusive philosophy in the development of architectural ideas, she says.

Mr Bateman adds that there is an emphasis on the practice’s culture in relation to how it works and what it produces in terms of its architecture.

“As we evolve we establish an understanding of our culture, why we have it, how it impacts what we do, and how to retain it for the long-term future,” he says.

Ms Pickering adds: “Our architecture reflects that culture. We don’t have a set style. We’re commercially driven, but not in the architectural sense. We chose the buildings we want to work on because they suit our culture. We’re not in it for the money, we’re in it for the creativity, for the satisfaction of our employees and we want to enjoy working.”

As the practice passes the three-year mark of employee ownership, the succession plan has entered its second stage. With Ms Pickering and Mr Bateman’s promotions, David Page continues in his role as head of architecture while Brian Park is stepping down as chair, but retaining his seat on the board.

“It was part of our guidelines,” says Ms Pickering. “Brian said he’d be chair for three years to set us on our journey. He’s still on the board, but wanted to progress the succession plan.”

The company is now forging ahead, with plans to win more work in England, and potentially even open an office there.

“We know the business has to evolve, to constantly innovate,” says Ms Pickering. “The partners have made us one of the strongest practices in Scotland and we want to be a strong practice in the UK.”