From the course: Organization Design
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Set the matrix up for success
The matrix is one of most powerful but misunderstood concepts in organization design. A matrix occurs when we give two of the structural building blocks equal power. The two dimensions are connected through roles that require the people in them to sit on two teams with dual reporting. The matrix forces people in these roles to tend to and make trade-offs between two sets of sometimes competing objectives. The most common matrix connects functions to business units or functions to regions. This allows the organization to achieve the benefits of two structures. In this example we have an IT function and three business units. The leaders of the business units focus on differentiating and optimizing their product line. The head of IT focuses on economies of scale through common process, tools, and skills. The matrix is created by introducing the role of the three IT business managers. The people in these roles sit on two teams, an enterprise functional IT team and a product line team. A…
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