Inherited - Integrated - Aligned pattern describes corporate groups with subsidiaries that actively manage cross-product coordination to maintain strategic alignment with inherited corporate direction.
What This Pattern Is
You're a corporate group with multiple subsidiaries or business units, each running an integrated work system with multiple coordinated areas (Integrated - Aligned). The parent sets corporate strategy. Each subsidiary inherits it, but also needs active coordination across their internal product areas to maintain strategic alignment.
This is the pattern of inherited corporate direction + aligned integrated execution in each area.
How It Works
The parent company sets corporate outcomes and strategic direction. Each subsidiary receives these and operates their own integrated work system with multiple coordinated areas (Integrated - Aligned) for their multiple product areas.
But here's the key: Within each subsidiary, there's active coherence management. Product teams across swimlanes coordinate regularly to ensure they're aligned with both corporate strategy and subsidiary strategy.
Example: A digital marketplace holding company (Real estate, Cars, Dating)
- Parent: "Become the #1 digital marketplace in Europe"
- Subsidiary A (Real Estate): Integrates this into their strategy, manages coordinated areas for (Property Listings, Agent Tools, Analytics), actively manages cross-product coherence
- Subsidiary B (Cars): Integrates the parent outcome, manages coordinated areas for (Inventory, Seller Portal, Logistics), actively manages cross-product coherence
- Subsidiary C (Dating): Integrates the parent outcome, manages coordinated areas for (Matching Algorithm, Safety, Community), actively manages cross-product coherence
Each subsidiary actively coordinates across their product areas to stay aligned with corporate direction AND their own strategy.
Key dynamic: Multiple layers of coordination. Corporate → Subsidiary level. Subsidiary → Internal product area level. Both require ongoing management to maintain coherence.
Typical Use
Use this pattern when:
- You have a holding company with complex subsidiaries
- Each subsidiary manages multiple products or service areas (2–4 per subsidiary)
- You need active strategy management at multiple levels
- Subsidiaries are large enough for internal coordination (100+ people)
- Cross-product alignment within each subsidiary is critical
Real-world examples:
- Digital marketplace holding with multiple marketplaces (real estate, cars, dating, jobs)
- Financial services group with multiple business lines (retail banking, wealth management, corporate banking)
- Technology company with multiple product families, each with multiple products
Key Characteristics
- Corporate FL3: Sets inherited strategic direction; each subsidiary adapts and aligns
- Subsidiary FL3-2-1 with coordinated areas: Integrated - Aligned work systems with active coordination
- Autonomy: Medium—subsidiaries are autonomous, but internally managed for coherence
- Coordination: Active at two levels: corporate oversight + internal cross-area management
- Connection: Corporate outcomes → Subsidiary level → Product area coordination; active reviews at each level
- Size: Works well for organizations >1,000 people with complex subsidiaries
Difference from Inherited - Integrated - Independent
Inherited - Integrated - Independent: Subsidiaries run autonomously with no internal cross-product coordination.
Inherited - Integrated - Aligned (Aligned): Subsidiaries actively manage cross-product coordination to maintain coherence.
The difference is management approach. Both use inherited strategy + integrated work systems. This pattern requires active ongoing management to keep internal areas aligned.
Difference from Integrated - Aligned
Integrated - Aligned: Single organization with multiple product areas, active cross-area management.
Inherited - Integrated - Aligned: Corporate group with multiple subsidiaries, each with multiple product areas, active management at both levels.
This pattern adds an extra coordination layer: Corporate → Subsidiary → Product areas. Integration – Aligned): Corporate group with multiple subsidiaries, each with multiple products, active management at both levels.
Pattern 6 adds an extra coordination layer: Corporate → Subsidiary → Product areas.
When to Use This Pattern
This is for complex, mature organizations. Requires mature leadership, clear governance, discipline around strategy cascading, and active coherence management.