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Shareholding model
Shareholding model, converting personal energy into equity
Chapter 9 p.9
A colleague of mine said that the fact that you can get shares in a company compensates for the lack of job security. I thought that I had a secure job!
Can you explain this concept of shareholding to me?
There will never be job security. You will be employed as long as you add value to the organization, and you are continuously responsible for finding new ways to add value.
In return, you have the right to demand interesting and important work, the freedom and resources to perform it well, pay that reflects your contribution, and the experience and training needed to be employable here or elsewhere. Ultimately, an objective of the organization is to maximize shareholder value and the question is ‘how’ this is to be achieved?
Your company’s vision endorses a quest to maximize the creation of sustainable wealth through effective ownership and participation. In the light of the fore going fiduciary duties, the following points would characterize the application of the “Entrepreneurial Shareholding Model”.
Shares will only be issued or purchased by the company when growth has occurred and is reflected in the company’s profits.
This may require the company to be cash positive and having cash assets which can be converted into cash. The percentages that will be used to distribute the profit and shares will be set by a process of evaluating economic value and negotiating and apportioning of shares accordingly.
In accordance with the your company shareholding model, shares can be issued to those employees that are considered to have made an entrepreneurial contribution to the growth of the business.
OK, that last point explains to me how I will qualify for shares in the company. I’ve also heard of “Entrepreneurial Energy” before. How does it link with shareholding?
Your company identifies three principle contributors that have a varying effect on the creation of sustainable wealth:
Varying effect of the principal contributors:
Financial investment/capital and associated financial risk or exposure, into an entrepreneurial venture.
Entrepreneurial energy, sometimes referred to as ‘sweat’ capital, which is needed to establish, grow and direct the
venture into sustainable wealth creation. This also includes personal risks and all its attributes.
Platform, including intellectual capital, suppliers and customer relationships, and organizational processes, which give rise to the workings, existence and operations of the venture.
That’s interesting! Can you tell me more about “Entrepreneurial Energy?”
To establish, grow and direct a company into an organization capable of sustainable wealth creation requires a process.
An integral part of this process is risk management, including risk assessment. When assessing the entrepreneurial energy contributed by individuals to the organization, the following criteria are applied:
Individual energy:
Achievement
Calculated Risk Behavioral (entrepreneurial).
The extent to which individual energy achieves goals.
Focusing on sustainable wealth creation.
The appraisal of individual achievement forms an integral part of the entrepreneurial sector within the shareholding framework.
Calculated risk
Imperative to a successful entrepreneurial business is successful risk management.
Your business recognizes that both the individual and the organization takes risks in creating and growing sustainable wealth.The diagnosis of the individual’s risk versus the organization’s risk management leads to the development of a ‘Calculated Risk Balance Sheet’.
Behavioral
Creating sustainable wealth emphasizes and calls for behavioral attributes that bring to bear successful stewardship.
Parameters for diagnosing behavioral participation include:
People management.
Planning and scheduling.
Monitoring, controlling and reporting.
Implementing and organizing.
By now it should be clear that being part of the company, is not just about being at work and getting a salary. The ultimate focus is on the contribution you can make to the sustainable wealth creation of the company.
On the other hand, your company recognizes that the sharing of wealth is a natural progression for entrepreneurs. The company strives towards Holistic Compensation for contributions made; where it is not only about what you take home each month, but where compensation fulfills needs on different levels for the individual, while also contributing towards building the organization. Converting energy into equity is one way in which this can be achieved.

For career and Socioeconomic platforms, we will update this page. NOV 2012

Contribute to others and down the road you will collect, grow health, happiness and wealth.

You will get business, career and investment opportunities.

Shareholding model, converting personal energy into equity

Chapter 9 p.9

w&t_question

I Ask

A colleague of mine said that the fact that you can get shares in a company compensates for the lack of job security. I thought that I had a secure job!

Can you explain this concept of shareholding to me?

w&t_exclamation

I Answer

There will never be job security. You will be employed as long as you add value to the organization, and you are continuously responsible for finding new ways to add value.

In return, you have the right to demand interesting and important work, the freedom and resources to perform it well, pay that reflects your contribution, and the experience and training needed to be employable here or elsewhere. Ultimately, an objective of the organization is to maximize shareholder value and the question is ‘how’ this is to be achieved?

Your company’s vision endorses a quest to maximize the creation of sustainable wealth through effective ownership and participation. In the light of the fore going fiduciary duties, the following points would characterize the application of the “Entrepreneurial Shareholding Model”.

  • Shares will only be issued or purchased by the company when growth has occurred and is reflected in the company’s profits.
  • This may require the company to be cash positive and having cash assets which can be converted into cash. The percentages that will be used to distribute the profit and shares will be set by a process of evaluating economic value and negotiating and apportioning of shares accordingly.
  • In accordance with your company shareholding model, shares can be issued to those employees that are considered to have made an entrepreneurial contribution to the growth of the business.
w&t_question

I Ask

OK, that last point explains to me how I will qualify for shares in the company. I’ve also heard of “Entrepreneurial Energy” before. How does it link with shareholding?

w&t_binoculars

I Explain

Your company identifies three principle contributors that have a varying effect on the creation of sustainable wealth:

w&t_ch9_j_your_shareholding_model_converting_energy_into_equity

Varying effect of the principal contributors:

Financial investment/capital and associated financial risk or exposure, into an entrepreneurial venture.

Entrepreneurial energy, sometimes referred to as ‘sweat’ capital, which is needed to establish, grow and direct the venture into sustainable wealth creation. This also includes personal risks and all its attributes.

Platform, including intellectual capital, suppliers and customer relationships, and organizational processes, which give rise to the workings, existence and operations of the venture.

w&t_question

I Ask

That’s interesting! Can you tell me more about “Entrepreneurial Energy?”

w&t_exclamation

I Answer

To establish, grow and direct a company into an organization capable of sustainable wealth creation requires a process.

An integral part of this process is risk management, including risk assessment. When assessing the entrepreneurial energy contributed by individuals to the organization, the following criteria are applied:

Individual energy:

Achievement

  • Calculated Risk Behavioral (entrepreneurial).
  • The extent to which individual energy achieves goals.
  • Focusing on sustainable wealth creation.
  • The appraisal of individual achievement forms an integral part of the entrepreneurial sector within the shareholding framework.

Calculated risk

  • Imperative to a successful entrepreneurial business is successful risk management.
  • Your business recognizes that both the individual and the organization takes risks in creating and growing sustainable wealth.The diagnosis of the individual’s risk versus the organization’s risk management leads to the development of a ‘Calculated Risk Balance Sheet’.

Behavioral

Creating sustainable wealth emphasizes and calls for behavioral attributes that bring to bear successful stewardship.

Parameters for diagnosing behavioral participation include:

w&t_binoculars

I Explain

By now it should be clear that being part of the company is not just about being at work and getting a salary. The ultimate focus is on the contribution you can make to the sustainable wealth creation of the company.

On the other hand, your company recognizes that the sharing of wealth is a natural progression for entrepreneurs. The company strives towards Holistic Compensation for contributions made; where it is not only about what you take home each month, but where compensation fulfills needs on different levels for the individual, while also contributing towards building the organization. Converting energy into equity is one way in which this can be achieved.

Company rules
Rules, principles, beliefs and processes within a company
Chapter 2 p.1
For me, a company’s goals and values embody what the company is all about. On the one hand it serves as a set of indicators on which customers can base their expectations of the company. On the other hand it serves as a set of drivers which guide the employee’s performance and behavior in relation to customers and colleagues.
Yes, you’re quite right. A company believes in setting clear goals to which endeavors are directed. Company values the principles and accepted standards of the group. The management goals set the parameters within which we operate in our quest to grow in business to maximize returns for shareholders, partners, customers, suppliers and team members.
Company values
(The principles or accepted standards of the group)
Undertake to:
Treat our colleagues, clients and suppliers as partners by pro-actively listening, understanding and fulfilling their needs.
Acknowledge and pursue the principle of teamwork to further develop and grow the synergies between the respective partners.
Respect initiative, self-motivation and ownership.
Commit to the pursuit of technological leadership and developments.
Focus on the development and application of skills to ensure added value to all stakeholders.
Maintain balance between business and the meaningful development of people relationships.
Management goals
We undertake to:
Maximize shareholders’ value of their investment through continuous wealth generation.
Reflect successful endeavors and contribution through an equity share.
Optimize our human resources through development, performance and incentives.
Facilitate the growth and value of intellectual property by developing our markets.
Pursue African and international growth opportunities to add value and opportunities for all stakeholders.

Rules, principles, beliefs and processes within a company

Chapter 2 p.1

w&t_question

I Ask

For me, a company’s goals and values embody what the company is all about. On the one hand it serves as a set of indicators on which customers can base their expectations of the company. On the other hand it serves as a set of drivers which guide the employee’s performance and behavior in relation to customers and colleagues.

w&t_exclamation

I Answer

Yes, you’re quite right. A company believes in setting clear goals to which endeavors are directed. Company values the principles and accepted standards of the group. The management goals set the parameters within which we operate in our quest to grow in business to maximize returns for shareholders, partners, customers, suppliers and team members.

Company values

The principles or accepted standards of the group.

Undertake to:

  • Treat our colleagues, clients and suppliers as partners by pro-actively listening, understanding and fulfilling their needs.
  • Acknowledge and pursue the principle of teamwork to further develop and grow the synergies between the respective partners.
  • Respect initiative, self-motivation and ownership.
  • Commit to the pursuit of technological leadership and developments.
  • Focus on the development and application of skills to ensure added value to all stakeholders.
  • Maintain balance between business and the meaningful development of people relationships.

Management goals

We undertake to:

  • Maximize shareholders’ value of their investment through continuous wealth generation.
  • Reflect successful endeavors and contribution through an equity share.
  • Optimize our human resources through development, performance and incentives.
  • Facilitate the growth and value of intellectual property by developing our markets.
  • Pursue African and international growth opportunities to add value and opportunities for all stakeholders.
Other resources
Other resources we found to be of great value!
Please select a career development web site:

Other resources we found to be of great value!

Please select a career development web site:

  • Advance Career & Professional Development–Your professional success is our business
    Professional development coaching and career support
  • America’s Career Resource Network (ACRN) Website Contact Information
    Provides contact information for the National Training Support Center, which manages the America’s Career Resource Network (ACRN) website.
  • Bi-College Career Development Office
    Contact Us | Site Map | Search Bryn Mawr College Haverford College Students
  • CICD – Center for International Career Development [International Training – J-1 Visa]
    Interested in international internships and training? The Center for International Career Development can help you get the international experience you’re looking for.
  • Career Development
    Career Center Career Development Telephone Nurse Triage by Sara Courson, BSN Telephone Nurse Triage Job Search
  • Career Development
    Home Students Employers Alumni Faculty Parents
  • Career Development Center
    Welcome to Fedcareer.Info . This site assists federal government civil service employees to design realistic (IDPs) Individual Development Plans
  • Career Development Center – Minnesota State University, Mankato (MSU)
    Minnesota State University Home Academics Admissions Administration Athletics Mav Life Computing Library Services Career Development Center CDC Home About CDC
  • Career Development Center for Postdocs and Junior Faculty
    This week at the Career Development Center…
  • Career Development Grants
    Promoting Education and Equity for Women and Girls
  • Career Development and Career Resources from O*Net
    Career Development and Career Resources from O*Net
  • Career Development and Preparation – Home Page
    The Career Development and Preparation Division in the Center for Teaching and learning provides leadership and technical assistance to local district, regional and state agency staff to support quality Career and Technical Education (CTE)
  • Career Development eManual Homepage | Career Services | University of Waterloo
    Career Services Homepage
  • Career Testing
    Career tests developed by psychologists that really work
  • Contact Information
    The Career Practitioner’s Resource: We offer career books–career development, life-path, resumes—at up to 30% off. The Career Trainer Learning Center provides an invaluable resource—the archives from the Career Planning and Adult Development Journal
  • ERIC/CASS Closed – December 19, 2003
    On December 19, 2003 the ERIC Clearinghouse on Counseling and Student Services closed. The ERIC Clearinghouse on Counseling and Student Services was closed by the U.S. Department of Education as of Dec. 19, 2003. If you are looking for the new ERIC contractor or the ERIC database, please go to
  • Emerald News & Information – Contact Details
    contact details emerald group publishing limited
  • General Information
    ome visit us in the Student Services Center ! Monday through Friday 8:00 a.m. – 4:30 p.m. The Career Development Center (CDC) provides career counseling and planning assistance to all students and alumni. We maintain an up-to-date career library containing occupational information, job search guides, employer/school district directories, corporate literature and graduate/professional school information.
  • Great Oaks – Contact Us
  • JobWeb – College Resources
    Links to college resources including alumni and career center web sites, and to schools by the subject they teach.
  • Kalamazoo College Center for Career Development
    Kalamazoo College Center for Career Development
  • NIH Extramural Training: K Kiosk – Information about NIH Career Development Awards
    K Kiosk – Information about NIH Career Development Awards
  • PCDI distance learning trains people for better careers!
    PCDI is a nationally accredited home study school offering distance learning courses. Learn a new career, get your high school diploma or associate degree.
  • Quintessential Careers: College, Careers, and Jobs Guide
    Start your job-search here! We have the tools to help you succeed, including expert advice, career articles, and the best job sites on the Web.
  • US NSF – Funding – Faculty Early Career Development (CAREER) Program
    NSF Web Site News Discoveries Funding Publications Awards HOME FUNDING AWARDS DISCOVERIES NEWS PUBLICATIONS STATISTICS ABOUT FastLane Funding Funding
  • USD – Career Development Center Home
    search site people | USD A to Z Home Future Students » Future Students Home Admissions Apply Now!
  • UWM Career Development Center Homepage
    University of Wisconsin-Milwaukee Career Development Center
  • University at Albany – Career Development Center
    You need to have a javascript enabled browser to see this menu. Internet Explorer 5+ and Netscape 4.7+ will work. Welcome CDC Semester Hours: 9:00 AM – 5:00 PM
  • Washington College | Career Development
    A high-ranking national liberal arts college founded in 1782 located near the Chesapeake Bay on Maryland’s Eastern Shore.
  • The Process approach
    A way of viewing the company and your role in it as a whole
    Chapter 10 p.3
    I’ve heard people refer to the “Process Approach”, but I don’t understand what it is all about and how I can benefit from it.
    The Process Approach is about a way of viewing the company and your career as a whole. Explore the diagram below. Remember that you are looking at a simple and logical framework for all business activities and initiatives. The approach applies to all activities (from selling, ordering, admin, etc.) and can be uniformly applied.
    When processes are in place, people know what to do, when and for whom, eliminating the need for process loss and uncertainty.
    It also eliminates fragmentation of departments/teams and reduces the possibility of empire-building. People can take charge of their jobs, freeing up their manager’s time to enable him to concentrate on the improvement of business processes.
    Central to the process approach are five simple rules that introduce order into chaos:
    State the objective of the process – what must be achieved?
    State the reason – why must the objective be achieved?
    Formulate how the process is to achieve this objective (the process requirements) What must be done in what way to achieve the objective? Focus specifically on what the desired output and required input is.
    Design the primary process to handle the requirements – what must be done
    by whom, by when, for whom, and with what?
    Define the process control mechanism – what mechanism(s) will be used as an indicator(s) of how well the process is working?

    A way of viewing the company and your role in it as a whole

    Chapter 10 p.3

    w&t_question

    I Ask

    I’ve heard people refer to the “Process Approach”, but I don’t understand what it is all about and how I can benefit from it.

    w&t_exclamation

    I Answer

    The Process Approach is about a way of viewing the company and your career as a whole. Explore the diagram below. Remember that you are looking at a simple and logical framework for all business activities and initiatives. The approach applies to all activities (from selling, ordering, admin, etc.) and can be uniformly applied.

    When processes are in place, people know what to do, when and for whom, eliminating the need for process loss and uncertainty.

    It also eliminates fragmentation of departments/teams and reduces the possibility of empire-building. People can take charge of their jobs, freeing up their manager’s time to enable him to concentrate on the improvement of business processes.

    w&t_ch10_d_the_process_approach

    Five simple rules that introduce order to chaos:

    1. State the objective of the process – what must be achieved?
    2. State the reason – why must the objective be achieved?
    3. Formulate how the process is to achieve this objective (the process requirements). What must be done in what way to achieve the objective? Focus specifically on what the desired output and required input is.
    4. Design the primary process to handle the requirements – what must be done, by whom, by when, for whom, and with what?
    5. Define the process control mechanism – what mechanism(s) will be used as an indicator(s) of how well the process is working?
    Career councelling traps
    Beware of falling into unintentional communication and perception traps
    Chapter 8 p.5
    During my recent assessment interview, my team leader referred to a blunder I made three months ago. Though I learnt a lot from that mistake and never made it again, I feel that his perception of me has remained stuck on that incident. How can I persuade him that his idea of my competency is wrong?
    It appears as though your team leader stepped into a career counseling trap called a “splodge”.
    In our every day dealings with others, especially with regard to performance management, we should beware of falling into certain unintentional communication and perception traps.
    Could you explain some of those counseling traps?
    Contrast effect
    Rating a team member against other team members, rather than against the criteria of identified Key Results Areas. Ratings should be based on the expectations the evaluator communicated to the team member when reviewing Key Results Areas criteria at the beginning of the assignment.
    First impression / Latest behavior effect
    A tendency to make an early positive or negative judgement of the team member and then to ignore or distort additional information. Ratings must be based on performance throughout the appraisal period rather than on initial or most recent impressions.
    Halo / Horn effect
    Generalizing one aspect of the team member’s performance to other aspects of his or her performance. This may result in an inaccurate results assessment.
    Similar to self effect
    Judging in favour of those team members who are seen as similar to the evaluator.
    Central tendency effect
    Consistently rating a team member as average rather than making the effort to give valid ratings. Such ratings fail to distinguish good and bad performance and may delay work on areas for development.
    Spill-over effect
    Allowing the team member’s past performance ratings, whether good or bad, to unjustly influence the evaluator’s current ratings of team member’s performance. The Key Results Areas for the most recent period is the cornerstone.
    Generalization / Third party effect
    Making generalizations rather than using sentences such as: “I noticed this when you did …” This lets the team member know specifically what you mean when you are praising or coaching.
    Splodges
    Retaining a memory of a negative incident pertaining to the team member and allowing yourself to be influenced by it, even long after it has become irrelevant. It remains in the relationship and is like a “splodge” on a white shirt. The splodge will always be there and will accumulate until the shirt is black or it is washed.
    Thank you to: HP wisdom and Chuck Bonza
    Some of the concepts discussed earlier in the book such as Emotional Awareness (Elephant Behaviour) and Information, will be helpful when learning how to sidestep these traps

    Beware of falling into unintentional communication and perception traps

    Chapter 8 p.5

    w&t_question

    I Ask

    During my recent assessment interview, my team leader referred to a blunder I made three months ago. Though I learnt a lot from that mistake and never made it again, I feel that his perception of me has remained stuck on that incident. How can I persuade him that his idea of my competency is wrong?

    w&t_exclamation

    I Answer

    It appears as though your team leader stepped into a career counseling trap called a “splodge”.

    In our every day dealings with others, especially with regard to performance management, we should beware of falling into certain unintentional communication and perception traps.

    w&t_question

    I Ask

    Could you explain some of those counseling traps?

    Contrast effect

    Rating a team member against other team members, rather than against the criteria of identified Key Results Areas. Ratings should be based on the expectations the evaluator communicated to the team member when reviewing Key Results Areas criteria at the beginning of the assignment.

    First impression / Latest behavior effect

    A tendency to make an early positive or negative judgement of the team member and then to ignore or distort additional information. Ratings must be based on performance throughout the appraisal period rather than on initial or most recent impressions.

    Halo / Horn effect

    Generalizing one aspect of the team member’s performance to other aspects of his or her performance. This may result in an inaccurate results assessment.

    Similar to self effect

    Judging in favour of those team members who are seen as similar to the evaluator.

    Central tendency effect

    Consistently rating a team member as average rather than making the effort to give valid ratings. Such ratings fail to distinguish good and bad performance and may delay work on areas for development.

    Spill-over effect

    Allowing the team member’s past performance ratings, whether good or bad, to unjustly influence the evaluator’s current ratings of team member’s performance. The Key Results Areas for the most recent period is the cornerstone.

    Generalization / Third party effect

    Making generalizations rather than using sentences such as: “I noticed this when you did …” This lets the team member know specifically what you mean when you are praising or coaching.

    Splodges

    Retaining a memory of a negative incident pertaining to the team member and allowing yourself to be influenced by it, even long after it has become irrelevant. It remains in the relationship and is like a “splodge” on a white shirt. The splodge will always be there and will accumulate until the shirt is black or it is washed.

    Thank you to: HP wisdom and Chuck Bonza

    w&t_elephant

    I Advise

    Some of the concepts discussed earlier in the book such as Emotional Awareness (Elephant Behavior) will be helpful when learning how to sidestep these traps.

    Definition of success
    A process of incremental growth in personal capacity
    Chapter 4 p.6
    What does personal success mean within a company?
    Being successful implies:
    A process of logical incremental growth in personal capacity in line with your chosen level of self actualization within your current goal cycle; combined with sustainable high financial and productive growth, while striving for inner peace and the chosen balance in your own life. Now that’s a mouthful!
    Have FUN and grow your capacity to contribute to the success of the company and your career in terms of profit and growth, enjoy reaching a level where you can effectively teach others through example, coaching and mentioning.
    The Maslow triangle
    As we indicated earlier, success will be measured by the degree of overlap amongst the needs of the company, the customer and you.
    But is there anything that I can use to help me grow towards success in my company?
    You can use the various tools in this book, like The Issue Resolution Module Model, The Six Thinking Hats, Emotional Awareness, The Order Cycle, to name but a few, to enable and empower you to be even more effective.
    Developing these skills forms part of your Walk & Talk process within your company.

    A process of incremental growth in personal capacity

    Chapter 4 p.6

    w&t_question

    I Ask

    What does personal success mean within a company?

    w&t_exclamation

    I Answer

    Being successful implies:

    A process of logical incremental growth in personal capacity in line with your chosen level of self actualization within your current goal cycle; combined with sustainable high financial and productive growth, while striving for inner peace and the chosen balance in your own life. Now that’s a mouthful!

    Have FUN and grow your capacity to contribute to the success of the company and your career in terms of profit and growth, enjoy reaching a level where you can effectively teach others through example, coaching and mentioning.

    w&t_ch4_e_cupgrowth

    The Maslow triangle

    w&t_elephant

    I Advise

    As we indicated earlier, success will be measured by the degree of overlap amongst the needs of the company, the customer and you.

    w&t_question

    I Ask

    But is there anything that I can use to help me grow towards success in my company?

    w&t_binoculars

    I Explain

    You can use the various tools in this book, like The Issue Resolution Module Model, The Six Thinking Hats, Emotional Awareness, The Order Cycle, to name but a few, to enable and empower you to be even more effective.

    Developing these skills forms part of your Walk & Talk process within your company.

    Stages of company growth
    Stages of growth in an entrepreneurial company
    Chapter 2 p.2
    You say that certain companies are not start-up companies any more and that they are moving into a different stage…You also indicated that different people’s strengths and skills relate to different phases of development…Can you explain this to me?
    Organizations go through different stages of growth.
    The first stage of an entrepreneurial company is typically pioneering by nature where a small group of people start a business with a lot of creativity and enthusiasm. The initiators are involved in every aspect of the business.
    As the business grows and more people join the company a need develops for efficiency and control. Consequently more formal management systems have to be introduced. The marketing demands, to ensure growth, also increase.
    As the business continue to grow it becomes more diverse in its activities. The next phase focuses on enhancing effectiveness and internal co-operation, with business integration becoming a major objective. This requires the addition of more experienced management skills into the organization.
    Eventually a company will grow to a size where the social and community demands – both within the company and its external environment – become critical considerations. Once again entirely different managerial skills are require, concentrating on aspects such as empowerment, transparency and consultation with all stakeholders. It also required an adjustment of the internal culture of the organization.
    Different people have a natural aptitude to play different management roles during the growth of a company. Four different roles can be identified:
    Initiators:
    Breaking ground, opening up potential markets, getting leads and making new contacts.
    Advancers:
    Developing business opportunities beyond the initial phase, converting leads into business contracts.
    Implementers:
    Building long-term business and community relationships and ensuring business momentum.
    Maintainers:
    Keeping current business processes intact, developing new systems and processes to enhance efficiency and effectiveness.

    Stages of growth in an entrepreneurial company

    company development stages

    Ask

    You say that certain companies are not start-up companies any more and that they are moving into a different stage…You also indicated that different people’s strengths and skills relate to different phases of development…Can you explain this to me?

    stages of company growth

    Answer

    Organizations go through different stages of growth.

    The first stage of an entrepreneurial company is typically pioneering by nature where a small group of people start a business with a lot of creativity and enthusiasm. The initiators are involved in every aspect of the business.

    As the business grows and more people join the company a need develops for efficiency and control. Consequently more formal management systems have to be introduced. The marketing demands, to ensure growth, also increase.

    As the business continue to grow it becomes more diverse in its activities. The next phase focuses on enhancing effectiveness and internal co-operation, with business integration becoming a major objective. This requires the addition of more experienced management skills into the organization.

    Eventually a company will grow to a size where the social and community demands – both within the company and its external environment – become critical considerations. Once again entirely different managerial skills are require, concentrating on aspects such as empowerment, transparency and consultation with all stakeholders. It also required an adjustment of the internal culture of the organization.

    company stages of growth

    Company stages of growth

    Different people have a natural aptitude to play different management roles during the growth of a company. Four different roles can be identified:

    Initiators:

    Breaking ground, opening up potential markets, getting leads and making new contacts.

    Advancers:

    Developing business opportunities beyond the initial phase, converting leads into business contracts.

    Implementers:

    Building long-term business and community relationships and ensuring business momentum.

    Maintainers:

    Keeping current business processes intact, developing new systems and processes to enhance efficiency and effectiveness.

    Case study from Barry du Plessis
    Why delegation?
    Barry’s workload increased to the point that he could no longer manage the number of projects. As a team they identified the need to delegate.
    Which individual career would benefit the most?
    Elsabie was identified as the person to whom they would entrust a number of projects. She was presently functioning as a PA. She had experience in customer care but had no formal project planning knowledge or experience.
    She was identified because she was someone who could grow from this opportunity. Her current workload could be rearranged with others to afford her the time availability. She had the potential to succeed.
    What to delegate?
    Barry identified those projects that he could assign to Elsabie that he did not need to be directly involved in.
    How to delegate?
    The following process of situational coaching took place between Barry and Elsabie:
    Directing: Structure, close supervision, clarification of understanding
    Delegatee has low competence, high motivation
    Barry and Elsabie had an initial meeting in which the specific responsibilities Elsabie would be handling were detailed. The success parameters were also identified. In other words it was clearly outlined what the project would look like when it was completed and successful.
    Barry and Elsabie initially met daily and on occasion bi-daily to discuss her progress. For these meetings Elsabie was required to bring five questions. The questions had to be written and there had to be five. This was hard for Elsabie at first but Barry refused to engage with her until she had got into this habit. In this way only the issues relevant to where Elsabie was at her stage of development and knowledge required were addressed.
    Barry dealt with these questions mainly by asking further questions! He also asked questions that made her aware of possible issues she may not have thought of that she needed to address at that stage. Barry’s meetings with Elsabie were an investment of his time but he was motivated by the longer term value of Elsabie’s role in managing projects in the company. They also were innovative in finding time, sometimes talking while doing gym at the office gym, or telephonically, or via email.
    Coaching: Some directing and some supporting
    Delegatee has some competence, some motivation
    Barry and Elsabie continued the method of using Elsabie’s five questions to guide their discussions. The number of their meetings decreased however, over the months, as she gained confidence and competence. They began to meet two or three times a week rather than daily.
    Supporting: Listening and giving positive feedback
    Delegatee has increased competence, sometimes lacks confidence
    Elsabie began running with the projects. She began moving in the direction of the success parameters set for her. She increased her value to the company step by step. She would still occasionally phone Barry and ask some questions. He would occasionally check in to see how she was doing.
    Delegating: Task is being handled on a day to day basis by delegatee
    Delegatee has high competence and high motivation.
    Over a period of four to five years Elsabie increased her earnings from R60 000 pa to R280 000 pa. She was promoted to the position of Senior Project Manager. Every now and again she will give Barry call as he remains a resource for her, but this happens rarely.
    Read more on delegation
    Read a coaching session

    Case study from Barry du Plessis

    Why delegation?

    Barry’s workload increased to the point that he could no longer manage the number of projects. As a team they identified the need to delegate.

    Which individual career would benefit the most?

    Elsabie was identified as the person to whom they would entrust a number of projects. She was presently functioning as a PA. She had experience in customer care but had no formal project planning knowledge or experience.

    She was identified because she was someone who could grow from this opportunity. Her current workload could be rearranged with others to afford her the time availability. She had the potential to succeed.

    What to delegate?

    Barry identified those projects that he could assign to Elsabie that he did not need to be directly involved in.

    How to delegate?

    The following process of situational coaching took place between Barry and Elsabie:

    Directing: Structure, close supervision, clarification of understanding

    Delegatee has low competence, high motivation

    Barry and Elsabie had an initial meeting in which the specific responsibilities Elsabie would be handling were detailed. The success parameters were also identified. In other words it was clearly outlined what the project would look like when it was completed and successful.

    Barry and Elsabie initially met daily and on occasion bi-daily to discuss her progress. For these meetings Elsabie was required to bring five questions. The questions had to be written and there had to be five. This was hard for Elsabie at first but Barry refused to engage with her until she had got into this habit. In this way only the issues relevant to where Elsabie was at her stage of development and knowledge required were addressed.

    Barry dealt with these questions mainly by asking further questions! He also asked questions that made her aware of possible issues she may not have thought of that she needed to address at that stage. Barry’s meetings with Elsabie were an investment of his time but he was motivated by the longer term value of Elsabie’s role in managing projects in the company. They also were innovative in finding time, sometimes talking while doing gym at the office gym, or telephonically, or via email.

    Coaching: Some directing and some supporting

    Delegatee has some competence, some motivation

    Barry and Elsabie continued the method of using Elsabie’s five questions to guide their discussions. The number of their meetings decreased however, over the months, as she gained confidence and competence. They began to meet two or three times a week rather than daily.

    Supporting: Listening and giving positive feedback

    Delegatee has increased competence, sometimes lacks confidence

    Elsabie began running with the projects. She began moving in the direction of the success parameters set for her. She increased her value to the company step by step. She would still occasionally phone Barry and ask some questions. He would occasionally check in to see how she was doing.

    Delegating: Task is being handled on a day to day basis by delegatee

    Delegatee has high competence and high motivation

    Over a period of four to five years Elsabie increased her earnings from R60 000 pa to R280 000 pa. She was promoted to the position of Senior Project Manager. Every now and again she will give Barry call as he remains a resource for her, but this happens rarely.

    Read more on delegation

    Read a coaching session

    The four stages toward building relationship with your customers
    Chapter 11
    p.1
    Yes, I think I’m growing in my job. I know more about what I do and it even feels as if I achieve more. Nowadays customers and colleagues even remark on how much I mean and contribute to the company. It really feels as if I am growing into something…but what?
    Sounds to me as if you have grown in terms of Holdens Four-Stage Model of sales proficiency from stage 1 into stage 2.
    The Holden Four-Stage Model applies to all jobs where your actions are directed at a customer, which can range from a supplier to a person from a different department or business unit, including administrative personnel.
    The inherent focus of the model, when used as a tool, is to increase the value to everybody. Coaches would be well advised to apply this to all job roles. Holden distinguishes between four different stages of proficiency and explore the impact of various factors on how people operate in these stages.
    Sounds great, but what are these stages and factors?
    Lets start by exploring the diagram below.
    Take note that Holden distinguishes between Four Stages of proficiency,
    ranging from:
    “Emerging Sales Person” to “Competitive sales consultant” (Horizontal axis)
    Four factors impacting on each stage (Vertical axis)
    Stage Emerging Salesperson Salesperson Contributing Salesperson Contributing Sales Consultant
    Intent Tone considered To make sale Repeat business To dominate an account
    Focus Product Customer Competition Customer’s market
    Relationship Casual (Social) Trust (Deliver) Mutualism Symbolic
    Value Products option Application solution Business issues Strategic direction
    Take a look at the factors on the next page that impact on the different stages of proficiency.

    The four stages toward building relationship with your customers

    Chapter 11 p.1

    w&t_question

    I Answer

    Yes, I think I’m growing in my job. I know more about what I do and it even feels as if I achieve more. Nowadays customers and colleagues even remark on how much I mean and contribute to the company. It really feels as if I am growing into something…but what?

    w&t_exclamation

    I Answer

    Sounds to me as if you have grown in terms of Holden’s Four-Stage Model of sales proficiency from stage 1 into stage 2.

    The Holden Four-Stage Model applies to all jobs where your actions are directed at a customer, which can range from a supplier to a person from a different department or business unit, including administrative personnel.

    The inherent focus of the model, when used as a tool, is to increase the value to everybody. Coaches would be well advised to apply this to all job roles. Holden distinguishes between four different stages of proficiency and explore the impact of various factors on how people operate in these stages.

    w&t_question

    I Ask

    Sounds great, but what are these stages and factors?

    Lets start by exploring the diagram below.

    Take note that Holden distinguishes between Four Stages of proficiency, ranging from:

    • “Emerging Sales Person” to “Competitive sales consultant” (Horizontal axis)
    • Four factors impacting on each stage (Vertical axis)
    Stage Emerging Salesperson Salesperson Contributing Salesperson Contributing Sales Consultant
    Intent Tone considered To make sale Repeat business To dominate an account
    Focus Product Customer Competition Customer’s market
    Relationship Casual (Social) Trust (Deliver) Mutualism Symbolic
    Value Products option Application solution Business issues Strategic direction
    Competitive approach to win-win negotiation
    Chapter 6
    p.7
    OK, now when do I use the competitive approach to Win-Win negotiations.
    In some cases business transactions do not necessarily involve exploring new options but focus on bargaining in pursuit of the best value for both parties.
    In such cases doing your pre-negotiation preparation thoroughly and following the guidelines below, will help you reach Win-Win agreements.
    Win-Win Agreement
    1. Begin with a plausible demand or offer
    2. Frame the outcome of the demand or offer in positive terms
    3. Keep issues and concessions linked
    4. Be patient
    5. Know when to quit, have your BATNA ready
    6. Use impasse breakers
    Try an “If-then” agreement
    Get the group focussed on a common goal
    Invite criticism of ideas instead of defending them
    Make a “Last and Final offer”
    7. Use a deadline
    8. Make small concessions gradually
    9. Establish an appeal to legitimacy
    Don’t leave before all agreements and concessions are on pape

    Competitive approach to win-win negotiation

    Chapter 6 p.7

    w&t_question

    I Ask

    OK, now when do I use the competitive approach to Win-Win negotiations?

    w&t_exclamation

    I Answer

    In some cases business transactions do not necessarily involve exploring new options but focus on bargaining in pursuit of the best value for both parties.

    In such cases doing your pre-negotiation preparation thoroughly and following the guidelines below, will help you reach Win-Win agreements.

    Win-Win Agreement

    1. Start with a plausible demand or offer
    2. Frame the outcome of the demand or offer in positive terms
    3. Keep issues and concessions linked
    4. Be patient
    5. Know when to quit, have your BATNA (fall-back position or best alternative to a negotiated agreement) ready
    6. Use impasse breakers
      • Try an “If-then” agreement
      • Invite criticism of ideas instead of defending them
      • Make a “Last and Final offer”
    7. Use a deadline
    8. Make small concessions gradually
    9. Establish an appeal to legitimacy

    w&t_ch6_v_competitive_approach_to_win_win_negotiation

    w&t_elephant

    I Advise

    Don’t leave before all agreements and concessions are on paper.

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