From the course: Managing in a Matrixed Organization
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Decision-making
- Many long-term projects or programs are matrixed, as are some organizational structures where there's a clear product line versus geography or location relationship. Clear decision-making rights are critical to smooth functioning of these organizations. When there's a budget decision to be made, who makes it in this situation? Whose P&L does that cost show up in? These are the kinds of questions that can create tremendous conflict if decision-making rights aren't clear. I was in one of these situations. We were putting in a big, multi-year IT project. There were business unit representatives, functional representatives, and IT representatives on the team. There was a big budget that was being allocated in terms of cost back to the business units. Those business units had little say over the allocation. The project ran long, like a lot of projects do. Allocations back to the business units went up, and they impacted the business unit P&Ls. The business units wanted to start cutting…
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