Residual Claimants

By Stephen Deason

The owner is paid last.

Every wage, invoice, and loan payment comes out first. The owner keeps what remains and carries the loss when nothing is left. A company can develop an excellent manager without requiring that manager to make a decision from the owner’s position. When ownership authority finally arrives, the manager is doing that job for the first time.

Residual Claimants is a practical system for developing people who can function on the residual side of the ownership line. The book starts with seeing the work: hiring, standards, supervision, and coordination. The lessons then turn to putting judgment into action through difficult conversations and systems that hold without the owner. The final lessons follow the move from operator to principal, covering cash and profit, risk, cost, delegation, equity, and the decisions that reach the person paid last.

Each lesson states the question the lesson answers, the conditions under which the rule holds, the rule itself, and where the rule stops working. Alice appears throughout the lessons and learns mostly by getting things wrong first.

Written for owners of small and midsize companies, managers who intend to become owners, and owners developing somebody else to carry the claim.

Dimensions

7 × 10 inches

Forthcoming. Amazon link coming soon.

Read the opening chapters (PDF)

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