1. © 2003 Center for Effective Organizations, University of Southern California
Making a Matrix Organization
Work
Sue Mohrman
Center for Effective Organizations
University of Southern California
Marshall School of Business

2. © 2003 Center for Effective Organizations, University of Southern California SM1M
Lateral Integrative MechanismsLateral Integrative Mechanisms
LINE ORGANIZATION UNIT
MATRIX ORGANIZATION
MANAGEMENT POSITIONS
Dimension Champions, Project/Program Manager
FORMAL OVERLAY TEAMS
LATERAL INTEGRATING ROLES
Liaison Roles, Mirror Organizations, Overlapping Membership
ELECTRONIC COORDINATION
Project-Ware, Group-Ware, CRM Systems
BUILDING INFORMAL LATERAL FOUNDATION
Personal Networks, Co-Location, Rotations, Interdepartmental Events, IT Connections
ORGANIZATIONAL PROCESSES
Standard Processes, Goals, Measures, Plans & Reviews
More
Robust
Linkages
Increasing
Decision-
Making
Power

3. © 2003 Center for Effective Organizations, University of Southern California SM82N
Matrix Organizations Require Organizational
Clarity – Structures and Processes
Matrix Organizations Require Organizational
Clarity – Structures and Processes
Common work and business processes
Clear charters for lateral and vertical units
Information sharing and information technology
Matrix (multi-cell) planning and goal-setting
(organizational and individual level)
Matrix (multi-cell) decision griding
Top management team providing integrated
strategic leadership
Multiple input performance management systems

4. © 2003 Center for Effective Organizations, University of Southern California SM43I
Design Communication
Processes & System
Design Communication
Processes & System
Content of
Information
Communication
Media
Accountabilities
Who, For What? When?
Ongoing
Tactical
Coordination
Performance
Related Goals,
Feedback
Learning and
Improvement
Strategic
Environmental
Scanning and
Planning

5. © 2003 Center for Effective Organizations, University of Southern California SM27K
Planning and Goal SettingPlanning and Goal Setting
Custom
Product
er
Strategic planning reflects all
dimensions
Product planning drives the
process
Working with customer and
geography
Functional plans constructed to
execute product plans (by cell)
Iteration & commitment to
contribution in each cell
Regular reviews and updates
Rewards reflect multiple
dimensions
Geography
Functional Plans to Support /
Execute Product and Market
Strategies

6. © 2003 Center for Effective Organizations, University of Southern California SM69I
Decision-Making Responsibility ChartDecision-Making Responsibility Chart
Decisions
Parties
to Decision
KEY: D=Decision Authority; R=Recommend; I=Input; N=Need to Know; U=Uninvolved

7. © 2003 Center for Effective Organizations, University of Southern California SM83N
Matrix Organizations Require Individual
Technical, Informal, and Interpersonal
Competence
Matrix Organizations Require Individual
Technical, Informal, and Interpersonal
Competence
Social network linkages—Cross functional
familiarity
Negotiation skills
“Enlistment” skills
Business model understanding and business case
formulation
Collaboration skills
Conflict resolution skills

8. © 2003 Center for Effective Organizations, University of Southern California SM78I
Influence Routes in Complex
Matrix Organizations
Influence Routes in Complex
Matrix Organizations
•All Routes Operate Simultaneously.
•Effective Performance Depends on Clarity of Formal Organization and Ease of Informal
Individual Collective
Resource Control/Formal
Power by Individuals
(Based on Hierarchical
Structures and Processes)
Resource Control/Formal
Power by Lateral Groups
(Based on Lateral
Structures and Processes)
Using escalation paths
Getting “issues” on the agenda
Making the business case (Operating within the Formal Organization)
Through Networks
Informal Collaboration
“Horse Trading”
Formal
Informal

9. © 2003 Center for Effective Organizations, University of Southern California SM70I
Resource NegotiationResource Negotiation
Realignment
of
Resources
Negotiation
business case
organizational power
informal influence
“horse-trading”/
resource exchange
“Triggering
Event”
e.g. planning session
crisis
opportunity
environmental change

10. © 2003 Center for Effective Organizations, University of Southern California SM79I
Leading in a Complex Matrix OrganizationLeading in a Complex Matrix Organization
Wearing Dual Hats: Leaders have simultaneous roles
in units and across units. Switching roles are
important.
Convey Purpose: Convey mission, direction, challenges
of larger system and sub-piece in larger system.
Ensure goals are appropriate.
Buffer & Clarify: Leaders absorb rather then pushing
down the tension.
Clarify constraints and goals.
Explain the context
Resolve and Raise Issues: Vertically and Laterally
Create Conditions for Self-Management: Internal
Task Management has declined as proportion of job.