Harvard Business Review Matrix Management: Not a Structure, a Frame of Mind

Our company is globalizing and the new CEO feels that matrix management operating within a matrix-managed organization is the future for this organization as we persue our Vision. The authors' argument justifies the title of this article.

Over the past three decades, many US-based global organizations moved rapidly to implement matrix management/organization in an effort to rapidly globalize their business. A significant number of these companies exhibited a tendency to focus on the structure of the organization rather than the company's human infrastructure as management's first priority in adopting a new, complex approach to business. A focus by top executives on the the functions of the business, geoghraphy and axes appears to stimulate confusion, defensive thinking (on the part of middle management) and a feeling of general insecurity among employees when undertaken before the proper mindset is cultured within the organization's human infrastructure.

If matrix management and its supporting organization are to effectively support the company's stragegy, then the early implementation of the matrix must focus on educating, informing, building and stimulating a mindset that supports the company's vision, its human infrastructure and effective, organization-wide 360 degree communication.

If a CEO does not build a clear link between the matrix management approach to business (along with its supporting organizational structure) and the company's vision for the future then a failure to successfully implement such a new approach to business is relatively assured.

Thomas R. Childers, PhD, CMS, CET
Camas, Washington, USA

All through the 1980s, companies were redefining their strategies and reconfiguring their operations in response to an increasingly complex environment and an accelerating rate of environmental change. But according to the authors "the problem [for managers] is that their companies are organizationally incapable of carrying out the sophisticated strategies they have developed. Over the past 20 years, strategic thinking has far outdistanced organizational capabilities." The obvious solution was the matrix structure with its parellel reporting relationships. However, the authors conclude that the critical strategic requirement is not devise the most ingenious and well coordinated plan but to built the most viable and flexible strategic process. Organizations most successful in reshaping the understanding of its employees has three principal characteristics in common: (1) a clear and consistent corporate vision; (2) effective human resources management; and (3) the integration of individual thinking and activities into the corporate agenda ("co-option"). The authors discuss each of these three characteristics in detail. Conclusion of the article is that organizations need to develop of flexible perspectives and relationship within each manager's mind in order to let individuals make judgments and trade-offs toward a shared strategic objective.

Somewhat disappointing article on an interesting subject by two academic heavyweights. I find the problem with this article that it is too academical and lacks on the practical perspective. Yes, the authors do use examples, but these are just not adequate enough. It all sounds a little bit soo simple. I also feel that the authors do not create a great link between strategy and the matrix structure. In fact, an in-depth discussion on the management of matrix structure probably requires a full book. The authors use business US-English.