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Sir Bernard Miller

Torch-bearer for industrial democracy

Friday 28 February 2003 01:00 GMT
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Oswald Bernard Miller, retailer: born London 25 March 1904; director, John Lewis Partnership 1935-55, chairman 1955-72; Kt 1967; Honorary Fellow, Jesus College, Oxford 1968-2003; Treasurer, Southampton University 1974-82, Chairman of the Council 1982-87, Pro-Chancellor 1983-90; married 1931 Jessica ffoulkes (died 1985; three sons); died Sutton Scotney, Hampshire 23 February 2003.

Bernard Miller had the unenviable task of succeeding the brilliant maverick businessman John Spedan Lewis at the helm of the co-owned John Lewis Partnership. But as a torch-bearer for the ideals of industrial democracy, there was no one better suited to the role.

While studying Modern History at Jesus College, Oxford in the early 1920s, Miller had been fascinated by the 19th-century industrial experiment of the social reformer Robert Owen. After graduating, he met the charismatic Spedan Lewis, who was running two London department stores, the original draper's shop set up by his father, John Lewis, in Oxford Street in 1864, and Peter Jones in Chelsea. Spedan Lewis's vision for an employee-owned business struck a chord with Miller.

He was bowled over by the young Lewis's explosive energy and conviction, and saw a chance to play a part in his "great idea". He found himself in tune with the notion that the happiness of the workers was more important than maximum return on capital. He joined the embryonic partnership in 1927.

Miller quickly became one of the inner circle of gifted individuals who worked with Lewis to cement his ideas for employee ownership and translate them into a legal constitution for the partnership. The so-called First Trust Settlement, under which Lewis transferred his shares to trustees for the benefit of the employees, was signed in 1929.

Miller brought tremendous organisational skill and practical leadership to Lewis's vision – he was a highly effective administrator who had the ability to convert theories into commercial and democratic reality. Throughout the 1930s the John Lewis Partnership was developing from a small personal business constricted by the personality of its creator into a retailing force and a new form of industrial society – Miller was at the heart of the transformation.

During the years of the Second World War, he played a pivotal role in holding the business together. Many of the partnership's senior managers had been called up, trade was extremely difficult, and John Lewis in Oxford Street suffered heavy bomb damage. After the war, Lewis devoted his energies to refining the partnership's constitution, and Miller effectively ran the day-to-day affairs of the business. In 1950, the year in which Lewis transferred his remaining shares to the trustees under the irrevocable Second Trust Settlement, he announced that Bernard Miller would succeed him as chairman in 1955.

The challenges were immense. Galloping inflation had preceded the Korean War, and the partnership had to reduce prices heavily afterwards to get rid of stock. In the aftermath there was no bonus to share out among the employees, and managers endured pay cuts in 1952. To compound the difficulties facing Miller, Lewis found it almost impossible to let go of his creation when he retired, and subjected his successor to constant criticism – much of it public.

However, Miller was patient and stoic, and forged ahead with the development of the business. In the first year of his chairmanship, the rebuilding of the bombed John Lewis in Oxford Street began, and the first purpose-built Waitrose supermarket opened in Streatham in south London. Bonus payments were reinstated, and would average 13.5 per cent of partners' annual salary for the rest of his term of office.

John Spedan Lewis died in 1963, leaving Miller – a man of quiet conviction – determined to make this unique co-owned company work without its founding father. He began extending the partnership principle, encouraging more accountability between managers and those they managed. He announced that he would give a "state-of-the-nation" report to the partnership's Central Council every year, and would answer questions. Miller felt it was salutary that the chairman was willing to put his head on the block and justify his decisions. In time, all principal directors would give an annual report and submit to a grilling from the council, a requirement that continues.

His 17 years as chairman were a vital period of consolidation. He preserved the originality of John Spedan Lewis's visionary approach to sharing the rights and responsibilities of ownership, while setting in place the framework of sound financial and trading disciplines that have given the John Lewis Partnership enduring capability. During his chairmanship, turnover grew from £28m to £140m; it now stands at more than £4bn, and the partnership owns 26 department stores and 140 Waitrose supermarkets.

Miller held a host of external appointments, both during and after his John Lewis career. These included membership of the Monopolies Commission, the National Economic Development Committee, and the governing body of the London Graduate School of Business Studies.

His artistic interests were widespread. He was a trustee of the Glyndebourne Arts Trust and of the Youth and Music Trust. He was also chairman of the Glyndebourne Festival Society and a council member of the English Stage School.

In 1967 he was awarded a knighthood for his public services, and the following year was made an honorary fellow of Jesus College, his Alma Mater. Following his retirement from the partnership in 1972, he became closely involved with Southampton University, serving as treasurer, chairman of its council and Pro-Chancellor.

Marion Scott

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