Coordination Phase

Aug 11, 20257 min read

Coordination Phase

The Coordination Phase represents the mature index where groups transition from establishing their structures and processes in the organization phase to focused execution on their purpose and goals. In this phase, a group leverages its fully implemented operational capabilities and governance systems to deliver maximum value and impact. The emphasis shifts from internal development to effective delivery, with coordination becoming a key mechanism for accessing necessary resources, capabilities, and support from the broader network or ecosystem.

The coordination phase is where a group, as an autonomous (or semi-autonomous) entity, both leverages and contributes to the power and collective intelligence of the decentralized network it inhabits (or in the case of a DAO, is creating).

When the Coordination phase is complete, a group may either evolve into a governance or operational structure or enter a completion phase as its purpose is fulfilled.

Key Characteristics

  • Purpose-Driven Execution: The group’s activities are tightly aligned with its core purpose, with clear prioritization of high-impact initiatives that advance its goals.
  • Resource Sharing: The group optimizes the use of its internal resources while accessing and/or contributing resources externally through network relationships.
  • Decentralized Coordination: The group fully implements the onchain tooling and practices that allow its governance and operational structure to leverage decentralization in effective ways.
  • Operational Excellence: Internal systems and processes function smoothly, allowing focus to shift from setup and maintenance to optimization and results.
  • Evolution: The group evolves its governance and operational structure and practices over time in response to its evolving context.
  • Measurable Impact: The group consistently delivers and documents concrete outcomes that advance its purpose and provide value to the broader network.

Functional Elements

Activities

The activities of a Coordination phase group are outlined in their group state documentation. Broadly these include:

  • Internal Governance: Execution of the group’s ongoing governance structure and practices. Including keeping group state documentation up to date and accessible to participants in the network.
  • Network Governance: Participating in external decentralized governance processes within coordinating networks.
  • Strategic Execution: Implementing the group’s strategy through coordinated action that delivers on key objectives and milestones.
  • Operational Coordination: Strategic planning, resource allocation, contributor and partner coordination, etc.
  • External Partnerships: Establishing and executing on partnerships with other autonomous entities in the decentralized network or other stakeholders from outside the network.
  • Impact Measurement: Tracking and communicating the outcomes and value created by the group’s activities.
  • Feedback Integration: Systematically gathering and responding to feedback from users, stakeholders, and network participants.
  • Knowledge Sharing: Documenting and sharing learnings, tools, and approaches that could benefit others in the network. Including consistently updating and sharing its group state documentation.
  • Maintaining Momentum: Sustaining energy and progress toward goals despite obstacles and competing priorities.
  • Balancing Flexibility and Focus: Adapting to changing circumstances without losing sight of core objectives and priorities.
  • Principled Evolution: Ensuring that as the group evolves, it grows in principled ways, avoiding centralization, governance capture, bureaucratic bloat, etc. Leveraging decentralized tooling and practices to ensure governance and operations stay true to design.
  • Maintaining Alignment with Coordinating Entities: Ensuring that new opportunities and partnerships remain aligned with the group’s fundamental purpose and with the purpose of the network that the group is participating in.
  • Consistently Communicating Progress: Ensuring that the network that the group is coordinating with can see and understand the progress it is making and trust that it is a good coordination partner.

Signs of Readiness for Evolution

A coordination phase group may be ready to evolve to a new form or enter completion when:

  • The group’s purpose has been substantially fulfilled or has evolved significantly
  • The operational context has changed in ways that require fundamental restructuring
  • New capabilities or approaches have emerged that would better serve the purpose
  • The group’s work has been effectively systematized or automated
  • The group can no longer maintain the energy and commitment of team members and contributors in order to do its work

Tools and Practices

State Documentation

During the Coordination Phase, the group’s group state documentation is the critical interface between the group and the network it inhabits. It contains the agreements between the group and other coordinating entities, as well as references to web3 tooling and onchain information that allows for effective decentralized coordination between the group and its network.

At coordination phase, if a group fails to maintain their state documentation, or to communicate it clearly and transparently, this should be a red flag for any entity or network coordinating with the group.

Purpose Elements:

  • Evolution of the group’s strategy and goals in line with its purpose
  • Evolution of its relationship with/to other entities in its network and the network itself

Practice Elements:

  • Updated governance practices that evolve as the group grows and changes
  • Maintaining agreements and internal and external coordination processes
  • Evolving contributor engagement and coordination mechanisms
  • Maintaining treasury and resource allocation practices
  • Ongoing retrospectives and feedback processes and ongoing governance and operational evolution
  • Records of major group decisions and transactions

Progress Elements:

  • Implementation of onchain tools where practical
  • Collaborative project management tools tracking group activities and deliverables
  • Communication platforms - meetings, group channels, broadcast channels
  • Shared workspaces, documentation, and data platforms
  • Documentation of learnings and group evolution
  • Impact metrics that track progress toward key objectives - clear articulation of how activities connect to broader network goals

Technical Implementation

Coordination Phase groups typically employ various technical tools to support execution and coordination. At this phase these should, where practical, be onchain tools. This promotes the decentralized properties that are designed into the group’s governance. Using onchain tools is especially important for:

  • Governing the group’s treasury and allocation of resources.
  • Managing changes in the overall governance structure of the group, i.e., who has decision-making authorities.
  • Information for external stakeholders. Coordination partners need to have trust in the group’s processes at a glance.

There is always a balance to be struck between the flexibility of a lightweight minimal organizational structure, and the need for solid tools, practices, processes, and policies to support a group to function successfully. At coordination phase, the group should have its structure fully implemented with technical tooling, in line with what it needs to deliver on its stated governance and operational design.

Success Indicators

A coordination phase has been successful when:

  • Purpose Advancement: The group consistently delivers outcomes that meaningfully advance its purpose
  • Resource Effectiveness: Available resources are deployed efficiently to create maximum impact
  • Network Support: The group maintains ongoing support from the networks that it inhabits
  • Contributor Engagement: The group successfully attracts and retains contributors with aligned skills and interests to deliver on its strategy
  • Clear Governance: The group executes on its governance practices in an effective and transparent way
  • Operational Fluidity: The group’s ability to create and manage operations via tools like roles and tasks can scale coherently to meet the operational needs of the group
  • Adaptive Capacity: The group effectively executes on retrospectives and other feedback processes, and translates insights generated through these processes into changes in the governance and operational structure of the group
  • Documented Impact: Clear evidence demonstrates the value and outcomes created by the group’s activities

The coordination phase represents the period when a group’s full potential is realized through effective execution on its purpose. To do this, it effectively coordinates with the decentralized networks it inhabits.

When successful, the group creates tangible value for itself and for the broader networks while building a foundation for sustainable impact and evolution.

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