Accelerating the Matrix: What's a Leader to Do?
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Insight Experience is a company that helps leading companies develop leaders and execute strategy through business simulations and leadership development experiences. They work globally across industries with a focus on Fortune 1000 clients. Matrix organizations have become more complex with multiple dimensions including functions, business units, geographies, products, and channels. Leading in a matrix requires developing skills in three levers - perspective, relationships, and operating model. Mastering the complexity of the matrix can provide organizations with a competitive advantage.
Accelerating the Matrix: What's a Leader to Do?
- 1. INSIGHT EXPERIENCE www.insight-experience.com 152 Commonwealth Avenue | Concord, MA 01742 | 978-369-0639 | info@insight-experience.com Accelerating the Matrix: What’s a leader to do... A webinar from Insight Experience 6
- 2. • Insight Experience helps leading companies develop leaders and execute strategy • We create dynamic business simulation and leadership development experiences that connect leadership to business results • We work globally across industries, at all levels of management, with a focus on Fortune 1,000 clients About Insight Experience 2
- 3. • Insight Experience helps leading companies develop leaders and execute strategy • We create dynamic business simulation and leadership development experiences that connect leadership to business results • We work globally across industries, at all levels of management, with a focus on Fortune 1,000 clients About Insight Experience 7 All our clients operate in some form of formal or informal matrix, functional partner, or network structure
- 4. • The original definition – Managers have two reporting relationships – Executives “share” P&L responsibility • The 21st century definition...Multiple dimensions – Two dimensions, like products and functions. – Three dimensions, like functions, business units, and countries. – Four or more dimensions, which arise when serving global customers – P&L clarity and budget dependency What is a matrix structure? 8
- 5. • None • Two (often a business/product and functions) • Three (business/product, geography, functions) • Four or more (business/product, channel, geography, functions) Poll: How many dimensions in your organizational structure? 9
- 6. • To focus on multiple goals simultaneously • To leverage resources for economies of scale • To break down silos and encourage cross boundary collaboration • To make resource allocation and cross-functional priority tradeoffs more visible • To develop broader people capabilities • To respond to opportunities at the local level Why a matrix? 10
- 7. • Multiple goals • Economies of scale • Cross boundary collaboration • Visible tradeoffs • People development • Speed of local response Poll: Which is the primary objective of the matrix for your organization? 11
- 8. History 8 “The companies ...assumed that changing their formal structure (anatomy) would force changes in interpersonal relationships and decision processes (physiology), which in turn would reshape the individual attitudes and actions of managers (psychology).” – Christopher Bartlett “It is wise, therefore, for managers thinking of adopting a matrix to be familiar with the diagnoses, prevention, and treatment of nine particular pathologies: tendencies toward anarchy, power struggles, severe groupitis, collapse during economic crunch, excessive overhead, sinking to lower levels, uncontrolled layering, navel gazing, and decision strangulation.” – Stanley Davis and Paul Lawrence 1960s -1970s 1978 1990 2005 2012 To date few studies have examined the human side of the matrix. Most focus on its structure and variant forms. – Sy and D’Annuzio, Human Resource Planning ...a matrix has an innate cultural dimension. It is a way of operating and interacting—a complex web of formal and informal relationships that reflects how things actually get done across the organization. – Jon Katzenbach
- 9. We believe that in the future matrix organizations will become almost commonplace and that managers will speak less of the difficulties and pathologies of the matrix than of its advantages and benefits. Crystal Ball 1978 13
- 10. While true... 14
- 11. • Average multinational organizational size • Globalization of brands • Information cycle time • Information volume A lot has changed... 11
- 12. Functions Business Units/Products Accounts/ Channels Geographies The complexity of the matrix has dramatically increased
- 13. Increasing complexity demands good leaders 17 • Clarify, prioritize, and adapt strategy • Synthesize across complexity • Relate across cultures • Identify tensions and tradeoffs proactively • Create and sustain momentum
- 14. Matrix organizations push tradeoffs down– so leaders at all levels need those skills 18 In best practice companies it’s not about reducing conflict – but balancing competing voices. – Amy Kates President Director of Products VP Design VP Manufacturing VP Finance VP Marketing Human Resources Products Manager A Products Manager B Products Manager C Products Manager D Marketing Manager
- 15. So what’s a leader to do? Leadership Levers Perspective Operating Model Relationships • Build deep social capital and reciprocal relationships • Encourage others to develop relationships to enable cross boundary work • Nurture strong working networks at all levels • Offer a broad perspective on why and how to collaborate • Align your agenda • Communicate shared goals and values • Identify and resolve issues to build matrix capability • Create an effective operating model to support collaboration (structure, processes, systems) • Use shared systems and measures to encourage collaboration
- 16. Insight Issue: A Platform to Talk about Issues and Ideas 20
- 17. Challenge: Build relationships to launch a new product 21 Product Organization Meters and Monitoring Global Sales Organization Enterprise Sales • Existing revenue target • Scarce resources • Market development • Technical sale, requires new skills • Need for first year sales for ROI • Focus on launch activities • Future market segment and long term growth opportunity
- 18. 22
- 19. These choices are representative of each leadership lever 23 Operating Model Disease State Coordination Council Integrated database Roles and Decision Rights Relationship Building Travel Budget Planning offsite Cross Business Assignments Leadership Perspective VP of Technology Message Talk with field leaders Connect to the Strategy
- 20. What this group chose... 24
- 21. What this group chose... 25 0% 10% 20% 30% 40% 50% 60% 70% Operating Model 32% Perspective 38% Relationship 30% Discussion this could trigger: • When is one lever more important than another? • Which is our team’s strength? Which is our team’s opportunity? • What specific actions could we take?
- 22. Levers of Collaboration Vary in Real Life 26 Discussion this could trigger: • What is our organization or leadership bias? • Should we balance our approach differently? • Do different parts of our organization depend on different levers?
- 23. Leading the matrix requires attention to more than a single decision 27 • Clarity of the strategy, direction and goals • Consistent, continuously communication and reinforcement • Who do you work with • What relationships do you build • How do you spend your time • How do address proactive and reactive issues Direction StakeholdersTime Issues
- 25. Intent Interaction Example Inform & Engage Update/ Engage • Keep up to date on progress • Share information • “Elevator speech” • Build ongoing relationships Gain better understanding Inquiry • Hear perspectives/point of view • Increase your knowledge of a situation • Identify issues • Gather input to the frame, analysis or alternatives Build alignment Influence • Align perspectives and actions • Ensure support • Respond to concerns • Overcome objections Change Behavior Coach • Provide constructive feedback • Empower other to address and solve problems • Build capability through situational leadership • Increase accountability of team members Leverage Disagreements Dialogue and Decide • Use “productive conflict” skills to approach conflict situations • Separate business from personal conflict • Avoid surprises • Keep communication open Interactions are the currency of matrix leadership
- 26. The skills for effective interactions are in scarce supply (per the Hay Group) 30 The Hay Group, 2012
- 27. The secret sauce: What do great matrix leaders do? 1. Lead for the big picture 2. Assume positive intent 3. Embrace issues 4. Explain criteria 31
- 28. • Stay big picture • Assume positive intent • Embrace issues • Explain criteria Poll: Which is the most challenging behavior for leaders in your organization? 32
- 29. Your view of Barriers in the Matrix 33
- 30. Poll: How will matrix organization structures change in the next 5-10 years? 34
- 31. Leaders need to pay attention to all three levers for the matrix to deliver its promised results... Where is your opportunity? Perspective Operating Model Relationships
- 32. The leadership at the top performers see mastering the requisite complexity as a source of advantage. (Jay Galbraith 2009) 36
- 33. 38 www.insight-experience.com 152 Commonwealth Avenue Concord, MA 01742 978-369-0639 INSIGHT EXPERIENCE info@insight-experience.com @InsightXP