UK PLC or UK LLP?

I was once given a sage piece of advice, by one of my more senior partners, that it would be wise to steer clear of any high profile connection with politics, as it could rebound on me and also the firm.  I have tried to stick to this advice, but have also maintained a keen interest in the political scene, as it is so closely tied in with the economics of the country, as well as the tax system.  Whilst not wishing to become embroiled in any particular political debate, it occurs to me that the way the new coalition government is having to conduct its business is more akin to that of a large partnership, rather than the usual model which more closely resembles that of a large limited company or PLC.  This is not necessarily a bad thing.  Let me explain.

In a partnership, there has to be a great deal of trust between the partners, as well as a lot of collaborative working.  There also has to be, dare I say, areas of compromise which will not suit everyone.  A partnership can however be a very powerful and successful business model for getting things done, as a lot of professional partnership will happily testify.  The larger partnerships have a common focus and goal throughout the firm, but the major difference is that the partners are also the “shareholders”, and therefore have a vested interest in the partnership being successful.

A limited company usually has a top-down structure, and the Directors have the power to push things through within their sphere of responsibility to meet the company’s objectives.  This can work very well, particularly in the short-term, with a view to increasing shareholder value.  This is the way in which it seems to me that Governments have been run in the recent past, particularly in relation to short-term results at the expense of longer term thinking.

By having to work in a more collaborative way with their coalition colleagues, and maybe even being able to bring New Labour into the fold on bigger, longer-term issues such as state pension provision or care provision, we may be seeing the (enforced) beginnings of a new, less partisan style of politics, taking the best ideas, not just the ones with the most ideological content, and putting them into practice for the good of the nation.  Time will tell!