Today, more and more companies are adopting cross-functional team structures that reward collaborators over “lone wolves.” Members of these teams often have complex reporting relationships, rather than a single boss, which makes it essential for goals to be aligned across departments or teams.

1. Best Practices to Enhance
Collaboration Across Boundaries
Presented by: Rick Lepsinger, Managing Partner, OnPoint Consulting

2. “This idea that matrix does not work still
exists today, even among people who should
know better. Organization structures do not
fail: managements fail to implement them
correctly”.
Jay R. Galbraith,
Professor Emeritus at the International
Institute for
Management Development (IMS)

3. Thought Leadership
3

4. Objectives
• Learn how cross functional teaming has
evolved
• Understand the benefits and challenges
of cross functional teamwork
• Learn the four prerequisites
• Learn how Hyundai Capital overcame
the challenges of cross-functional
teamwork and built a powerful global
business
4

5. • Emerged in 1960s in aerospace industry
• Peaked during 1970s and 1980s as companies began to expand
globally
• In utility industry in 1980s and 1990s companies adopted
matrix to capture economies of scale
• Successful implementation of matrix structure at GE, Boeing,
Dow Chemical, IBM, Shell Oil, Texas Instruments
Brief History
5

6. Chief Executive
Functional
Manager
Functional
Manager
Functional
Manager
Staff
Staff
Project
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Project
coordination
Gray boxes represent staff engaged in project activities
Classic Matrix
6

7. • Horizontal as well as vertical coordination
• Alternative authority figures to those with hierarchical
position power
• Two (or more) bosses
• Opportunities to efficiently share resources and expertise
Characteristics of a Classic Matrix
7

8. • Fewer formal ties between matrix partners
• More ambiguity regarding who your matrix partners are
• Access to subject matter experts throughout the
organization (e.g. more fluid, less formal structure)
• Increased importance of maintaining lateral relationships
From Grid to Network
8

9. Matrix Today
9

10. (Intended) Benefits of a Matrix
• Companies can focus on multiple business goals
• Reduces cost and leverages economies of scale
• Streamlines work processes and enhances efficiency
• Eliminates silo mentality
• Encourages sharing of best practices
• Customer requirements are met more effectively
• Allows for a quick response to environmental changes
• Better serves specific market segments
10

11. Challenges of Working in a Matrix
• Conflicting or unclear goals and priorities
• Unclear roles and responsibilities
• Ambiguous or shared authority
• Shared resources
• Silo-focused employees; conflict of loyalties
• Leaders unaccustomed to sharing decision making
• Lack of rewards and consequences for matrix performance; lack
of motivation to make the matrix work
11

12. Polling Question: Your Challenges
• Conflicting or unclear goals and priorities
• Unclear roles and responsibilities
• Ambiguous or shared authority
• Shared resources
• Silo-focused employees; conflict of loyalties
12

13. Building Cooperation and
Collaboration:
Four Pre-Requisites

14. The Foundation: Four Prerequisites
• Shared goals and common ground
• Clear roles, responsibilities and decision authority
• Transparency and timeliness of communication
• Standardized work processes
14

15. Shared Goals and Common Ground
Why It’s Important
• Aligns people’s interests; gives the group a shared purpose
• Makes cooperation and collaboration desirable; encourages
teamwork
• Encourages people to communicate problems and results
allowing for faster recognition and resolution of issues
• Allows for autonomy and empowerment of team members; less
monitoring is required
15

16. Shared Goals and Common Ground
How To Do It
• Clarify goals for the matrix team before functional, department or
regional goals are finalized
• Coordinate goals horizontally and ensure they are mutually
supportive; review periodically and adjust as necessary
• Make goal alignment a formal process and hold people accountable
• Look for, and make explicit, shared values and beliefs among matrix
partners (e.g., customer focus, safety, quality, beating the
competition)
16

17. Business
Strategy
Strategic
Initiatives
Strategic
Objectives
SBUs
Goals
SBU 1SBU 1SBU 1SBU 1
Matrix Teams
Goals
RegionsCustomersProductsMarkets
R&D HR IT Sales Marketing
(3 – 5 years)
(Annual)
Coordinate
1
2
3
Coordinate
Manufacturing

18. Clear Roles and Decision Authority
Why It’s Important
• Defines when cooperation is
needed and what it looks like
• Ensures everyone knows what’s
expected of them; enhances
accountability
• Clarifies who to involve in solving
problems and making decisions
18

19. Clear Roles and Decision Authority
Why It’s Important
• People tend to work better
together; fewer arguments
• Helps ensure both process and
people mesh together seamlessly
• Ensures work in not overlooked,
duplicated or completed
inefficiently
19

20. Clear Roles and Decision Authority
How To Do It
• Share descriptions of job roles and responsibilities with matrix
partners
• Work out roles and decision authority in advance for the key
decisions/activities the matrix team is responsible for
• Involve key stakeholders when discussing and deciding on roles and
decision authority
• Communicate who has accountability and authority for key
decisions/activities to the next level
20

21. Clear Roles and Decision Authority
How to Do It
21
Responsible
Accountable
Consulted
Informed
RACI Model
R
A
C
I

22. RACI Chart
Decision/
Activity 1
Decision/
Activity 2
Decision/
Activity 3
Function/Department R C A
Function/Department A A R
Function/Department C I C
Function/Department I R C
Function/Department C I I
22

23. Ensuring the RACI Model Works
• Focus on the 3-5 most critical decisions and activities for which
the matrix partners are responsible (apply the 80/20 role)
• Involve key stakeholders in the discussion
• Build and sustain high levels of trust
• Inform the next level down about role agreements
• Review and revise role agreements based on experience
23

24. Transparency
Why It’s Important
• Ensures everyone has the information they need to do their job
• Minimizes contradictions, distractions, and confusion
• Enables departments and functions to work together to solve
problems; informs planning and goal setting
• Speeds up problem solving and decision making
• Improves productivity and job satisfaction
Improve Communication and Transparency
24

25. Transparency
How To Do It
• Create formal communication plans that outlines who
communicates what to whom
• Use action plans to document agreements and expectations
regarding accountability and timing
• Make sure the right people are involved in decisions
• Check for understanding of what was said before responding or
taking action
Improve Communication and Transparency
25

26. Standardized Work Processes
26
Generate
Order
Submit
Order
Generate
Order
Submit
Order
Generate
Invoice
Assemble
Product
Ship
Product
The Order Fulfillment Process
Sales
Accounting
Manufacturing
And
Production
MIS 205 E-Business & Information Systems

27. Standardized Work Processes
27
Why It’s Important
• Helps realize potential economies of scale
• Ensures consistency and continuity across functions and
departments; improves workflow and enhances reliability
• Avoids overlaps and duplication of work; minimizes conflicts,
enhances speed, improves efficiency, and reduces costs
• Supports the sharing of information and improves transparency
across work units; supports planning and goal setting
• Allows for shared performance metrics

28. Standardized Work Processes
28
How to Do It
• Identify and agree on the core processes with global process owners
• Use business process mapping to diagram the workflow, clarify roles
and responsibilities, and identify “pinch points” and opportunities for
improvement
• Establish local process variants off the standard process
• Establish change management procedures to keep core processes and
local variants aligned
• Establish reporting capability to monitor the local variants and their
cost and timeframe

29. Polling Question
Which of the four pre-requisites are in place in
your organization?
• Shared goals and common ground
• Clear roles and decision authority
• Transparency of communication
• Standardized work processes
29

30. Sustaining Collaboration and
Cooperation: The Skills

31. • Building and sustaining trust
• Influence without authority
• Conflict management
• Involving others in decisions
• Emotional intelligence
• Interpersonal communication skills
31
Skills For Effectively Working on a Matrix

32. Collaborating for Success in Hyundai
Capitals Global Matrix

33. Who is Hyundai Capital
33
• Hyundai Capital Services (HCS), serves as the financial unit for
the Hyundai Motor Group.
• Over the last decade, Hyundai Capital has grown immensely—
providing loan servicing to Hyundai Motor Company’s many
customers in the USA, UK, Europe, Australia, China, Korea,
Canada, Brazil, Russia, and India.
• Each of the regions that HCS services are managed by different
“global entities” with headquarters located in their respective
region.

34. The Problem
34
Between the different Global Entities, central headquarters, the
Global Business Development (GBD) group, and the Hyundai Motor
Group, HCS was faced with numerous challenges, including:
1. Cultural Differences Between the Global Entities and Headquarters
2. Misalignment of Goals Between HCS, the Global Entities, and the
Motor Group.
3. Complicated Organizational Structure with Unclear Roles and
Decision Authority.

35. The Solution
35
1. A Data-Based Approach to Improving Collaboration
• Interviewed a cross-section of executives from HCS, the Global
Entities and GBD on the challenges of working in a matrix
structure.
• Ensure we had a solid understanding of the issues and challenges
team leaders and team members faced on a daily basis.
• Clarified what was currently being done well to support multi-
functional teaming and what factors inhibited team performance.

36. The Solution
36
The results of the interview findings were used in three ways:
• Created a shared view among senior leaders about what the
opportunities for improvement were—creating a common starting
point
• Established a benchmark that could be used to measure progress and
evaluate the effectiveness of the intervention
• Information was used to design the solution and customize the
materials

37. The Solution
37
2. Working On Both Skills and Structure
• One of the most important findings from the interviews was that
not only were there cultural differences and skill development
needs, there were also structural issues
• In addition to a lack of clear roles, decision authority and
transparency of communication, there was a lack of shared (or
even complementary) goals among the different groups as well as
a lack of standardized processes.

38. The Solution
38
3. The Training Sessions
Managers from each region and
function participated in skill
building activities and problem
solving conversations focused on
real-world issues.

39. The Solution
39
3. The Training Sessions: The Agenda
• Benefits and challenges of working in a matrix
• Case Study – Nike’s Global Women’s Fitness: Driving Strategic
Integration
‒ Identify best practices to realize the benefits of the matrix
• Four pre-requisites: shared goals, decision authority, standardized
processes and transparency of communication
• GRID self-assessment: clarify the current state of your matrix team
‒ What factors are in place, areas that warrant attention, actions to
close gaps

40. The Solution
40
3. The Training Sessions: The Agenda
• Building and sustaining trust
‒ Assess individual trustworthiness
‒ Assess the extent to which you are using best practices for building trust
among the members of a matrix team
‒ Identify action to close gaps
• Influencing without authority
‒ Self-assessment: What’s your primary influence style
• Interpersonal communication skills
• Involving others in decisions

41. The Solution
41
3. The Training Sessions: Outcomes
As a result, the Hyundai teams were able to:
• Assess and agree on the current state of their matrix organization
• Understand the challenges facing other business units
• Build trust among matrix team partners and open lines of
communication
• Understand how to gain support for ideas without authority
• Develop the emotional intelligence skills needed for working in a
global matrix (active listening, empathy, and balanced response)

42. The Solution
42
4. Consulting with Senior Leaders
Met with Hyundai Capital’s senior
leadership team to discuss the
organization’s structural issues (e.g.,
shared goals, clear roles,
standardized processes) and made
recommendations designed to make
collaboration across organizational
boundaries both desirable and
feasible.

43. The Results
43
HCS experienced four major changes:
• HCS opened discussions with the Motor Group to align goals and address
the mismatch between production targets and the requirements of sound
loan-making practices.
• HCS and HQ reorganized to improve transparency and communication
and clarified who the Global Entities needed to contact and when which
helped improve the speed and quality of decisions and overall trust.

44. The Results
44
HCS experienced four major changes:
• Clarified roles and decision authority among GBD, Global Entities, and
HQ. The simplification of organizational structures and more clearly-defined
decision authority reduced confusion and miscommunications that wasted
time and resources.
• Provided managers with the skills to build and sustain
collaboration. Through the face-to-face meetings, managers gained an
understanding of the Korean culture and improved their soft skills, helping
them better understand and influence others and gain commitment and
cooperation.

45. Thank you!
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Want to learn more about Working Effectively Across
Organizational Boundaries? Check out our book
“Closing the Execution Gap”.