Case Study: Blue Flame

Excellence and Innovation

For over thirty-five years, Blue Flame has installed, maintained, and repaired heating and electrical systems from its Penryn headquarters, one of the oldest towns in Cornwall.

With a strong reputation for quality workmanship, exceptional customer service, and a deep commitment to apprenticeship and development programmes, Blue Flame has long been at the heart of the community it serves.

Operating across both domestic and commercial sectors, Blue Flame offers 24/7 emergency support, a dedicated customer care centre, a renewable energy division, a parts delivery service, and a commercial team. The business has routinely embraced innovation, staying ahead of new technologies to provide the best solutions for its customers.

But, at its core, Blue Flame’s success has been built on a culture of care and respect – for its employees, customers, and local community. In 2024, the business moved to employee ownership, preserving that culture and its commitment to its local community for the long-term.

Why Employee Ownership?

As the Founding Directors – Mark Bolitho and Paul Smith – they wanted to secure the future of Blue Flame in a way that aligned with its principal values. Rather than opting for a management buyout or a commercial sale, transitioning to EO ensured long-term stability while preserving and enhancing the company’s strong culture.

The decision to transition to an employee ownership trust (EOT) was driven by several key factors:

1. Empowering employees

The team has always been critical to the company’s success, and EO ensures they share in its rewards.

2. Fostering innovation and growth

As the company looks to expand and focus on sustainability, EO engages employees in this journey, leveraging their experience and expertise.

3. Strengthening resilience

In a competitive industry, efficiency and productivity are crucial. A culture of ownership supports this by enhancing employee engagement and accountability.

4. Prioritising wellbeing

Employee happiness and wellbeing have always been a priority, and EO formalises a structure for employee voice and participation.

An Award-Winning Transition

Blue Flame began its transition by learning as much about employee ownership as it could, accessing the resources, events, and connections provided by the eoa and gaining insight from established EO business, Devon’s Riverford Organic Farmers.

Recognising the importance of a structured transition, Blue Flame also worked with Christian Wilson (who currently serves as the business’ Independent Trustee) and eoa member Happy Business to define a clear vision and strategy. The process involved aligning the ambitions of the founders and leadership team, identifying development needs, and setting clear objectives.

Strategic leadership changes were made to ensure stability, including appointing a Managing Director and Director of Operations from within the team and expanding the HR Manager’s role to People and Culture Manager. These steps empowered the management team to lead effectively under the new ownership model.

The business also placed a strong emphasis on communication and engagement before making the transition official. 

The planning and dedication paved the way for a smooth, successful, and award-winning transition. The business won the highly competitive ‘EO Transition of the Year’ award at the 2024 UK Employee Ownership Awards.

Evolving Employee Voice and Engagement

The company has taken a measured approach to embedding employee ownership. Two Employee Trustees were appointed to the board after an application and interview process led by the founders. These trustees received training and development support to help them succeed in their roles.

Blue Flame is also currently working on an Employee Council and surrounding initiatives, with plans in place to launch later this year.

The council will serve as a formal feedback mechanism, supporting initiatives around wellbeing, staff engagement, and community involvement. One of its first proposed initiatives is a wellbeing committee.

Blue Flame promotes transparency and engagement through an annual Happiness and Engagement Survey, a quarterly ‘Team Talk’ newsletter, regular team briefings, and team-building activities like BBQs and charity events. The company also supports the community through volunteering, food bank drives, and event sponsorships.

The Impact of Employee Ownership

The transition to EO has already delivered tangible benefits, from enhanced communication and transparency between employees and leadership and an increased sense of ownership, to making improvements in workplace morale. The business has also boosted its headcount by 7% thanks to stronger recruitment and onboarding processes.

Blue Flame’s goal was to create an environment where employees feel valued, motivated, and invested in the company’s success. The results indicate that this shift in mindset is leading to increased efficiency, productivity, and a renewed sense of unity.

Reflections from Employee Owners

Employee ownership has been embraced positively across the business, with team members expressing a strong sense of responsibility and motivation:

“Becoming employee-owned has been an incredible opportunity. The founders were so considerate of our futures, now we all share the responsibility of building on what they started.”

“There’s a real sense of security knowing we’re all in it together, and it’s motivating to work in an environment where everyone is striving for the same success.”

“We’re fortunate to work in a place where the founders saw potential in us and entrusted us with their legacy. Now, as employee-owners, we all share in the responsibility and the rewards.”

Read the full version of this case study in the eo Hub.