Ownership
2.3 Organisation LayersTo be an owner of an organisation is to hold the pen that writes its story; make every chapter one of progress, innovation, and positive impact
What is ownership?
Definition
The individuals or juridical entities having the legal accountability for the organisation
Purpose
To set the direction and the manor of acting for the organisation
Owners have the legal accountability for the organisation
The owners are the individual, group or juridical party that has the legal accountability for the organisation. As there are many forms of ownership, The setup can vary, but for example: for a private company, it is the shareholders represented by the Shareholders Board. For government agencies, it is the government itself.
One thing they all have in common is the authority to assign the single individual with the accountability for the organisations operations and execute the owners will. This can be the position of CEO, President, Minister, Director or equivalent role.
Owners set the direction of the organisation
Since the accountability for the operation is delegated, the main responsibility of the owners is to set the direction for the company. This cannot be delegated and is integrated into the role as owner. The direction is typically expressed as combination of:
- Long term ambition (Vision)
- The means to achieve ambition (Mission, Business Idea, Strategy)
- The manner of which the ambition should be achieved (Values, Code of conduct)
These typical assets together establishes a direction, a means of moving forward and the manor for how the progress should be mad. In addition to these assets, there may exist other complimentary assets to clarify the direction. These can be, but are not limited to:
- Rules of attestation
- CEO directive or instruction
- Financial model
All these assets are different perspectives that together describes the direction for the organisation.
Next Step
Next, read more about the Leadership layer…