Parenting in complex structures - Parenting challenges in interdependent structures

5 important questions on Parenting in complex structures - Parenting challenges in interdependent structures

What are the 4 parenting challenges in interdependent structures?

1 They retain or share with other units 'more responsibilities'
2 They are more involved in 'guiding coordination' between units
3 They are less able to exercise 'control' through unit-specific, objective, output-based measures of performance
4 They need to pay more attention to the design and working of the organization
Elfring added:
-Integrated strategy and policies and constraints of units
- Hands-on parenting requires experience in product-market and implications for grouping of activities

What is meant with 'more responsibilities' as a challenge for parenting?

That it's essential for the parent to exercise certain responsibilities in order for the company to function: the minimum parenting role is more extensive (uitgebreid). If the parent is less committed to the autonomy of self-contained SBU's, it may perceive and be willing to pursue a wider range of value-added opportunities.

With more interdependencies between operating units, the parent also needs to play a more active role in guiding coordination and networking between units. What for role has the parent in interdependent structures?

It has a minimum role in establishing the conditions to make self-working networks works. They must be more involved in adding value by facilitating difficult links between units.
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All corporate parents need to monitor how well their chosen organization designs are working. But in interdependent structures there is more need for constant fine-tuning of the design to make sure that it is achieving the purpose for which it was established (f.e. should a simpler structure be considered?). What is the minimum role of the corporate parents?

They must insure that that the organization design is not leading to unworkable conflicts and confusion. Better: the parent can add substantial value by creating a design in which the interdependencies allow the whole to be more worth than the sum of the parts.

How can the parents manage the 4 challenges in interdependent structures?

The parent is integral to the working of the corporate structure. It must carry out a wider range of minimum responsibilities. It needs more knowledge of the units, and a greater feel for their operations and critical succes factors.

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