Design thinking can be applied to many things other than products and services. One of the things we design are organizations and how we own them. Are current models of ownership fit for purpose? What are the goals

1. 1 I Ibbaka © 2019
Redesigning ownership
A test case from Vancouver
September 17, 2019
steven@ibbaka.com
Intersections 2019
Lisbon Portugal

2. Current models of company ownership are failing us. They have contributed to
massive wealth inequalities, they are damaging the urban environment and
environmental health, and they are failing to deliver the kinds of careers people
are looking for as working patterns change. How can we change this?
At the Vancouver BC firm Ibbaka a model of collaborative ownership is being
explored. Having operated under this model for three years, one of the
founders and designers of the model is ready to share the lessons learned.
Other emerging ownership models from the co-op space and from crowd
funding will also be explored. A design thinking based approach to rethinking
company ownership will be proposed.
2 I Ibbaka © 2019
Context

3. The Silicon Valley model for economic innovation is
broken.
3 I Ibbaka © 2019

4. The Silicon Valley model for economic innovation is
broken.
It contributes to
• Homelessness
• Concentration of wealth
• Externalization of social costs, privatization of profits
4 I Ibbaka © 2019

5. 5 I Ibbaka © 2018
Homelessness is surging in San Francisco

6. 6 I Ibbaka © 2018
Homelessness is surging in San Francisco

7. 7 I Ibbaka © 2018
Other cities like Vancouver BC are also struggling

8. 8 I Ibbaka © 2018
Other cities like Vancouver BC are also struggling

9. 9 I Ibbaka © 2018
Other countries
(World Bank Data)
United States (2016) 42
China (2015) 39
Portugal (2015) 36
India (2011) 36
Canada (2013) 34
Germany (2015) 32
Japan (2008) 32
Inequality is getting worse

10. 10 I Ibbaka © 2019
Possible Futures
The New
Aristocracy
Shared
Success
Stagnation and
Segregation
Shared
Poverty
Wealth DistributedWealth Concentrated
Wealthier
Poorer

11. 11 I Ibbaka © 2019
Possible Futures
The New
Aristocracy
Shared
Success
Stagnation and
Segregation
Shared
Poverty
Wealth DistributedWealth Concentrated
Wealthier
Poorer

12. Why do we have companies?
12 I Ibbaka © 2019

13. Why do we have companies?
Firms are a response to the high cost of using markets. It is often
cheaper to direct tasks by fiat than to negotiate and enforce
separate contracts for every last transaction. Such “exchange costs”
are low in markets for uniform goods, wrote Coase, but are high in
other instances.
Ronald Coase
13 I Ibbaka © 2019

14. Understand
Differentiation
Build
Capability
Communicate
Value
Evolve
Capture
Value
Company Founder
(Ibbaka + TeamFit)
Affiliated companies now
being combined as Ibbaka to help
Individuals and organizations
Reach their full potential
14 I Ibbaka © 2019
My Background

15. Company Founder
(Ibbaka + TeamFit)
15 I Ibbaka © 2019
My Background
+

16. Company Founder
(Ibbaka + TeamFit)
Angel Investor
16 I Ibbaka © 2019
My Background

17. Company Founder
(Ibbaka + TeamFit)
Angel Investor
Company Advisor
17 I Ibbaka © 2019
My Background

18. Founded 2016 - Goal was to provide a platform to explore ideas that enchanted the
six partners
David Botta, Ph.D. – Art & Math Steven Forth – Business & Innovation
N-Q Chang – Design Lee Iverson, Ph.D. – Collaboration, AI, Semantic Engineering
Karen Chiang – Business & Innovation Warren Taylor – Coding
18 I Ibbaka © 2019

19. 20 I Ibbaka © 2019
Why do we really have companies?
Company
• Work together (pool resources)
• Share risk
• Attract capital

20. 21 I Ibbaka © 2019
Why do we really have companies?
Company
• Work together (pool resources)
• Share risk
• Attract capital
Investors
• Deploy capital to get a risk
adjusted return on investment
• Support an industry, sector, or
team

21. 22 I Ibbaka © 2019
Why do we really have companies?
Investors
• Deploy capital to get a risk
adjusted return on investment
• Support an industry, sector, or
team
Society
Provide jobs
Support Communities
Deliver goods and services
Drive innovation

22. Design Thinking
The application of patterns and processes commonly used in design
disciplines (architecture, experience design, service design, learning
design, software design, etc.) to broader problem sets.
23 I Ibbaka © 2019

23. Design Thinking Process
24 I Ibbaka © 2019

24. 25 I Ibbaka © 2018
Empathize
Built mind maps of our career goals
Looked for patterns on how they connect

25. 26 I Ibbaka © 2018
Define
Flexible work environment
Develop and implement new ideas
Work that will make a difference
Have a social impact
Create wealth

26. 27 I Ibbaka © 2018
Ideate
Organization Patterns
Loose Collection of Collaborators
Non Profit
Co-ops
- Worker owned
- Supplier owned
- Consumer (buyer owned)
Formal Partnership
Private Limited Liability Corporation
Private Limited Liability Corporation with
Investors
Business Unit of Larger Corporation
Publicly Traded Corporation

27. 28 I Ibbaka © 2018
Ideate
Formal
Partnership
Private
Limited Liability
Corporation
• Shared
Ownership
• Freedom of
Association
• Freedom to work

28. 29 I Ibbaka © 2018
Ideate
Formal
Partnership
Private
Limited Liability
Corporation
• Shared
Ownership
• Freedom of
Association
• Freedom to work
Wealth Creation
Choose who to work with
Choose projects with social impact

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Prototype
Run for three years and reassess
See if we can build a sustainable business
See if the business is a place we want to work
Can we have an impact?

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Prototype
• One non-transferable share per person
• Anyone can invest up to 50% of their time
into approved projects
• Major decisions by consensus
• Can take up to two years off without pay
• Agreed formula for measuring value

31. 32 I Ibbaka © 2018
Test
• Revenue growth running at 3X PA over three
years, profitable
• Developed IP on use of social network analysis
for market segmentation and application of
design patterns to pricing design
• Projects with Non Profits contributed to social
good

32. 33 I Ibbaka © 2018
What worked
As a Team
• Built deep trust
• Able to support varying life
styles and life stages
• Developed IP
• Created wealth for partners

33. 34 I Ibbaka © 2018
What did not work
Company
• Work together (pool resources)
• Share risk
• Attract capital
W
As a Team
• Built deep trust
• Able to support varying
lifestyles and life stages
• Developed IP
• Created wealth for partners
For the Team
• Hard to bring in new people as
partners
• Different levels of risk tolerance
• Different needs on when to
realize wealth
• Complex (slow) decision
making

34. Understand
Differentiation
Build
Capability
Communicate
Value
Capture
Value
Evolve
35 I Ibbaka © 2018
What is nextW
• Combining with TeamFit (a
company that Ibbaka and its
partners are the majority
shareholders)
• Provide equity to all people
contributing
• Provide a path to liquidity to
people who want to exit
• Develop a joint value
proposition for strategic
innovation
• Raise money (but in what
form?)

35. 37 I Ibbaka © 2018
The key questions for the innovation economy
1. How do we finance innovation? Are VC and PE the only
or the best way?
2. How do we balance risk and reward? For people who
work in early stage innovation, for investors, for the
public
3. How do we ensure that costs are not socialized while
profits are privatized? Look at the impact of the
‘sharing economy’

36. 38
From Opportunity to Execution
We understand innovation because we live it
Our passion is to help individuals and
organizations realize their full potential, in the
market and with their people
We understand how market opportunities and
people combine to
Deliver sustainable growth
Twitter LinkedInWebsite
Steven Forth
Managing Partner
steven@ibbaka.com
+1 604 763 7397
Karen Chiang
Managing Partner
karen@ibbaka.com
+1 778 628 4085