Ward Lumber’s transition, one year later

March 17 marked the one year anniversary of Ward Lumber’s dramatic step to become an employee-owned co-op.

A little background: The employees of Ward Lumber made history last year by purchasing the 130-year-old business as a worker-owned cooperative. The transaction marks the first employee ownership transition of its kind in the North Country region of New York State.

The lumber, building products, and hardware store, which has locations in Jay and Malone, N.Y. and employs over 50 people, has been in Jay Ward’s family for four generations. Jay Ward remained onboard as CEO, which is just how the employee owners wanted it.

A year later, so far so good.

“There was skepticism,” Jay Ward told HBSDealer. “’Is this really going to happen?,’ and ‘is this really going to work?’”

The answer to both questions is “yes,” Ward told HBSDealer. But the transition has required adjustments, learning and effort.

The biggest difference perhaps is simply the process by which many decisions are made. “I knew that the move from an owner-entrepreneur to a CEO reporting to a board would be a big change,” Ward said.

Policy decisions – on expanded vacation, for instance — that used to be made by a quick owner’s decision are now brought up to the board, made of employees. Many lead to the same results, some do not. “I’ve learned to accept those board decisions,” Ward said.

Meanwhile, the benefits of employee ownership in terms of the team taking an ownership stake in the business, continue to work as planned.

One recent example came from a truck driver, who recognized a business opportunity while making a delivery. The driver called the CEO to get the ball rolling towards the new business, (in which the driver has a vested interest.)

“There are a lot of examples like that,”  Ward said. “Many of them are small, but they all add up.”

Ward also continues to play a role as advocate for the concept of an employee-owned co-op structure as a lower-cost, higher-simplicity alternative to an ESOP or another succession-planning strategy. He’s talked to businesses all over the country.

After Ward visited a New England business and explained the employee-owned co-op structure, the workers at the company subsequently and overwhelmingly told the owner of the business that they wanted to explore the option further.”

“Maybe it will happen, maybe it won’t,” Ward said. “But that was an exciting response.”

Ward says he’s still enthusiastic about spreading the word about Ward’s ownership story and its ownership transition. At the root of the enthusiasm is a simple desire to give back.

“My career has been in small business,” he said, “and I know how challenging it can be.”