Parent Context

Contexts build organizational design from a decision-centric point of view. Carve up the enterprise into nodes with defined boundaries and specific purpose to scale the organization. These nodes come with a specific decision authority that is granted to their leadership. How the nodes are defined will strongly influence how decisions are made. It defines a boundary that establishes scope for leadership, decision authority, and budgetary authority over some key responsibilities. Contexts have two kinds of relationships with other contexts: Peer and Parent. For any context, its Parent context is the one that: (1) identifies the need for the context and creates it, (2) funds it with a budget that is appropriate for its responsibilities, and (3) chooses the leadership.

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Example Syntax:

"<Context A> is sponsored by <Parent Context B>, and received <Budget $> from <Parent Context B> to support <Parent Goals> and pursue <Parent Results> in <Fiscal Year YYYY>."

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For more:

• "When to Decentralize Decision Making, and When Not To", Herman Vantrappen and Frederic Wirtz (2017).