Coherence between several enterprises and alliances by projection

The relationships between several enterprises and their contractual alliances can also be expressed through projection. In Figure 24 we give as an example, the well- known Senseo alliance, an contractual alliance between Philips and Sara Lee/DE. This example is taken from De Man’s [22] work in the field of alliance govern- ance. De Man distinguishes, with respect to the governance of contractual alli- ances, 13 building blocks, all positioned on a dichotomy formal / informal. If the character of the alliance requires a stronger control approach the elements ex- pressed on the corresponding part of the dichotomy, such as legal form, financial details, scope and exclusivity, conflict solution procedures, authority struc- ture/hierarchy, are more dominant in the governance of the alliance. If the character of the alliance requires a relatively high trust approach the elements expressed on that corresponding part of the dichotomy, such as norms/values, trust/commitment, culture, personal relationships, reputation, leadership and communication structure, are more dominant. De Man argues that both formal and informal elements should be addressed to get a governance system that works. In line with this theory, we take both the formal and informal elements within the ECF’s of Philips and Sara Lee/DE to obtain the13 building blocks of alliance control as core concepts at the perspective alliance. All effects of the agreements, guiding statements, associated with these 13 building blocks of the perspective alliance, must be implemented in both Philips and Sara Lee/DE in terms of new or changed elements of coherence, perspectives, core concepts, guiding statements, core models and relevant relation- ships. This makes clear what actions the two enterprises in their own enterprises have to carry out to be ready for the actual execution of the proposed alliance. See the two bottom spheres in Figure 24, the Senseo alliance is represented in the up- permost sphere of Figure 24. All guiding frameworks concerning the above men- tioned 13 building blocks inherit by the level of purpose of the alliance Senseo, and from this Senseo level of purpose, the Senseo level of design will be derived in terms of perspectives, et cetera. Besides the common perspectives customer, em- ployees, et cetera all the frameworks of the 13 building blocks of alliance govern- ance can be represented at the design level in all forms of cohesive elements, de- pending on their nature and importance. At this level, all agreements made in the form of cohesive elements by Philips and Sara Lee/DE come together. If within Senseo each guiding statement the relationship is defined with the original perspec- tive / guiding statement of respectively Philips / Sara Lee/DE, due to a change in a guiding statement at Senseo level, the effects respectively within Philips / Sara Lee/DE are seen very quickly. We discuss this value with a brief example. Within the perspective finance at Philips as a result of agreements concerning the distribu- tion of profit, the guiding statement was included: the Senseo alliance will pay monthly x% of the profits made on coffee pads to Philips. Within the perspective

finance at Sara Lee/DE in this case the guiding statement was included: the Senseo alliance will pay monthly to Sara Lee/DE y% of the profits made on coffee pads. At the alliance Senseo within its perspective finance the guiding statement is in- cluded: profits made on coffee pads will be paid monthly in proportion to x% and y% respectively to Philips and Sara Lee/DE. When, after a while, it became clear that the patent for the Senseo coffee pads was no longer tenable, it was immedi- ately clear for all the stakeholders, representatives of the Senseo perspectives, that this situation had financial consequences for Sara Lee/DE, and it would affect the financial position of Philips. This new situation might also lead to changing the ratio of profit distribution for the coffee pads. Thus by applying an ECF through projection, the relationships between several enterprises were made visible and controlled leading to higher quality in decision making.

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6.7 Coherence between several enterprises and alliances by projection

The relationships between several enterprises and their contractual alliances can also be expressed through projection. In Figure 24 we give as an example, the well- known Senseo alliance, an contractual alliance between Philips and Sara Lee/DE. This example is taken from De Man’s [22] work in the field of alliance govern- ance. De Man distinguishes, with respect to the governance of contractual alli- ances, 13 building blocks, all positioned on a dichotomy formal / informal. If the character of the alliance requires a stronger control approach the elements ex- pressed on the corresponding part of the dichotomy, such as legal form, financial details, scope and exclusivity, conflict solution procedures, authority struc- ture/hierarchy, are more dominant in the governance of the alliance. If the character of the alliance requires a relatively high trust approach the elements expressed on that corresponding part of the dichotomy, such as norms/values, trust/commitment, culture, personal relationships, reputation, leadership and communication structure, are more dominant. De Man argues that both formal and informal elements should be addressed to get a governance system that works. In line with this theory, we take both the formal and informal elements within the ECF’s of Philips and Sara Lee/DE to obtain the13 building blocks of alliance control as core concepts at the perspective alliance. All effects of the agreements, guiding statements, associated with these 13 building blocks of the perspective alliance, must be implemented in both Philips and Sara Lee/DE in terms of new or changed elements of coherence, perspectives, core concepts, guiding statements, core models and relevant relation- ships. This makes clear what actions the two enterprises in their own enterprises have to carry out to be ready for the actual execution of the proposed alliance. See the two bottom spheres in Figure 24, the Senseo alliance is represented in the up- permost sphere of Figure 24. All guiding frameworks concerning the above men- tioned 13 building blocks inherit by the level of purpose of the alliance Senseo, and from this Senseo level of purpose, the Senseo level of design will be derived in terms of perspectives, et cetera. Besides the common perspectives customer, em- ployees, et cetera all the frameworks of the 13 building blocks of alliance govern- ance can be represented at the design level in all forms of cohesive elements, de- pending on their nature and importance. At this level, all agreements made in the form of cohesive elements by Philips and Sara Lee/DE come together. If within Senseo each guiding statement the relationship is defined with the original perspec- tive / guiding statement of respectively Philips / Sara Lee/DE, due to a change in a guiding statement at Senseo level, the effects respectively within Philips / Sara Lee/DE are seen very quickly. We discuss this value with a brief example. Within the perspective finance at Philips as a result of agreements concerning the distribu- tion of profit, the guiding statement was included: the Senseo alliance will pay monthly x% of the profits made on coffee pads to Philips. Within the perspective

87 finance at Sara Lee/DE in this case the guiding statement was included: the Senseo alliance will pay monthly to Sara Lee/DE y% of the profits made on coffee pads. At the alliance Senseo within its perspective finance the guiding statement is in- cluded: profits made on coffee pads will be paid monthly in proportion to x% and y% respectively to Philips and Sara Lee/DE. When, after a while, it became clear that the patent for the Senseo coffee pads was no longer tenable, it was immedi- ately clear for all the stakeholders, representatives of the Senseo perspectives, that this situation had financial consequences for Sara Lee/DE, and it would affect the financial position of Philips. This new situation might also lead to changing the ratio of profit distribution for the coffee pads. Thus by applying an ECF through projection, the relationships between several enterprises were made visible and controlled leading to higher quality in decision making.

Figu re 24 . C oh eren ce b et w een se vera l co ncern s a nd th ei r a lli an ces b y pro ject ion

6.8 Recursive application for the perspective information secu-