Thursday, March 4, 2010

Carpets , Matrix & Foams Trading




Matrix organization structures reflect the reality of today’s external and internal business complexity. But the matrix structure itself solves nothing – it is the way people operate the structure, matrix management that makes the matrix organization succeed or fail.
Over 30 years of learning about matrix management and matrix structures has identified some predictable pitfalls. Alignment – is an issue people always raise in a matrix structure. Many companies spend huge amounts of effort trying to get to complete alignment- but in working with matrix organizations, we have come to realist that if we could align perfectly we would not need a matrix – we need to align what we can but get much more comfortable with ambiguity Connected but not effective – matrix organizations are often set up to make organizations more flexible, to break down the old functions or geographic “silos” and encourage more cooperation across the business. Unfortunately we sometimes get what we ask for and then everyone is involved in everything and no one can make a decision or get things done. Many matrix organizations have become too connected, too many people involved in decision and meetings and nobody able to get thigs done. Smart companies are beginning to be more selective about where they connect
Daily dilemmas – a matrix causes daily dilemmas; divided loyalties between multiple bosses, a pressure for both central control and local autonomy. The practical resolution of these dilemmas is carried out in the middle of the organization – not at the top. These “matrix ed middle” managers need the information, skills and empowerment to enable them to succeed but senior managers, who became successful in simper times, sometimes inhibit this by not delegating sufficient autonomy.

Escalation - a lack of capability or confidence in people (often caused by size or remoteness) tends to lead to higher levels of escalation in matrix organization structures – this can lead to delay, cost and dissatisfaction – the only way to break out of this potentially vicious circle is by building capability and trust.

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