Colleague

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.

Mentoring

Mentoring

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The difference between coaching, mentoring and counseling.

(See also: key result areas)

This page explains coaching, mentoring and counseling and how to apply them in your work and personal life. We do this in a question and answer style of writing. Starting with the question, “What does mentoring mean?”

coaching counseling mentoring

Ask

Do you know what my team player skills leader said to me yesterday? He wants me to act as a mentor to one of my junior colleagues!

But how do I go about it? I’m not even sure if I know what mentoring means.

coaching mentoring

Answer

Mentoring, coaching and counseling are related concepts.

All three deal with a process of helping another person to grow and develop.

In a work environment a mentor, coach or counselor is usually a person who is experienced in the area in which the competencies of a colleague still need development.

The diagram below illustrates the three concepts and how they differ in focus.

mentoring coaching

Mentoring Coaching

Thank you to: Elizabeth Hayes

responsibilities of a mentor

Ask

Yes, but can you tell me what those same core skills are?

mentoring styles

Answer

It is essential that mentors, coaches and counselors have the following skills:

mentorship pictures

Mentorship pictured

mentoring and coaching

Explain

To be able to maximize the growth of the individual being mentored and add value to the relationship, the mentoring skills and style of the mentor should be developed and adapted to suit the developmental level and need of the individual being mentored.

mentorship process

Ask

Wait a minute, there’s still a lot I need to know!

What does it mean to adapt your mentoring style to the developmental level of the individual being mentored?

Mentorship styles (S) in relation to the Developmental level (D) of the individual being mentored

mentorship

Mentorship Process

coaching mentoring e counseling

Answer

According to Hersey and Blanchard, four developmental levels of the individual being mentored can be distinguished, ranging from D1 to D4 (as they call it).

At each level the individual being mentored needs a different monitoring style to maximize growth.

They have further identified four mentoring styles (S1 to S4) which differ from each other in terms of the amount of supportive and directive behavior each encompasses.

The diagram above illustrates what each developmental level entails, as well as the appropriate mentoring style that will facilitate the individual being mentored’s growth to the next level.

differences between coaching and mentoring

Ask

OK, so that means that my colleague , who has high commitment and low competence, is on developmental level D1 and he needs a Directing Mentoring Style. S1: a lot of structure, control and supervision.

coaching y mentoring

Advise

Remember to adapt your mentoring style as your individual being mentored moves to another development level.

mentor ship

Explain

The mentoringprocess can be regarded as the growth of the individual being mentored’s self-concept through goal directed behavior. As indicated in the diagram below, the individual being mentored is guided from one goal (G1) to a more complex one (G2). The sense of achievement leads to the enhancement of the individual being mentored’s self-concept, or sense of self-worth (S-C.1 to S-C.2)

After achieving the goal, it is vital that the mentor assists the individual being mentored to REFLECT on the achievement.

Through reflection (which implies honest feedback) self-analysis and self-evaluation, growth of the individual being mentored’s self-concept is facilitated.

mentorship model

Mentorship model

mentoring y coaching

Advise

The Performance Management Process is a very effective vehicle for setting and reviewing goals.