MariGreen Farms (MGF) - Cannabis Grower

  

Cannabis Industry - Secondary Market Opportunities

  

EMPOWER WITH PRIME

  

Join the Green Rush!

  

Disaster restoration company

  

Floating Dock Company - Commercial / Residential

  

400 000 Warrants available for pre IPO USA Tech startup.

  

Pet Treat manufacture with huge growth potential in $28 billion dollar sector.

  

Commercial Roofing Opportunity- Lucrative Margins

  

Own part of renewable energy Anaerobic Digester in Canada with promising returns

  

Breathe Activewear

  

Silo Estate Investment Proposal

  

www.EthanTrader.com "Ethan" the Ethereum Trading Bot. 9X Gains Per Year.

  

New Lawn turfgrass company

  

Bakery Opportunity

  

You have found the perfect investment if..

  

Mobile Application for Planning Events

  

Own part of a Natural Gas station in Burnaby BC

  

Profitable Adventure Park Operator Requires Capital To Add More Locations

  

Lake Muskoka Marina - investment with lots of growth potential!

  

Franchise Opportunity

  

Canadian Cannabis Microgrower

  

Magnaboard Product Launch

  

Real Estate limited partnership / RE investment syndicate

  

Residential New Home Construction

  

Aumi Light

  

Cedars Taphouse & Grill

  

Multipurpose event venue catering specifically to PC and console gaming enthusiasts.

  

Apartment Development - High Cap rate

  

Automated Drive Thru Intelligent Assistant - via Artificial Intelligence

  

Restaurant Franchising Opportunity

  

Marina US, NC Yacht, Fish and Hunting Sports Center with year around activity

  

Cannabis Production Facility

  

BOAA - Blockchain powered video game

  

Silent Opportunity: $4.5MM for 20% of a Profitable Business Supporting Hydroponics

  

Make money 24/7 worldwide with WWW.BOOST.CLOTHING

  

"Shoot" Group Picture and Video Sharing App

  

Saskatchewan Grain Farm purchase, 21,000 acres

  

Let's Make Money Together!

  

Let's scale up and cash out!

  

 

Canadian Investment Network


Recent Blogs


Pitching Help Desk


Testimonials

"We have already had one investor for $25K, and another who is very involved in the food business, who could be a funder on a much larger level. So we are very pleased, and offer our thanks."
Bruce J.

 BLOG >> Recent

Generative Versus Extractive Ownership Design [Design
Posted on January 7, 2016 @ 09:49:00 AM by Paul Meagher

Today I finished reading Marjorie Kelly's book Owning Our Future (2102) which I first blogged about last October. My first blog was more concerned with highlighting the idea that there was another type of design that we should be concerned with, ownership design, and that startups and businesses might do well to consider this aspect of design when setting up and managing their business. In this blog I want to summarize the main message from the book which is to contrast two types of ownership design - extractive and generative. Most of our economy is governed by an extractive ownership design but there are examples of successful generative ownership designs as well. Her book involves rooting out generative companies and telling their story and why they are examples of generative ownership design.

We can differentiate these 2 types of ownership design on the basis of 5 contrasting patterns that typify extractive versus generative designs.

In extractive ownership designs we have (p. 18):

  • Financial Purpose: maximizing profits in the short term
  • Absentee Membership: ownership disconnected from life of enterprise
  • Governance By Markets: control by capital markets on autopilot
  • Casino Finance: capital as master
  • Commodity Networks: trading focused solely on price and profits

By contrast, in generative ownership designs we have (p. 18):

  • Living Purpose: creating the conditions for life over the long term
  • Rooted Membership: ownership in human hands
  • Mission-Controlled Governance: control by those dedicated to social mission
  • Stakeholder Finance: capital as friend
  • Ethical Networks: collective support for ecological and social norms

It would be difficult for me to elaborate further upon these differences in this blog as the purpose of the book as a whole was to provide case studies that elaborated upon these differences. I recommend buying the book if you want to know more details.

One impressive generative company discussed in the book is the John Lewis Partnership which operates retail and grocery shops in the UK. Their financial performance is quite good (from Wikipedia):

Financial year Turnover Profit before tax Net profit Partner bonuses Profit retained
2013-2014 £10.2 billion £376.0 million
2012–2013 £9.54 billion £509.0 million £409.6 million £210.8 million (17%) £198.8 million
2011–2012 £8.73 billion £393.3 million £353.8 million £165.2 million (14%) £188.6 million
2010–2011 £8.2 billion £431 million £367.7 million £194.5 million (18%) £173.4 million
2009–2010 £7.4 billion £389 million £306.6 million £151.3 million (15%) £155.3 million
2008–2009 £7 billion £279.6 million £580 million £125.5 million (13%) £146.0 million
2007–2008 £6.8 billion £379.8 million £320.4 million £181.1 million (20%) £198.7 million
2006–2007 £6.4 billion £319.2 million £263.2 million £155 million (18%) £164 million
2005–2006 £5.7 billion £251.8 million £215.1 million £120.3 million (15%) £94.8 million
2004–2005 £5.3 billion £215.3 million £175.9 million £105.8 million (14%) £70.1 million
2003–2004 £5.0 billion £173.5 million £148.8 million £87.3 million (12%) £61.5 million
2002–2003 £4.7 billion £145.5 million £108.6 million £67.6 million (10%) £41.0 million
2001–2002 £4.4 billion £141.5 million £103.3 million £57.3 million (9%) £46.0 million
2000–2001 £4.1 billion £149.5 million £120.4 million £58.1 million (10%) £62.3 million
1999–2000 £3.7 billion £194.7 million £161.0 million £77.8 million (15%) £83.2 million

The employees are "partners" who have ownership in the company. The most significant manifestation of this is the yearly bonuses they receive which are based on 50% of the net profits of the company. On good years this can be up to 20% of their yearly wage (see the 2007-2008 financial year). The company has elaborate policies, structures and people in place to ensure that the idea of the company as a partnership is kept alive and well.

The company came to be owned by employees when the original owner, John Spedan Lewis, decided to sell his interest in his company to employees as he neared his retirement (this is a simplification of the process as it involved setting up a trust with a fair shares charter at the core of the future business). On his death he ceded his property over to the company as well.

Marjorie points out that our current demographic situation means that many baby boomer business owners are reaching retirement age and one choice they may opt for in order to maintain their legacy is to sell their business to their employees rather than to the highest bidder who might run it according to an extractive ownership design which often leaves no legacy or not the legacy the owners wanted to leave to the workers that helped him/her succeed. Marjorie's book is a useful resource for those interested in making the move towards a generative ownership design - what it means and examples of how it might be done.

Permalink 

 Archive 
 

Categories


 Agriculture [67]
 Bayesian Inference [14]
 Books [14]
 Business Models [24]
 Causal Inference [2]
 Creativity [7]
 Decision Making [15]
 Decision Trees [8]
 Design [36]
 Eco-Green [3]
 Economics [11]
 Education [10]
 Energy [1]
 Entrepreneurship [53]
 Events [2]
 Farming [19]
 Finance [25]
 Future [15]
 Growth [16]
 Investing [23]
 Lean Startup [9]
 Leisure [5]
 Lens Model [9]
 Making [1]
 Management [9]
 Motivation [3]
 Nature [22]
 Patents & Trademarks [1]
 Permaculture [34]
 Psychology [1]
 Real Estate [2]
 Robots [1]
 Selling [11]
 Site News [13]
 Startups [12]
 Statistics [3]
 Systems Thinking [2]
 Trends [5]
 Useful Links [3]
 Valuation [1]
 Venture Capital [5]
 Video [2]
 Writing [2]