My search for participation and a self-steering organizational structure

Today, prof. Jan De Visch has given me the opportunity to tell my own story. My 50 years of searching. Searching for the right company structure to make people love their work. It has not been an easy search. Today, it seems bon ton to dislike Taylor and classic company hierarchies, but that was not the case when I started my business experience.

Over the years, I have been working on many of the levels of maturity that are described by Frederic Laloux in his book “reinventing organizations”. Red — the maturity level of the medieval lord who is the dominant boss of a group of power seekers — is great when you need a high quality and a high control over a very small team. Great for fast start-up, yet weak for scaling-up. That’s when the “amber” level can be much more successful. In amber, everyone has a rank because he or she got to that rank. Great for creating large churches and armies, but not great for output-driven organizations. We tried some of that by allocating people to a rank, but soon we discovered there were more ranks than people. Orange works better for knowledge workers, since that level rewards people for their merits. This is thé level for Industry 3.0 companies in which bosses design the organization and have workers do the job that was designed for them. Not a great system for knowledge work, though. The boss cannot be everywhere controlling everyone’s work. We experimented with ‘green’, by introducing co-ownership and having people feel they own part of the business. That worked much better. We had our people take responsibilities over the client’s results and take team responsibilities over the long term. But, when times were bad or changes were needed, this level of maturity stalls the company. So, I almost went back to “red” out of frustration, until I read about the color “teal”. And that’s where I felt back on track. This is the organizational concept that we are now looking into. And that’s why the journey organized by the Argonauts is so important for us.

Self-steering looks promising, but we are not there yet. We have a lot to discover, learn, and try. But what I already learned, is that there is no text-book always-right model for company organization. I also discovered self-steering is more wrongly than rightly understood. Self-steering is about getting and taking responsibility. It has nothing to do with ‘go as you please’. Although there is no daily boss or chief in a self-steering organization, for everyone from cleaning lady to general manager, there are much more people to take into account and ask for their opinion than ever before.

Capital increase for Participium

Today Paul Indekeu en Jan Lagast went to visit a notary, in order to increase their share in Participium CVBA. With that transaction they become main shareholders in Participium. More importantly today’s capital increase confirms that both Paul and Jan have great faith in the future of Participium.

What happened today is more than a financial transaction. It is a symbolic act to show that Participium is on the right track and that Paul and Jan know that Participium’s purpose ‘make more people love their work’ is worthwhile.

Purpose-centricity starts at the top

Money and people are cold lovers. Investment and purpose, therefore, are not each others natural allies. When short-term results take the lead, it is much more difficult to motivate people to create value for customers. But, value for customers, is what brings in long-term results. That’s why, investors who understand that making money is not the main priority, have the best chance to make money on the long term.

Building purpose-centric companies

Building purpose-centric companies is what Participium tries to achieve. We are building several companies from idea to growth. Each of these companies should help people to be more happy at work. That is our purpose. And, it is the mother-purpose for all the companies we are building.

That’s why FunkyTime helps knowledge workers, project managers and operations managers to have  a more ‘funky’ time. That’s why Forte changes technical companies into market-oriented companies, since market orientation does make it more easy to motivate all workers to strive for the same goal.

Attracting compatible investors

There is a base law for business and industry, that says “shit always goes down”. In order to ensure we do the right things ourselves, we are ensuring purpose alignment from the top. The articles of association of Participium include an explicit statement that refers to our nature of long-term investment. We even have statements that allow us to exclude a main investor who is not in line with our purpose any longer. We are going to continue on this path, and are now creating a charter based on the values ‘trust’, ‘results’, and ‘passion’ that will refer to the purpose. And of course, when introducing new investors, we check first, whether they are aligned. Not an easy task, since ‘taking the money’ is tempting.

Interested to find out how this is going? Feel free to drop a line.

Tax shelter explained

Earlier this year Participium was a guest at Mazars for an info session on tax shelter for start-ups. The info session was aimed at (future) private investors who want to invest in young promising companies and fully exploit the tax benefits.

With his extensive expertise in tax & accountancy, Peter De Vos of Mazars comprehensively explained the legal and fiscal aspects of the tax shelter.

Because the attendees were very enthousiastic about what they had learned that evening and because we are convinced that the information can be interesting for any (potential) investor, we shared Peter’s full presentation (in Dutch) on the Participium YouTube channel and at the bottom of this news item. We have put the slides of Peter’s presentation in the video, so you don’t have to miss a thing of the interesting session.

Successful event on tax shelter for start-ups

April 27th Jan Lagast was invited as a guest speaker at Mazars for an info session on tax shelter for start-ups. The info session focused on (future) private investors who want to invest in young promising companies and fully enjoy the tax benefits the Belgium government provides.

It was a convivial meeting in the former living room of baron Braun on the top floor of the renowned UCO tower in Ghent, where the accountancy department of Mazars has its offices.

Based on his vast expertise in tax & accountancy Peter De Vos (Mazars) gave a clear explanation on the legal and the financial aspects of the tax shelter. Later Jan Lagast gave – from his first-hand experience as company builder with Participium – advice on how to inquire whether or not a company is worth your investment.

Afterwards, the public of (future) investors seemed very positive about what they had learned that night.

Investing from your easy chair

Last Thursday, May 26th, Participium was present in the Maria Goretti church at the Blaisantvest in Ghent. This church was bought by non-profit organisation DOIC and made it a multifunctional meeting center. The conservation works have already been carried out. A beautiful new interior will be created through crowdfunding. For us it was a perfect setting to explain the difference between investing with a purely financial goal and investments that go far beyond money, but are all about involvement and creating value.

 

Financial participation is taking part in the adventure

The name Participium refers to participation. You might already have understood that. But it was never properly explained what that participation exactly means. For many, participation only means a contribution in capital. And that is not the intention of Participium. Quite the opposite.

Participating in the adventure

For us, even participating with capital means more than a financial transaction. It should mean taking part in an adventure. Whether it concerns a growth company or a starter, a growth spurt is the least predictable period in a company’s life. At the same time, it is the most fascinating period. These are the times where entrepreneurs are distinguished from managers. At this point, insight, experience, gut feeling and drive are more important than spreadsheets.

Therefore, Participium advises growth companies to attract more than one investor in their search for capital. And by involving those investors enough to being able to take part in the adventure. This way they get the chance to help and contribute where they can. They could open doors… or provide hints.

Attract several investors

By attracting several investors, you avoid that one large investor-owner dominates the team of entrepreneurs. A broad group of investors allows the entrepreneurs to do their business. It gives them the opportunity to realize that adventure together and to develop the necessary drive to achieve success. It also opens up opportunities for employees and partners to participate in that success.

Meanwhile, Participium wants to help. Helping to manage. Helping to win. That also is participation. Participium supports growth companies to fully realize their potential in a well-founded way.

That is what Participium stands for. Jan Lagast hopes that many are willing to help Participium realize this beautiful adventure. He thanks you in advance for your participation.

About Mondragon

I saw a VPRO documentary about Mondragon. It’s a pity they wanted to mix the Basque separatist movement with the cooperative culture from the city of Mondragon, but it’s still a great movie for anyone who wants to know more about shared ownership and its benefits for business and society.

See for yourself on the Tegenlicht website