One of my favorite science fiction movies is The Matrix (1999). The movie imagines humanity that is unknowingly trapped inside a simulated reality (aka The Matrix) created by intelligent machines to distract humans while using their bodies as an energy source. A computer programmer (aka Neo, played by Keanu Reeves) uncovers the truth as he is drawn into a rebellion against the machines, joining others who have been freed from The Matrix. Not as ominous in meaning and practice, business leaders also use a variety of formats to structure complex organizations. These “matrix structures” are used in organizations where there is a high need for functional specialization and a high need for customer orientation.
Let’s examine three of these forms:
- Functional structures are those in which individuals are grouped by skill, knowledge, and action. Some examples of this structure include accounting, marketing, sales, manufacturing, and operations.
- Divisional structures are those in which individuals are grouped together by product, territories, services, clients or legal entity. For instance, a national retail company might have a division for each part of the country. Or, a healthcare system, might have divisions for various specialties—e.g., pediatrics, psychiatrists, and OB/GYN.
- Matrix structures are those which uses both the functional and divisional forms simultaneously. They are usually characterized by a dual rather than a single change of command. Think of a manufacturing company with specific product lines and functional support housed in each product line as an example. The product line leader has a direct reporting line to everyone in her organization. And, those managers also have a reporting relationship to the heads of those functions at the corporate level.
Critical to the ability for matrix organizations to achieve efficiency and effectiveness is to have high information-processing capacity. In other words, it is important in matrix structures to communicate up, down and across the organization to ensure that both the functional and divisional structures are informed and engaged in market data, decisions, resource allocations, etc. Leaders at all levels must demonstrate strong skills, commitments to communication, collaboration, coordination, and of course, conflict resolution.
So, similar to the story in the movie, working in a matrixed organization structure requires a special mindset and skillset. If you are working in a matrixed organization, here are tips to help you thrive whether you are a team member or a leader:
| TEAM MEMBER | LEADER |
| Understand the priorities of various stakeholders. | Clarify expectations and working agreements. |
| Communicate to all stakeholders. | Share information freely; listen to multiple perspectives. |
| Stay focused on the goals and mission of the organization. | Key goals and priorities in mind as you make decisions; help others understand the rationale for decisions made. |
| Seek feedback about your performance from key stakeholders. | Seek feedback about your performance from key stakeholders; provide feedback to others in a timely and helpful manner. |
| Seek and provide clarification when needed. | Seek and provide clarification when needed. |
| Seek resolution to differences as soon as possible by focusing on interests, not positions. | Ensure resolution to differences as soon as possible by focusing on interests, not positions. |
| Make sure others are aware of your actions and results in order to coordinate with others. | Coordinate the actions of others. |
| Include as many stakeholders as practical in all phases of the work. | Include as many stakeholders as practical in all phases of the work. |
| Celebrate successes. | Celebrate successes and recognize the coordinated efforts of others in the matrix structure. |
| Reflect on experiences in order to learn and apply that learning to future interactions and work. | Provide opportunities to reflect on experiences in order to learn and apply that learning to future interactions and work. |
Are you ready to thrive in your organization? I’m interested in your thoughts, so please leave your comments below.
© 2020, John L. Bennett . All Rights Reserved.
Timely: thank you Dr. Bennett. I’ve recently been tasked with dotted lines to me from four unique product producing groups. This material was timely and extremely helpful.