New Corporate Models

[ward]

I have wanted to open the discussion of new corporate models here for some time. Those who have read through the subcontractor thread will recall the problem that the subcontractor model can solve, namely, improve the autonomy of the climber and provide a next rung up beyond lead climber at a tree service. It can also be good for tree services in many ways, too, although can be problematic for a host of reasons. I think it is worth considering models of employee ownership as a remedy to the defects of the traditional arrangement.
I believe the Baumpartner model has something already going for it. (Baumpartner is a company in Basel, Switzerland). Although I am not overly familiar with exactly how it works, I understand that (in broad strokes) several owners each book their own jobs through the service with their own chosen friends, but pay a fee to the service for the equipment, etc. Each takes the profits for their own work, but pays into a common fund for shop rental, tools, etc. (common costs). Ownership is both by election and by "buying in", but confers broad powers.

What are others thinking? Is this idea un-American? What?

 

[evo]

sounds like a Co-op.... interesting

 

[treehumper]

Hmmmm... without all the details of how the organization is structured from top to bottom it's hard to say if it can translate to the US or any other market. Issues of liability and insurance come into this. What about WC coverage for employees? If there are no "employees" how will the client be protected from liability for the "guest" on their property who sustains and injury? Will this create improved buying power for the individuals? How will it be viewed by the IRS?

In my estimation we need a model that allows for fair compensation to employees and reasonable profits for companies without compromising safety and the adherence to existing regulation.

 

[ward]

I am aware that the traditional business ownership model works well for the owner but has some limitations for the worker. This deficiency is seen in defections in their thirties--either to become subcontractors or tree services. I am thinking of a new model in which ownership is shared and common costs can be pooled, but hard work is individually rewarded. A stake in ownership adds a new level of engagement and motivation. But how much ownership? Perhaps a co-op level of ownership is too watered down. Ownership share must be meaningful to drive motivation. With mutual ownership, mutual accountability. ...

 

[treehumper]

Does it? Davey Tree is 100% employee owned. The 4th largest employee owned company in the US. This is employees first but having stock in the company thus making them owners. But have a look at www.nceo.org. This might give you some insight into the concepts.

 

[frashdog]

Just heard a vpr (Vermont public radio) on b-corps (benefit) and co-op biz. Sounds like the way to go... Once your biz is rolling sustainably. Might be difficult during the start up phase due to the traditional and/or unsustainable competition out there that many customers lump you into by default. Innovate, disrupt then dominate the local model.