Whether it concerns its customers, employees, shareholders, our society or our planet, an organisation should deliver the maximum value to all its stakeholders.
In order to build and change organisations so that value wins out over money, we need to renew our economic foundations, including different rules of the game with different priorities without losing sight of business economics. This is where the Slingshot model helps.
Even before the company has any real value, co-founders have to decide how to split ownership of the company and the corresponding dividends. This often leads to long discussions and friction, which are things that a start-up company just doesn’t need.
A predetermined, rigid ownership structure also limits the ability to change things flexibly. Young companies are often on the brink of collapse, either because co-founders are shifting their priorities in life, or because the company has to take an unexpected turn.
Once a company is successful enough to reap the benefits, the profits generated are often distributed in an imbalanced way to the company’s shareholders. As a result, the company becomes imbalanced and opportunities are missed which should have involved all stakeholders in the organisation.
The business framework within which the board of directors must operate does not lend itself to promoting the interests of all stakeholders. Continuity, growth and profit often determine a company’s direction, while the interests of people and the planet do not receive the attention they deserve. The outspoken financial logic that a Board of Directors is forced to adopt also stands in the way of value maximisation.
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.
Slingshot was created thanks to a collaboration with Vlaanderen Circulair.
Just like Happonomy, Vlaanderen Circulair believes in a world where organisations can function circularly. Production without waste, business models that stimulate reuse and chain thinking are just a few of the principles of the circular economy.
If you want to know more about the circular economy, be sure to take a look at their website.