ABSTRACT The importance of employee-owned (EO) organizations around the world is increasing. Countries, communities and organizations are realizing that passing profits to workers increases wealth at all levels of society. The benefits, widely known, include personal prosperity, organizational profitability and stability, and a host of economic benefits for communities in which EO companies operate. Selling a company to employees, or starting a cooperative organization containing worker owners, is not without risk. New skills are required for the company to reap the rewards inherent in EO organizations, but the method of creating this change varies significantly from one organization to another. Each is unique, but there are some factors that are common to most EO organizations that have achieved a dynamic organizational culture. These factors, which are critical for success, can be isolated using structured research, organized through a lens of general systems theory and operationalized using principles of Learning Management (LM). The result is an organized knowledge transfer plan that maximizes resources and provides the highest probability of a successful transition to a uniquely profitable EO company.
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