New Business Models:

Business Enablers

Coherence

The Glue that Binds the Various Pieces of the Firm Together, Enabling Then to Act as One

Source: The Centerless Corporation, Bruce A.Pasternack and Albert. J. Viscio. Executive summary by Vadim Kotelnikov

"Coherence is what makes a corporation greater than the sum of it parts." ~ Bruce A.Pasternack and Albert. J. Viscio  

Coherence as a Key Business Enabler

  • Energizes your company and generates fresh vitality

  • Helps build on on more flexible configurations of management processes, systems, and people

  • Facilitates the initiative and drive that are required of leading companies

  • Deemphasizes a rigid organizational structure; enables your organization to become quick, nimble, and responsive

Coherence as a Key for the Organizational Integration

Coherence as a Compass for Decision-Making

  • Decisions can be more decentralized and of better quality when everyone understands where company is headed.

  • Decisions are better when everyone has access to the right knowledge.

  • Decisions improve when the right people are working on the problem.

Keys to Coherence

  1. To establish and communicate the purpose

  2. To design people and processes to fit

Key Organizing Principles

which help define some of the interrelationships among the parts

  1. Leaner organization: reduced levels of hierarchies, minimized number of bureaucratic regulations, and focused to realize synergies

  2. Objective orientation: clearly defined objective orientation of each individual and organizational unit

  3. Flexibility: flexible, adaptable organizational structures with simple decision processes and responsibilities

  4. Efficiency: economic, efficient structures, systems, and processes avoiding redundancies

Linkages To Be Established

to improve corporate-wide identification and foster greater motivation

  1. Leadership linkages: to coordinate effective decision-making across the business unit, leaders should formulate and ensure that all staff understand the common mission and values of the firm

  2. Performance measures and incentives: they should be consistent with the company's overarching objectives

  3. Teamwork: consists of things like task forces, workshops, committees, and councils

  4. Communication: a comprehensive corporate communication program and direct interaction with employees should be established to disperse information in a timely manner and, thus, support decision-making throughout the firm

6Ws of Corporate Growth

The Tao of Business Success

Why Coherence?

Anyone who wants to achieve solutions to the problems of tomorrow must acquire this vital trait coherence. You cannot realize the benefits of the new business model without this glue that holds together its elements. Coherence is what makes a corporation greater than the sum of it parts. The goal is to encourage access to and sharing of capabilities across your company.

 

By achieving coherence, every individual and each part of the company will be better able to drive purposefully toward a common goal that is clear, communicated, and understood by everyone. "The organizational units themselves may always be in flux, but with effective linkages all the relevant pieces are tied together in a grand unit of common purpose and direction."

The qualities of speed and responsiveness and the ability to tap into the full potential of an organization are not gifted you should build them. There is only one way to achieve these necessary qualities and abilities to develop coherence among the many disparate and far-flung pieces of your company. One of the major objectives is to make your business model more dynamic and less mechanical than the traditional corporation.

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