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