Ecosystem Micro-Community Contracts

This is very similar to the industrial coop networks in the Emilia-Romagna area of northern Italy.

> The EMC contracts are rather specific artifacts rarely seen in organizations that are not part of Haier group. The EMC is indeed arguably the most innovative management and ODD (Organization Design and Development) contribution of Haier to management practices of the last decade. The EMC is effectively a multi-party, transient, contract missionized towards a new outcome. The EMC is based on ex-ante agreements connecting all the singular contributions that the parties in the contract (micro-enterprises, SSPs and investors) need to provide to ensure the outcomes of the contract are met. The EMC also regulates the unlocking of specific “upsides” for example in terms of profits re-distribution... EMC contracts have the role to coordinate and ensure cooperation among otherwise very individualistic MEs, and to ensure the organization can bring to the market more complex value propositions that depend on the cooperation of many Micro-Enterprises... By adopting these contracts an organization can successfully ensure that no sclerotization of organizational structures that are no more functional to produce market value are kept in place, thus keeping the organization lean and optimized.source

These contracts embody much of Bob Dunham's intrepretation of "conversations for action" and "team managing action practice" which include Back Ground of Understanding, Conditions of Satisfaction with Time Specified, Negotiation, Committments, Rhythm of Conversations, Declaration of Satisfaction, Compensation.

To fully explain how EMCs work we need to introduce another couple of artifacts that are not specific to Haier but that are essential in the pruning of this basic model: the dual system of Order and Bids. An order and a bid can be seen as the two sides of a contract: -the order specifies what kind of contribution a certain party is supposed to provide as part of an agreement; -the bid specifies the conditions that the proponent is ready to meet to fulfill the order (for example the quality or quantity of the contribution – e.g.: producing 100k pieces in one month) and the related conditions expected in return (e.g.: a fixed lump sum, a % of profits generated by the outcome on the market).