The strategy for planning a company’s structure and shares holding focuses on enhancing operational efficiency and managing stakeholders effectively. Initially, it involves defining the company structure by identifying essential departments, establishing hierarchies, and outlining roles and responsibilities. For example, deciding whether the company should be an LLC or a Corporation is crucial. Organizational charts, clear job descriptions, and internal communication protocols further solidify this foundation.
Next, creating a shares holding structure is vital for aligning with company goals. This includes issuing shares, consulting with legal advisors, and defining shareholder rights. For instance, establishing a shareholder agreement and managing a comprehensive register ensures clarity and compliance.
Strengthening corporate governance is another core strategy, involving the formulation of a diverse board of directors and implementing policies to govern operations. Regular performance evaluations and sustainability practices are also crucial. An audit committee overseeing financial aspects and adapting policies to market changes exemplifies robust governance.
The strategies
⛳️ Strategy 1: Define company structure
- Identify and define the core departments required for company operations
- Establish the hierarchy within each department for clear reporting lines
- Outline roles and responsibilities for each department and position
- Decide on legal entity type suitable for the company (e.g., LLC, Corporation)
- Develop an organisational chart to visualise the company structure
- Determine key positions and recruit individuals with required expertise
- Create job descriptions and KPIs for each position
- Establish an internal communication protocol to enhance inter-departmental collaboration
- Set up regular meetings and progress reviews
- Implement a feedback system for continuous improvement
⛳️ Strategy 2: Create a shares holding structure
- Determine total number of shares to be issued
- Consult with a legal advisor to comply with regulatory requirements
- Identify potential investors or partners and their interests
- Define shareholders’ rights and responsibilities
- Create a shareholder agreement outlining the terms of shareholding
- Establish a share distribution strategy to align with company goals
- Record and maintain a comprehensive shareholder register
- Conduct an initial valuation of company shares
- Develop a strategy for future equity financing
- Review and update the shareholding structure periodically
⛳️ Strategy 3: Strengthen corporate governance
- Formulate a board of directors equipped with diverse expertise
- Develop policies and procedures to govern the company’s operations
- Implement a risk management framework to anticipate and mitigate business risks
- Promote ethical standards and transparency in all dealings
- Schedule regular board meetings to review company performance
- Establish an audit committee to oversee financial and operational components
- Develop a performance evaluation system for board members
- Encourage stakeholder engagement through regular communications
- Implement sustainability practices to enhance corporate responsibility
- Adapt corporate policies in response to legal and market changes
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
