Getting the Best out of the Matrix

by | Oct 7, 2021 | Change Management

Introduction

For 40 Years few have challenged Matrix Management’s viability. Most writers remain convinced that a matrix approach is superior to a hierarchy, but why hasn’t it been more successful? This blog looks at pointing the reader to answer:

How do ensure we get the promised rewards of the Matrix?

First,  a definition for SHRM

In a matrix structure, an employee reports to two managers who are jointly responsible for the employee’s performance. Typically, one works in an administrative function, such as finance, HR, information technology, sales or marketing, and the other works in a business unit related to a product, service, customer or geography.

The matrix model is a network of interfaces between teams and the functional elements of an organization. As its simplest it is:

 think horizontal – think vertical – think interface.

Here are some of the challenges facing those thinking of improving or moving to a matrix based organization.

Key challenges

  • Multiple reporting lines create tension between functions, geographical regions and product lines, and cause conflict, stress and confusion among staff if managers’ are not aligned
  • Poorly defined management roles can result in turf wars or lack of accountability, which can erode organizational cultures
  • Self-managing teams and individuals can free up management time and allow flexibility- but not everyone can make the transition
  • Organizations can set parallel priorities, but do not always coach on how to manage conflicts between such priorities
  • More vulnerable to constant reorganization, which can disrupt working relationships and prevent access to resident knowledge, experience and organizational know-how
  • Proactive managers in a matrix offer great opportunities for professional development, but reactive managers can cause immense stress and over-work
  • Differences in compensation schemes and performance appraisal lead to reinforcing self-interest rather than cross-functional team working

Overall, it can be difficult to keep track of who is overseeing performance if project completion is the key focus for businesses

Questions for Getting the Best out of Matrix Management

How do you get people’s commitment?

At it’s core any matrix introduces far more complexity of interaction and relationships. When not managed this complexity goes to the heart of mistrust, resistance to change and often sabotage. This is a key factor in why surveys from1996 (Kotter) to 2010 (McKinsey) have shown two thirds of change initiatives have failed in North America with those executives saying that “people” is the number one reason for failure.
Clearly, the first step is to

  • Create a charter from top management defining the responsibilities and authority.
  • Define these responsibilities and authority for the functional managers and staff as well.

Then, take the “bull by the horns” and identify and close Expectations Gaps.
Here’s a sample of the questions both managers and staff need to be asked:

1. Which expectations gaps are barriers to improving performance and reducing expenses?
2. Who do you need to gain agreement from?
3. Once agreed, ask them to tell you what evidence you will see that your expectation has been met?
4. Then, hold them accountable – “Inspect what you expect”
5. Then, what do you think others expect of you that is connected to these gaps?
6. Now, repeat steps 2,3 & 4
If you don’t manage this as a core process then you set up what Patrick Lencioni coined as

Five Dysfunctions of a Team

Team Dysfunction

  • Absence of trust leads to
  • Fear of conflict leads to
  • Lack of communication then
  • Avoidance of accountability and finally
  • Inattention to results.

What are people rewarded for?

Continuing to reward people for getting better at what they do within a function guarantees their focus of attention away from matrix behavior. So, telling them that their contribution to other projects or processes is critical falls on “deaf ears”. So, you need innovative reward and recognition schemes that promote matrix behavior. Obvious? Yes, but even sophisticated organizations have failed to master this issue

Different tasks and selling cycles between key accounts and others mean that a single compensation plan is often counter-productive. If different people call on the same  accounts then teamwork is needed and a bonus based on the total account sales or profitability makes more sense. An important issue for team selling is the time frame.  Sales efforts in key accounts can take years.  Yet most sales compensation plans tie incentives to quarterly or annual performance.  The usual result, such as s:

“Because our plan is short-term oriented, I put my efforts where there are short-term benefits. Also, many short-term sales goals don’t need much teamwork. The longer sales mean more hassles of working with lots of people”

Co-ordination between sellers, engineering and others requires multiple-year planning, and qualitative objectives like building key relationships.

What are the performance development issues?

Performance appraisal is another “black hole” waiting for the unwary A performance management process that works has to take account of all those in the supply chain to whom each individual is critical in in performing a process, and thus a complex variant of 360 degree performance review is the only answer.
The other major commitment has to be toward  training and coaching of people in “matrix behavior” and the expectations against which people will be measured and held accountable for

How do you manage in a matrix organization?

It is easy to understand but difficult to manage. Practically, with fewer middle management positions in organizations, what projects do middle ranking specialists focus on when resources are scarce? There has to be a proactive  negotiation and alignemtn between direct line managers and those managing  various project or processes to prevent conflicts becoming entrenched. This can enter the realm of wicked problem solving  as the focus shifts to ‘achieving more with less’. It is clear that ‘matrix’ is needs thinking through to work well.
The common picture of the project manager in a matrixed organization is of a frustrated diplomat struggling to cajole the functional departments into performing the work on schedule and within budget

Anticipate Conflicts

  1. Conflict is inevitable with dual authority.
  2. Conflict can be constructively channeled.
  3. Take positive steps to develop teamwork.
  4. Regular social gatherings help foster a team spirit.
  5. Formal training for “matrix” managers adds value as well.
  6. Avoid direct conflict with the functional manager.
  7. Use the “chain of command” for this purpose.

What are the management tensions in the matrix – on people and organizations?

  • Greater focus on short-term projects rather than long-term issues
  • Shorter attention spans as multiple projects are carried out simultaneously
  • Transactional relationships as managers and employees trade off priorities
  • More flexible yet tense management relationships
  • More open and supportive culture trying to  cope with more political and potentially destructive behavior
  • More ability to deal with ambiguity but at the price of less accountability and greater uncertainty –
  • More productivity, challenge and growth while managing more stress, pressure and fear

What is the future for the matrix?

What do you think? Has matrix management passed its sell-by date? Is there any realistic alternative in sight? What improvements or ideas do you suggest? Let me hear your thoughts.

How do you work in the matrix?

    • Bolster your communication, networking and coaching skills
    • Think about who is making demands on your time and attention
    • Decide how much effort and attention each part of your workload requires
    • Work out how to manage priorities and where you can do trade-offs
    • Understand your managers’ situations and identify potential pressure points
    • Ensure that each manager is aware of your entire workload and push back against unreasonable or conflicting demands
    • Keep your manager informed about what you are doing and your progress

    What is the future for the matrix?

    What do you think? Has matrix management passed its sell-by date? Is there any realistic alternative in sight? What improvements or ideas do you suggest? Let me hear your thoughts. And finally
    Designing a matrix organization is almost never simple. It is an evolving process that requires the input of a variety of people. The design of an effective matrix organization has always been a fascinating process because the ‘actual design’ of the organisation and the overlapping relationships between functions, roles, processes and people can never be sketched out and neatly presented in a two dimensional format. (Roger Edgell)

 


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