Defining Ownership, Possession, and Control

It's not just the founders who need to understand. Everyone in your organization should work together. Silicon Valley librarians tell you that you can solve this problem by limiting yourself to private entrepreneurs. Freud, Jung, and other psychologists have theories that each individual's mind is divided, but business, at least for himself, is a testament to adaptation. Unfortunately, this also limits the types of companies you can start. Going from 0 to 1 is very difficult
No group.
As long as you hire the right people, the Silicon Valley Anarchist can say you can find the right people, they will grow up peacefully without a leadership structure. Comfort at work, and even chaos in the free form, helps to "break" all the old laws that the rest of the world has created and followed. Indeed, "If people were angels, there would be no need for a government." But anarchist
The company missed out on what James Madison saw. People are not angels. As a result, the managing director and managing director of the company play different roles; That is why the rights of founders and investors in a company are regularly defined. You need good people who understand you well but you need a structure that will help everyone last longer.
To estimate potential sources of incompatibility in any company, it is important to identify three concepts.
• Who are the legal owners of the secured capital of the company?
Who runs the ownership of the company every day?
Control: Who officially manages the company?

Know the secret

A joint venture divides ownership between founders, employees and investors. The management and staff of the company are happy to own. And is usually overseen by a board of directors consisting of founders and investors.
Theoretically, this part works without problems. Partial ownership of financial benefits attracts and rewards investors and employees. Encourages and motivates effective property owners and employees, which means they can work. Board supervision transforms the plans of the Board of Directors into a broader perspective. In practice, it is reasonable to distribute this function among different people, however
Increases the chances of creating a wrong position.
Open DMV to see extreme extremes. Suppose you need a new SIM. Theoretically, one should come easily. DMV is a government institution and we live in a democratic republic. All authority in the government rests with the “people” whom they have chosen to serve. If you are a citizen, you are the co-owner of the DMV and your agent is in control so you have to go in and get what you want.
Of course this did not work. We humans can "own" DMV assets, but ownership is a normal thing. The secretary of the DMV operation and the small dictators have very little control over their small forces.
Even the governor and legislator who give name control to DMV cannot change anything. No matter what action the elected officials take, the bureaucracy is always beyond its comprehension. DMV, for which no one is responsible, is not suitable for everyone. Bureaucrats can voluntarily turn your licensing experience into a dream or a fantasy. You can try to come up with a political concept and try to remember that you are a supporter, but it does not seem to improve.
Service.

How do you find your destiny?

Larger corporations work better than DMVs, but there are still disagreements, especially between ownership and ownership. For example, the CEO of a large company, such as General Motors, owns a small portion of the company's shares, but only a small share of the company's total shares. Therefore, he is encouraged to evaluate himself by the power of ownership rather than the value of the property. Expressing strong quarterly results will suffice to maintain high wages and corporate jets.
Even if you receive a "common value" stock compensation, erroneous adjustments may occur. If this is a reward for short-term performance, you will find that it is more profitable and easier to reduce costs than to invest in plans that may cost more for all shareholders in the future.
Like giant corporations, startups are so small at first that their founders often own and own them. Initially, most conflicts occur between ownership and control, between founders and board investors. With different interests, the chances of a conflict increase are increasing.
Their organization and founders prefer to remain private and grow their business.
It was a little overcrowded in the meeting room. The smaller the board, the easier it will be for managers to communicate, reach consensus, and effectively control. However, this effectiveness can make small councils strongly opposed to the government in any conflict. Therefore, it is very important to make a wise choice: every board member is important. Even the problem manager is sick and
It could jeopardize the future of your business.
Suitable table for three. If your company is not public, your catalog may not exceed five. (Government regulations effectively require a large board for public companies, with an average of nine members.) The worst thing you can do is expand your catalog. Looking at a nonprofit organization with dozens of people, inexperienced observers say: “Look at the great people who are loyal to this organization! It should be handled very well. of course
A huge board of directors never has effective control. This includes only the small dictators who actually run the company. Blow on your board if you want this kind of loose control. If you want a working table, try to keep it small.
Source: Fleet Fleet from Scratch, Peter T.L.
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