Making a Matrix Organization Work
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1 2003 Center for Effective Organizations, University of Southern California Making a Matrix Organization Work Sue Mohrman Center for Effective Organizations University of Southern California Marshall School of Business
2 2003 Center for Effective Organizations, University of Southern California SM1M Lateral Integrative Mechanisms LINE ORGANIZATION UNIT MATRIX ORGANIZATION MANAGEMENT POSITIONS Dimension Champions, Project/Program Manager More Robust Linkages FORMAL OVERLAY TEAMS LATERAL INTEGRATING ROLES Liaison Roles, Mirror Organizations, Overlapping Membership ELECTRONIC COORDINATION Project-Ware, Group-Ware, CRM Systems BUILDING INFORMAL LATERAL FOUNDATION Personal Networks, Co-Location, Rotations, Interdepartmental Events, IT Connections ORGANIZATIONAL PROCESSES Standard Processes, Goals, Measures, Plans & Reviews Increasing Decision- Making Power
3 2003 Center for Effective Organizations, University of Southern California SM82N Matrix Organizations Require Organizational Clarity Structures and Processes Common work and business processes Clear charters for lateral and vertical units Information sharing and information technology Matrix (multi-cell) planning and goal-setting (organizational and individual level) Matrix (multi-cell) decision griding Top management team providing integrated strategic leadership Multiple input performance management systems
4 Design Communication Processes & System Content of Information Communication Media Accountabilities Who, For What? When? Ongoing Tactical Coordination Performance Related Goals, Feedback Learning and Improvement Strategic Environmental Scanning and Planning 2003 Center for Effective Organizations, University of Southern California SM43I
5 Planning and Goal Setting Strategic planning reflects all dimensions Product planning drives the process Working with customer and geography Functional plans constructed to execute product plans (by cell) Iteration & commitment to contribution in each cell Regular reviews and updates Rewards reflect multiple dimensions Product er Custom Geography Functional Plans to Support / Execute Product and Market Strategies 2003 Center for Effective Organizations, University of Southern California SM27K
6 2003 Center for Effective Organizations, University of Southern California SM69I Decision-Making Responsibility Chart Parties to Decision Decisions KEY: D=Decision Authority; R=Recommend; I=Input; N=Need to Know; U=Uninvolved
7 2003 Center for Effective Organizations, University of Southern California SM83N Matrix Organizations Require Individual Technical, Informal, and Interpersonal Competence Social network linkages Cross functional familiarity Negotiation skills Enlistment skills Business model understanding and business case formulation Collaboration skills Conflict resolution skills
8 2003 Center for Effective Organizations, University of Southern California SM78I Influence Routes in Complex Matrix Organizations Formal Individual Resource Control/Formal Power by Individuals (Based on Hierarchical Structures and Processes) Collective Resource Control/Formal Power by Lateral Groups (Based on Lateral Structures and Processes) Using escalation paths Getting issues on the agenda Making the business case (Operating within the Formal Organization) Informal Through Networks Informal Collaboration Horse Trading All Routes Operate Simultaneously. Effective Performance Depends on Clarity of Formal Organization and Ease of Informal
9 2003 Center for Effective Organizations, University of Southern California SM70I Resource Negotiation Triggering Event e.g. planning session crisis opportunity environmental change Negotiation business case organizational power informal influence horse-trading / resource exchange Realignment of Resources
10 2003 Center for Effective Organizations, University of Southern California SM79I Leading in a Complex Matrix Organization Wearing Dual Hats: Leaders have simultaneous roles in units and across units. Switching roles are important. Convey Purpose: Convey mission, direction, challenges of larger system and sub-piece in larger system. Ensure goals are appropriate. Buffer & Clarify: Leaders absorb rather then pushing down the tension. Clarify constraints and goals. Explain the context Resolve and Raise Issues: Vertically and Laterally Create Conditions for Self-Management: Internal Task Management has declined as proportion of job.
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