The strategic review, Vision 2020, is based on three cornerstones of ‘building trust and integrity in markets; unlocking sustainable growth for dynamic businesses; and creating environments in which business and people flourish’.

This follows the launch of the mid-tier firm’s shared enterprise model, which has been running since July 2015, and is designed to share reward across the organisation.

The three-year reward programme is designed to engage staff across the firm and create a more collaborative environment, where all level of employees up to and including partners, shape the future of the business and are able to contribute to innovation, business practice and growth.

This is a long-term incentive programme and works on a three-year cycle, across the entire workforce. In addition, the firm continues to manage salary reviews, performance bonuses and partner profitability outside the reward programme.

Sacha Romanovitch, CEO of Grant Thornton UK, said: ‘Shared enterprise is about a mindset shift in how the organisation operates.

‘It is a shifting model of leadership from alpha control and tell – it is not about just telling people what to do.

‘There are three different aspects to shared enterprise,’ said Romanovich. ‘It is about how do we liberate people - people want to have meaning and purpose in their work; and about sharing responsibility and sharing the rewards.’

The shared enterprise model is fundamental to the philosophy and growth strategy at the firm, and is based on a reward programme funded by superior profit outside of pay rises, annual performance bonuses and partner profitability.

Simon Jones, partner and member of the strategic leadership team at Grant Thornton, said: ‘Fundamental to our view is that we don’t have all the ideas. We want to get all of our people involved and will share the rewards in our business on a wider model. Sharing rewards is key.

‘When we set out the principles of shared enterprise we had a long-term element and we did some modelling. In the end, it comes down to a potential monetary pot, a flexible benefit pot, drawn out of superior profits.

‘Individual performance will still be rewarded, but this is different. One of the key principles was having a long-term arrangement. We debated three and five year, but decided that five years was too long.

‘We are now into the first [three-year] cycle and we are still developing some of the detail. Shared enterprise kicked off in July 2015 and we wanted it to have a long-term nature so there will be no payouts in the first three years.’

Tax implications

Unlike shared ownership models where there is a tax incentive, for example through the use of enterprise management incentive (EMI) schemes, by contrast shared ownership models, particularly within a partnership enviroment, do not offer comparable tax advantages.

Jones said: ‘We are talking to the Revenue about whether there is a way for people who have set up a partnership to pay tax in advance of anyone getting the [reward] funds.’

'The key tax point is that unlike share option models, there are no Revenue incentive schemes, such as EMIs, which partnerships can use. If the government wants to encourage employees to get involved in a shared business model, we would like to explore how partnerships could get more closely involved too.'

Current regulatory requirements determine the composition of audit firms with strict rules on numbers of partners, which creaties a structural challenge for partnerships who are looking to evolve their organisations and develop the current partnership model beyond a very fixed definition.

Unanimous vote

The model of shared enterprise was approved by a huge majority of partners and staff at the firm, but Jones accepts that communication and education about the new approach is vital to its success.

‘The principle is easy; 99% of our people voted in favour of this. But it is about changing the culture and this takes longer, it is like any change transformation programme.

‘To make this work, all 5,000 people need to drive this business to a different place. This is about driving the business, taking it in a different direction and by delivering superior profits, being able to reward everyone.’

Since the launch in July 2015, engagement levels have been high. Romanovich said: ‘Across our 27 locations, this has really been reflected in the business planning. We are giving people much more information.’

The five-year vision will also see a more energised approach to working with clients, attracting new business and developing innovative services to meet the needs of an increasingly high tech, connected and risk-based business environment.

 ‘We want to change the conversation with the market and our customers so that there is a much more valued focus,’ added Sacha.

‘When we set out on this journey, we did so knowing that we needed our business to be able to adapt quickly to change and explore new areas of opportunity. We knew we wanted to build an innovative culture that creates value for our clients, our people and wider society.

‘The principle behind our approach is that we will only deliver Vision 2020 if all our people are actively involved in creating it and making it happen.’