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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.

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.