Framework

Shared Fate Architecture

TL;DR

Partnership structures where interests align so completely that exploitation becomes self-defeating.

Partnership structures where interests align so completely that exploitation becomes self-defeating. The best partnerships don't require trust - they require alignment so perfect that your success depends on your partner's flourishing.

When to Use Shared Fate Architecture

When structuring partnership agreements, designing incentive systems, or transforming transactional relationships into mutualistic ones.

How to Apply

1

Outcome-Based Contracting Design

Pay for outcomes delivered rather than products/services purchased. Requires measurement infrastructure, baseline data, financial modeling, and executive sponsorship.

Questions to Ask

  • Can outcomes be measured and attributed to partner contribution?
  • What measurement infrastructure is needed?
  • What pricing model aligns incentives?

Outputs

  • Outcome metrics definition
  • Measurement system design
  • Pricing model
2

Co-Development Agreement Structure

Establish frameworks for collaborative innovation with joint governance, shared teams, IP frameworks, and milestone-based funding.

Questions to Ask

  • What governance structure provides strategic oversight?
  • How will joint teams be organized?
  • How will IP be owned and licensed?
  • What milestone-based funding structure works?

Outputs

  • Governance charter
  • Team structure
  • IP framework
  • Funding schedule
3

Information Sharing Framework

Design bidirectional data exchange mechanisms addressing ownership, value distribution, technical infrastructure, and governance.

Questions to Ask

  • What data will flow each direction?
  • Who owns what data?
  • How will value from data insights be distributed?
  • What technical infrastructure enables exchange?

Outputs

  • Data sharing agreement
  • Technical integration plan
  • Value distribution model
4

Joint Value Capture Mechanisms

Design how partnership value is distributed between parties through revenue sharing, cost savings sharing, or tiered pricing.

Questions to Ask

  • How will revenues from joint offerings be shared?
  • How will efficiency gains be split?
  • How will risks and rewards be shared?

Outputs

  • Value distribution agreement
  • Financial terms
5

Long-term Commitment with Flexibility

Create security for relationship-specific investments while maintaining adaptation capacity.

Questions to Ask

  • What contract duration is appropriate?
  • What review and renewal mechanisms exist?
  • What renegotiation triggers are defined?
  • What exit provisions prevent abrupt termination?

Outputs

  • Master agreement terms
  • Review schedule
  • Exit provisions

Shared Fate Architecture Appears in 1 Chapters

Framework introduced in this chapter

Related Mechanisms for Shared Fate Architecture

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