Hello folks,
I posted about a month ago introducing the idea of a “Strategic Union”, a cooperative management model that separates administrative oversight from operational management, hopefully leading to healthier and more productive workplaces for everyone involved. To implement this, I’ve started developing Enterprise Resource Planning software specifically for this type of company, and a small team is forming, but we need more contributors.
The model and software are intended to enable the growth of these cooperatives into large, problem-solving organizations interested in complex, integrated projects such as major bridges, sustainable residential skyscrapers, or high-volume manufacturing lines, to name a few. It should also work for a variety of other applications such as large retail chains and restaurants.
The idea is anchored in the philosophy of Hierarchy by Consent, which examines the role of hierarchies in society and whether we really want to get rid of them or instead bring them under democratic control to the benefit of all.
- Hierarchy by Consent argues that hierarchies are necessary for complex projects involving large teams, but they must be constrained by a democratically elected body which prevents the hierarchy from reinforcing its own control structures (anacyclosis).
- The paper explains the Strategic Union management model and how it maintains stability and social equity without sacrificing productivity.
- The paper concludes by calling for the creation of an alliance of these companies to build counterpower.
We’ve all had a bad boss, I get it. But I’ve also had good bosses, who take the stress of the job in stride to help the team coordinate their efforts. In this model, the entire team participates in mutual performance reviews designed to provide constructive peer-feedback and, if desired, can be used to adjust hourly rates within an agreed upon pay band. Mediation will also be available, with escalation to an anonymous vote if needed.
Read Hierarchy by Consent.
Apoidea Cooperative Management Suite: I started a repository on Codeberg for Enterprise Resource Planning software to manage these organizations, and we’re looking for contributors. So far I have had a small contribution from a part-timer, and I’m hoping some of you might take interest as well. I’m particularly hopeful to find someone else to realize their own vision on the front-end. Of course, the more folks looking at this, the better.
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Tech stack: Docker (soon Podman), postgres, nginx, SQLAlchemy, gunicorn, jinja2, Flask, Alembic, and Redis. Frappe Gantt will be necesarry for the project planning system on the front-end.
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The eventual goal is to host it on a server and run a test case with “points” instead of money.
Programmer or not, we still need your help! Our Community on Matrix is small but growing, and we’d love to have you. Send me a PM if you’re new to Matrix.
I’ll be around to answer your questions and consider your critiques, as that is what is really needed to get this project off the ground. I’m going to include some of my own questions and FAQs as comments, so please forgive the clutter.
Thank you.
- How would you capitalize?
There are two primary ways to raise funds for startup:
1. Pre-incorporation dues: During the “club phase,” owners will contribute funds periodically to establish the governance and initial systems. Volunteer efforts only during the club phase.
2. Post-incorporation labor contracts: Similar to a hiring agency, the CEO can negotiate labor contracts with other businesses with the goal of hiring out owner labor to bring in initial capital. The owner gets a paycheck and the margin goes toward capitalization of the business plan, a win/win. The percentage of the labor contract value that is paid to the owners doing the labor should be fixed by vote, and all bonus pay must be suspended while labor contracts are active since they are a funding mechanism, not a business model.
This plan is helpful because it no longer requires workers to have the same employer just to organize a union, you can simply create your corporation independently and with whomever you like. Additionally, the larger and more specialized your co-op is, the greater your bargaining power will be.
The startup sequence becomes:
Server Setup >> Recruitment >> Elections >> Dues >> Incorporation (C-Corp) >> Labor Contracts >> Business Plan Implementation
Read the Master Staffing Agreement template.
- How would you actually become a business?
Integral to this plan is the Articles of Incorporation template that is intended to be filed with the co-op’s state as the “constitution” defining what the company is and why it exists. In the AoI I specify equity controls and governance, as well as additional protections from oligarchical takeovers. Here’s an outline:
- Anti-Oligarchy: Altruistic mission statement, individual contributors only, limits on stock purchases, no speculation
- Democratic Governance: General Conference elects officers to the Board of Directors
- Opposing Incentives: President’s bonus based on payroll/equity, CEO’s bonus based on business surplus
This is intended to be used to create a C-Corporation in the US, and it must be reviewed by a licensed lawyer in your state before it can be used. The ideas, however, are universally applicable.
Read the Articles of Incorporation template.
- How would you initially get started?
The first step for a group that wants to organize will be to get the ERP software running.
For maximum privacy, the group could obtain a desktop computer to run the software on initially with the intention to move to server hardware after capitalization. A technically inclined member of the group would reprogram the computer to turn it into the ERP server and then host it through a Dynamic DNS service.
Alternatively, they could use a hosting service and pay a monthly fee.
Once the software is running with logins established, the group will be able to start writing documents, electing officers, and capitalizing.
Do you prefer the idea of new owners gaining their voting rights gradually during the “Provisional Period” (1 share / 1 vote) or should new owners have full voting rights on day 1 (1 person / 1 vote)?