Key Factors of Success at MONDRAGON Corporation: Insights and Best Practices
The MONDRAGON Corporation, a leading economic group in the Basque Country, showcases key factors of success including the role of Caja Laboral, worker commitment, quality-based strategies, and reinvestment of profits. These elements contribute to sustainable growth and cooperative success within the organization. By prioritizing workers' ownership, profit-sharing schemes, and innovative strategies, MONDRAGON has established itself as a prominent player in the cooperative industry, reinforcing principles of solidarity and community engagement.
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MONDRAGON Corporation Key factors of success/ Some Best Practices
MCC:Key Factors of Success .3 facts to highlight .Key factors of success
3 facts to underline 1st. economic group in the Basque Country The role of Caja Laboral Since 1985 very few new industrial coops.
1st. economic group in the Basque Country A 31.12.2013 .EQUITY: 34.011 M. .PEOPLE EMPLOYED: 74.060 .257 COMPANIES (BUT ONLY 103 COOPS.
The role of Caja Laboral As a banker (the main banker for years) As a supplier of solidarity funds (30% of profits.More than 400M. in 15 years)
MCC:Key Factors of Success 1.-3 facts to highlight 2.-Key factors of success
2.-Key factors of success 2.1.-At each coop.level 2.2.-At Corporative level
2.1-Key factors of success (at coop. level) 1.-Workers commitment 2.-Quality based strategy 3.-Profits reinvested 4.-Advantages in taxes
1.-Workers commitment:Our main competitive advantage Economic reasons: ..Workers Ownership: (16.000 invested each) ..Profit sharing scheme: (Pension Fund) Managerial reasons: ..Open information policy(High transparency) ..Narrow range of salaries (1 to 6) Cultural values: ..All people equal:Elect Board of Directors. ..Shared project needs prevail over individual interests (Common Good first) ..Teamwork and Commitment to community
2.-Quality based strategy The best option from Harvard point of view The most suitable strategy to take advantage of workers commitment.
3.-Profits reinvested Profits shared increases the stock of worker members But can t be taken until they retire Only an interest of 7% over it and 10% of profits for legally compulsory Fund of Education go out of the coops.
4.-Advantages in taxes Much more important in the first years Now well used to promote Reseach Centers, Coop.University, help community NPOs,
2.-Key factors of success 2.1.-At each coop.level 2.2.-At Corporative level
2.2.-Key factors of success (at Corporative level) 1.-Solidarity Funds and reallocation of members 2.-Corporate Management model 3.-Interchange of Best Practices 4.-Support to coop. s Management teams 5.-Lobby Public Administrations
1.-Solidarity Funds and reallocation of members Each coop.:10-30% of profits To help: .Coops. in dificult situations .Investments abroad .Set up of Research Centers .Cover Corporate Headquarters cost .Coop. University
2.-Corporate Management model Inspired in EFQM
3.-Interchange of Best Practices Culture of open informacion between coops.
4.-Support to coop.s Management teams Coop. Training Centre Coaching of CEOs Reallocation of burnt managers
