Confederations are the most powerful model to organize structured growth. They were born as soon as human tribes began to fight to broaden their “vital space”.
But this was only the beginning. Soon they became a model to expand activities.
The confederative model can be seen frequently in the organization of countries, professional associations, unions, sports, highly differentiated franchises, etc.
Confederations must fulfill some basic conditions as a way to expand the activity of a business and their members:
1) They need to have a superior functionality in the segment they deal with.
2) They need to have a superior ethic in that segment.
3) They need to have a strong spirit de corps.
4) They need to be internally transparent.
5) They need to have a stable “currency”.
Having the necessary expansion capacity, a superior functionality and a spirit de corps defines the power of a Confederation. Formal Confederations that are not adequately structured degrade the relationships with their members and with the environment.
NOTE: The Unicist Research Institute was the pioneer in using the unicist logical approach in complexity science research and became a private global decentralized leading research organization in the field of human adaptive systems. It has an academic arm and a business arm. https://www.unicist.net/management/wp-content/uploads/2013/12/turi.pdf