Designing Matrix Organizations that Actually Work: How IBM, Procter & Gamble and Others Design for Success

303 Pages·2008·2.89 MB·English

by  Jay R. Galbraith

Table of Contents

Title Page
Copyright Page
Dedication
Preface
Introduction - MATRIX ORGANIZATIONS
What Is a Matrix?
What Are the Origins of the Matrix?
What Happened?
The Star Model
Implications of the Star Model
Part One - SIMPLE MATRIX ORGANIZATIONS

Chapter 1 - SIMPLE MATRIX STRUCTURES
Two-Dimensional Structures
Pharmaceutical R&D Lab Example
Summary
Chapter 2 - THE TWO-HAT MODEL
What Is the Two-Hat Model?
Examples of Two-Hat Structures
Summary
Chapter 3 - THE BATON PASS MODEL
The Consumer Goods Model
The Pharmaceutical Model
Summary
Chapter 4 - THE MATRIX WITHIN A MATRIX
Design Challenges of the Matrix Within a Matrix
Matrix Within a Matrix at the Corporate Level
Mars Pet Food Example
Summary
Chapter 5 - BALANCING POWER AND DEFINING ROLES
Designing Power Bases
Roles and Responsibilities
Summary
Part Two - COMPLEX MATRIX STRUCTURES

Chapter 6 - THE THREE-DIMENSIONAL MATRIX
International Strategy
The Geography-Dominant Matrix
The Balanced Matrix
The Business-Dominant Matrix
Differentiated Structures
Other Three-Dimensional Models
Summary
Chapter 7 - MORE COMPLEX MATRIX STRUCTURES
Global Account Teams
The Front-Back Hybrid Model
Summary
Chapter 8 - THE IBM STRUCTURE
The IBM Front-Back Hybrid
More Complexity?
Summary
Part Three - COMPLETING THE STAR MODEL

Chapter 9 - COMMUNICATION IN THE MATRIX
Informal Communication
Formal Communication
Summary
Chapter 10 - PLANNING AND COORDINATION PROCESSES
Goal Alignment, Dispute Resolution, and Coordination Mechanisms
Summary
Chapter 11 - PLANNING PROCESSES IN THE COMPLEX MATRIX
What About Complex Matrix Designs?
Get the System in a Room
Online Processes
Summary
Chapter 12 - HUMAN RESOURCES POLICIES
Human Capital
Social Capital
Summary
Chapter 13 - LEADERSHIP IN A MATRIX ORGANIZATION
Seeing That Conflicts Are Resolved
Managing the Top Team
Balancing Power
Summary
Chapter 14 - IMPLEMENTING A MATRIX
Using the Star Model
Building Capabilities
Summary
Chapter 15 - A SYNOPSIS OF MATRIX CAPABILITIES
Epilogue
References
About the Author
Index

Copyright © 2009 by Jay R. Galbraith

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Library of Congress Cataloging-in-Publication Data

Galbraith, Jay R.
Designing matrix organizations that actually work : how IBM, Procter & Gamble, and
others design for success/Jay R. Galbraith.
p. cm.—(The JosseyBass business & management series)
Includes bibliographical references and index.
eISBN : 978-0-470-37409-2
1. Matrix organization. 2. Corporate culture. I. Title.
HD58.5.G35 2009
658.4’ 02—dc22
2008021043
This book is dedicated to my wife, Sasha.
It is her willingness and ability to read and improve
my writing that helps me immeasurably. Dedicating the book
to her is my way of showing my heartfelt appreciation.
Preface
On several occasions throughout my career, I have considered writing a book on
matrix organizations. Each time I decided not to use “matrix” in the title and
wrote about organization design or global organization instead. In the 1970s,
matrix was too trendy. I thought that once the backlash set in, the book would
stop selling. Unfortunately, I was correct. By the 1980s, it was a common belief
that matrix structures do not work. Under these conditions, no one would buy the
book to begin with. But throughout the 1980s and 1990s, companies continued
to introduce matrix or matrix-like structures. To avoid questions from their
bosses, the adopters used other names, such as “multidimensional structures” or
even the old “line and staff” nomenclature. I remember a project that I had at
Kodak. McKinsey recommended a new strategy and a “shared resource”
structure. It was a matrix structure with a new label. My learning from these
clients was that matrix is an appropriate organization for many business
situations. And when experienced managers face these business situations, they
adopt a matrix organization, whatever it is called, to perform the business
activities.

Matching a matrix organization to the appropriate situation was part of the
challenge; getting it to work was a bigger one. Most managers drew the
organization charts, debated where the dotted and solid lines would go, and then
announced the new matrix structure to their organization. And in most cases, the
structure did not work. (In this book, we will see why.) At one point I was
counting the successes and failures. As I remember now, it was one in four that
were successes. That is, 75 percent of the attempts failed to meet their
objectives, and many actually caused more problems than they solved. It was no
wonder that the idea that “matrix does not work” took hold. But I still had data
points showing that 25 percent of the attempts were successful. Then one day I
was calling on a client who was about to abandon the matrix. At lunch I was
talking with a disappointed manager. He said the company had not changed the
performance appraisal system or the planning process as I and others had
advised. He then said, “You know, it’s not that matrix is a failure here. It’s that
we’ve failed at matrix.” The statement captured many of my experiences. I had
seen many instances where matrix was implemented poorly and incompletely.
Those same managers who saw that matrix was the right structure were not able
or willing to do the hard implementation work to make it a success. So one of
my purposes in writing this book is to articulate the practices of those 25 percent