Parenting in complex structures - Parent functioning

4 important questions on Parenting in complex structures - Parent functioning

Out of what consists the corporate parent?

Senior line managers (f.e. chief executive, chief operating officer, division heads) supported by staff functions. 

When the size of the company doubles, the corporate staff decreases with 50%. Which 3 purposes has focusing on the minimum corporate staff?

1 It show how small a truly lean headquarter can be
2 The discipline of reducing minimum corporate parent staff numbers reduces unintended value destruction
3 Minimum staff provides a good baseline for designing the corporate center.

The purpose of parent functions is to develop specialist expertise in activities relevant to minimum parenting tasks/propositions. Describe the role of parent functions:

1 Assist senior parent managers in discharging obligatory compliance and due diligence tasks, and in influencing and adding value to operating units.
2 They report to senior line managers in the parent, and should not act without their support/authority.
3 Parent functions should work closely together as part of the parent management team.
4 Accountable for contributing of effectiveness/adding value of the partner (this if often not measured)
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Sometimes it's possible that a specific business units take the lead on behalf of the parent (f.e. a business unit is responsible to help other units with using a kind of technology). At such a moment these units can act as resource or shared service providers, or may take on added-value parenting tasks that would otherwise have been performed by parenting functions. What is important in this situation?

When they act as core resource, shared resource providers or added value parenting tasks. It is important that the responsibilities and accountabilities are clear defined. 

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