Founded by Maurice Blackmore in Brisbane, Australia over 80 years ago, Blackmores has grown to become a global leader in the vitamin trade. In 2014–15, profits increased by 83 per cent on the previous year. This momentum was reflected in the company’s performance on the Australian Stock Exchange, jumping from a share price of $27 in August 2014 to over $200 by the end of 2015, earning it a position on S&P/ASX 200 index — a list of Australia’s top 200 companies.

As part of its long‐standing profit share scheme, 10 per cent of Blackmores’ $46 million profit was distributed to its 900‐strong staff — equating to approximately 6 weeks’ additional pay for each team member. Blackmores chief executive, Christine Holgate, says the bonus scheme is a great motivator for staff. ‘It really aligns everyone, from the lady on the factory floor to the chief executive’, she said.

Additionally, the family‐oriented company encourages its staff to purchase shares in the business. 10 of the top 30 shareholders in Blackmores are either employees or former employees. Blackmores staff aren’t merely rewarded with monetary benefits — the offices in Australia, New Zealand, Asia and the United Kingdom have wellbeing centres, subsidised cafes and family‐friendly environments.

The company is taking advantage of societal trends that see people increasingly focused on their health and wellbeing. This, combined with a rising demand for safe vitamin products in China, will ensure that the Blackmores stock continues to rise — and they are bringing their staff along for the ride.

QUESTION

Can you discern the relevance of Mary Parker Follett’s ideas in Blackmores’ management approach?