Organisational Flexibility, the rise of the Matrix Management Structure

Today's silo, tomorrows competitive edge!!..

I once asked about the profitability of a product when considering extra payment terms to indirect suppliers in a cross functional meeting, and the Marketing Manager looked at me like I had just killed his first born son! I thought I best not pursue the issue at the time for fear that I be accosted by twenty sword yielding ninjas on my way home making it an even fight!

Upon more serious reflection of such defensiveness and numerous subsequent articles on Matrix Management structures, I have reviewed the core vertical management structure/silo concept as established over time by classical management theory and wondered if a need for simple accountability has become an inhibitor to organisational flexibility in today’s increasingly dynamic marketplace?

Source: Vertex 42

http://www.vertex42.com/ExcelTemplates/organizational-chart.html

Considering this, it is not hard to see why others have sought a solution to this problem, which has arisen in recent years due to the rise in technology as an integrated platform operating in business. Matrix management’s rise has also being aided by globalisation and the integration of advanced marketing strategies into big data models identifying market threats and opportunities much earlier then has been in times past. The need for responsive change through project management has become the norm in industries like technology, construction and government agencies that have dealt with fast changing market places for some years prior to other industries.

Matrix Management Structures have arisen initially through these industries but as technology based disruptor's reach more and more markets, the need to be more flexible in today’s marketplace creates a competitive edge and can become a matter of survival if left too late to plan for and adopt organisational structures like the Matrix Management structure.  It makes vertical structures less ‘silo’ and more ‘contributor’ to common goals set by the senior leadership in a dynamic marketplace. Matrix’d management should be managed by a cadre of high calibre functional and programme managers working together to common objectives rather then at odds, which often arises when perceived centres of power are challenged by often well-intended colleagues trying to do their jobs as they perceive them.

It sounds simple right? Well when thinking about the ‘vertical management silo’ we think of the following:

• ·      Good accountability
• ·      Good downward communication of goals, objectives and tasks
• ·      Good visibility of ‘vertical silo’ activity

When we think of ‘matrix management structures’ we think of:

• ·      Good project charters and functional modus of operation
• ·      Flexibility to handle organisational and/or market change quickly
• ·      Close collaboration on a horizontal level with layered visibility from the top down

It is reasonable to think if we lay out our expectations, the organisational benefits would be directly responsible for a world-class organisation? If so, then why are so many struggling with the need for more organisational flexibility and the matrix management structure as a model? The reasons vary from organisation to organisation but I would offer the following points to consider when looking at one’s company in a matrix management model.

ü  People make or break organisations, the matrix management model is people centric, so consider the model in terms of talent management, corporate culture and how accepting functional managers are to the influence and responsibilities a project manager would have in any change initiative. Without awareness and acceptance by all parties, the matrix management structure becomes dysfunctional and ineffective over time.

ü  Ensure the whole organisation is on board, not just one silo or a group of silos. The sponsor of a matrix management structure needs to be at the very top and the follow through needs to be executed at the same level downwards to successfully re-orientate the vertical silos to the matrix management structure in a planned manner so everybody feels secure and accepts their organisational roles into the future.

ü  Ensure the programme/project management structures are appropriately positioned to effect change and improvement in support of, rather then in conflict with functional silos.

ü  Matrix Management structures offer flexibility but make accountability difficult in complex areas of the business. Make sure the accountability is executed collaboratively using technological means to secure progress and milestone metrics on project and functional areas of operation. The synergy of accountability means projects are managed clearly and collaboratively, as are functional areas. Change management from autocratic management can be difficult but it’s necessary if matrix management structures are to work effectively.

ü  Never consider matrix management structures as an end, but a means to a new modus of operation. The requirements need to be carefully considered against internal readiness, market place dynamics and the strategic plans for the future. Engaging matrix management structures against a narrow window of project management need only will prove problematic and subject to a very high fail risk.

The need to be focused on people in such an increasingly dynamic marketplace has never being so apparent since the 1980s when the last “big push” was on moving the landscape in business. This time, its faster, more dramatic and more impacting leaving those whom balance vision and flexibility with organisational dogma standing into the future. The key always has and always will be people. To quote Debra J. Devine “If we are going to live with our deepest differences then we must learn about one another”. In order to do that we must saddle collaborative leadership practice and culture with a customised matrix model transforming the way we live, work and interact with each other building sustainable business into the future.