Strategic structures for aligning Cooperation_the Enterprise.pdf
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The document discusses the concept of an 'enterprise' as a structural model for aligning multiple organizations towards a common purpose under a central authority, emphasizing the importance of governance and strategic alignment. It contrasts enterprise models with other forms of cooperation, such as coalitions, federations, and consortia, each characterized by different objectives and commitments. The text also highlights the significance of accurately understanding these distinctions to avoid organizational mismatches.
Strategic structures for aligning Cooperation_the Enterprise.pdf
- 1. Strategic structures for aligning Cooperation Enterprise and non-enterprise configurations
- 2. Enterprise or Not An “enterprise” can have business outcomes as its common purpose but it is not necessarily business that characterizes an enterprise. In fact, to most clearly define an “enterprise”, it is also necessary to know what it is NOT. In that regard, the fundamental distinction has nothing to do with “systems”, nor “complexity”, nor “scale”. An enterprise model of organization is a strategic choice for pursuit of a purpose. But its basic differentiation from other models stems from the role of a central authority. Supervisory authority aligns the tactics of multiple parties under centrally declared governance, priorities, and goals. Without this, the organizational configuration is not an enterprise.
- 3. Enterprise Coordination for Purpose • An enterprise is a structural model for coordinating multiple organizations to a common purpose under a single supervisory management authority. • An enterprise is characterized by its creation, sustainability, and portfolio of opportunity. • The role of the authority over the included parties is to direct and leverage combinations of their otherwise independent autonomy, production and contribution.
- 4. goal Enterprise alignment of a co-operating party Stripped of deep-dive VUCA anxieties about “performance”, the discussion of using the right model of cooperation is about understanding what is reliable in the way procedures become “progress”. In the enterprise model, authority focuses on establishing balanced coherence through governance, prioritization, and goal- setting of participants. Leadership focuses on making those things into enablers of the strategy’s primary objective (opportunity). Finally, authority is not necessarily dictated; communication can cultivate it. © 2023 malcolm ryder / archestra research
- 5. Other co-operative models (non-enterprise) Other models of multi-party co-operation are coalitions, consortia, and federation. Each has a distinctive strategic objective and a distinct kind of commitment to cooperation. a Coalition, like an alliance, is defined by a common mission of the parties under their respective independent management. It expects to be situationally effective. A Federation, like a community, coheres primarily with contracts for mutual support among parties. It expects to generate synergy. a Consortium, like a collaboration, comes together to share the division of responsibilities for a specified set of multiple requirements (which can be resources or actions). It expects to offer capacity.
- 6. Temporary on demand Permanent in environment Involuntary per objective Coalition Mission-driven alliance Effectiveness For Operation Enterprise Authority-driven institution Tactics For Opportunity Voluntary per agreement Consortium Challenge-driven collaboration Capacity For Support Federation Interests-driven community Support For Synergy Strategic structures for aligning Co-operation ORGANIZATIONAL POSTURE ORGANIZATIONAL PRESENCE Business-speak too often adopts terminology that creates powerful expectations based on unexamined assumptions that turn out to be unfounded or simply false. Recognizing the actual distinctions between types of cooperation is important, to avoid adopting organizational structures that fundamentally mismatch the prevailing need. © 2023 malcolm ryder / archestra research