The Enterprise Effect is created when separate entities seamlessly combine their resources and capabilities, unleash synergies, and create a single face to the marketplace.

We helped the U.S. Navy achieve the enterprise effect in one of its key areas, with major benefits to the Navy and to taxpayers. Naval Aviation is one of the world’s largest technical enterprises, involving over 180,000 military and civilian personnel, 3,800 aircraft, and 11 nuclear aircraft carriers. But naval aviation was hurting. Over 50% of its aircraft were non-operational, and wear and tear were taking a toll on the rest. The traditional remedy—a larger budget--was not politically feasible. What Naval Aviation needed was an alignment-driven makeover that restored its vitality and ability to fulfill its mission and, as a bonus, returned billions of dollars to taxpayers. It was called The Naval Aviation Enterprise, or NAE, created by the two admirals commanding the two separate silos of Naval Aviation: NavAir, responsible for the acquisition and maintenance of aircraft, (80% civilian), and Commander of Naval Air Forces, (90% military), responsible for the aircraft carriers, pilots, munitions, etc. This phantom entity had no buildings, no budget, and no assigned personnel. Yet it functioned as though it had them all! As its Main Thing, this virtual enterprise adopted a single, customer-focused metric: “Aviation units ready for tasking at reduced cost, now and in the future.” Guided by that measurable goal, the two separate organizations began operating as one, and in the process doubled the availability of the fleet’s combat-ready aircraft, even as they reduced total personnel headcount and costs, producing a yearly $4 billion return to the Navy.

Admiral Vern Clark, the Chief of Naval Operations, called the NAE "the ultimate expression of alignment."

Does the Enterprise Effect seem appropriate for your situation?  If it is, here are our suggestions for creating it:  

• Identify the new entity and assign a single process owner.  
• Assemble the right enterprise team and gain commitment.  
• Support a single customer-driven metric that represents the Main Thing. 
• Agree on desired output.  
• Operate with discipline, governance, and a regular “drumbeat.”  
• Establish a baseline for dollars and people, and assign accountability for results. 

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