29 Matrix Management


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Choice is between Sticking to the knitting and fighting fire with fire.

Choice has to be made because - dramatic changes in the global business landscape.

Guess what?? Its not an either or case.

The answer was Matrix Management - parallel reporting relationships, multiple

information channels and overlapping responsibilities.

But there are no free lunches. Parallel reporting > Confusion & turf battles,

geographical barriers etc.

Whats the ideal way a) Focus on managing details i.e. peoples & processes.

b) Dont make a plan instead focus on creating a process which comes up with a plan.

c) Capture individuals capabilities and thereby motivate organization.

Why Matrix Management?


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Earlier: - Focus on strategic innovation rather than organizational challenges

Matrix Management defined objective in purely structured terms. They must also

concern themselves with: -

Organizational Physiology

System that allows information to flow

Shared norms , values and beliefs

Building the organization rather than developing a completely new structure. They: -

Develop clear corporate vision

Manage human resource

Integrated Individual thinking

Building an organization


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Building a shared Vision

Need for a shared vision:

Change in the anatomy must be complemented by change in psychology

Mangers of large organizations tend to be bound by their specific responsibilities

Clarity of

expression:

Three keys to clarity of expression of vision- simplicity, relevance and reinforcement

Simplicity- Simple enough to be accepted organization wide ( Eg: C&C)

Relevance- Linking broad objectives to concrete agendas (Eg: Phillips)

Reinforcement- continual reinforcement, elaboration and interpretation of the vision (Eg: Panasonic)

Continuity ofpurpose:

Organization must continue to be committed to their core values despite changes in leadership orshort term business priorities

Lack of continuity in core objective strategies leads to confusion (Eg: GE operations in Brazil)

Consistencyof application:

Top management must ensure that everyone in the company shares a common vision

Lack of consistency of application in vision leads to chaos among managers often resulting in mutuallydebilitating agendas (Eg: North American Phillips)

3 Cs of an organizations vision


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Key to regaining control of Companies that operate in fast changing

environment is possible only if the top management has the ability to

turn the individual managers into the building blocks of the organization.

This can be done if a company invests in developing its human resources

and use it as a trump card in times of crisis. Developing Human Resourceis a continuous process and following things need to be done for it.

1) Recruitment & Selection

2) Training and Development

3) Career Path Management

Developing Human Resources


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The Case of Philips

CASEConvert managers intellectual understanding of the corporate vision to defend

Western electronics against the Japanese into a binding personal commitment

PROBLEMS

SOLUTION

Created a top-level World Policy

Council for its video business that

included key managers from

strategic markets. The reluctance

of independent managers to take

orders from Dutch units was co-

opted through this council

Allocation of global responsibilities

to units that previously had been

purely national in focus. NAP

Given lead in the development of

projection television &

coordination between Asia and

North America

Improving coordination without

depletion of commitment of

national management teams

NAP refused to share the same

vision as its parent company &

refused to launch new VCRs

The challenge is not so much to build a matrix structure as it is to create amatrix in the minds of our managers

Co-option had transformed the defensive, territorial attitude of NAP managers into

a more collaborative mind-set. They were making important contributions to global

corporate strategy instead of looking for ways to subvert it

RESUTLTS

KeyLearning:

Documents

29 Matrix Management