If anything, any organisation should be there to maximise value for all people involved, whether they are its clients, co-workers, shareholders or the society at large.
Unfortunately, our current legal framework is not equipped to achieve this. It’s hard to grow a new venture or redistribute profits of a business more equitably and flexibly. This is where the Slingshot can help.
In a start-up phase, well-intended co-founders are too often stacked up against each other from day one; before the company has any true value, co-founders need to determine how they are going to split the ownership and the corresponding dividends. This often leads to long discussions and friction, which are definitely things a starting venture can do without.
Ventures often fail because, while venturing, co-founders shift priorities in life, or the business needs to take an unexpected turn, and there are things which cannot be managed with the previous ownership structure.
Once a venture is successful enough to reap its fruits, the generated profits are mainly distributed to the company shareholders, even though other stakeholders such as society, clients and co-workers could and should benefit.
Too often, the role of a company board is to ensure that shareholders maximise profits. A company board does not formally represent all stakeholders of the organisation, while an organisation would prosper – both financially and in true value – if it would do just that.
Whether you are building a new or an existing organisation, the statutes are the backbone of your organisation. That’s why there are three statutory clauses which you can install in your organisation to put value maximisation at centre stage.
Anchor your mission concretely in your statutes.
Install a body that safeguards your organisation’s mission.
Distribute your profits amongst all the stakeholders of your organisation.
The management or ‘governance’ of your organisation determines the extent to which you put the principles of value maximisation into practice on a daily basis. That is why we are currently developing an overview of management principles that you can implement step-by-step to put value at centre stage. If you want to be kept informed about its progress, simply subscribe to our newsletter.
The final piece of Slingshot is the value register. Together with the accompanying partner agreement, the Happonomy value register offers the possibility of building and transforming organisations in a flexible and fair way. Because this final piece clashes with the edges of our current legal framework, we are exploring the contours of what is legally feasible today, thanks to Vlaanderen Circulair. Stay informed by subscribing to our newsletter.
Whether you’re considering starting up a business or you’re already well on your way, you don’t have to do it on your own. Happonomy has a network of value-driven legal and HR specialists who can assist you with the implementation of the Slingshot model, both on a management and legal level.