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

by Galbraith, Jay R.

• ISBN13: 9780470316313
• ISBN10: 0470316314
• Edition: 1st
• Format: Hardcover
• Copyright: 2008-11-10
• Publisher: Jossey-Bass

Summary

Organization structures do not fail, says Jay Galbraith, but management fails at implementing them correctly. This is why, he explains, the idea that the matrix does not work still exists today, even among people who should know better. But the matrix has become a necessary form of organization in today's business environment. Companies now know that if they have multiple product lines, do business in multiple countries, and serve many customer segments through a variety of channels, there is no way they can avoid some kind of a matrix structure and the question most are asking is "How do we learn how to operate the matrix effectively?" In Designing Matrix Organizations That Actually Work, Galbraith answers this and other questions as he shows how to make a matrix work effectively.

Author Biography

Jay R. Galbraith is professor emeritus at the International Institute for Management Development (IMD) in Lausanne, Switzerland. He is also senior research scientist at the Center for Effective Organizations at the University of Southern California. He is the author or coauthor of several books, including Designing the Global Corporation and Designing Your Organization, both from Jossey-Bass.

Table of Contents

Preface	p. viii
Introduction: Matrix Organizations: What Are They? Where Did They Come From?	p. 1
What Is a Matrix?	p. 3
What Are the Origins of the Matrix?	p. 7
What Happened?	p. 10
The Star Model	p. 12
Implications of the Star Model	p. 17
Simple Matrix Organizations	p. 21
Simple Matrix Structures	p. 25
Two-Dimensional Structures	p. 25
Pharmaceutical R&D Lab Example	p. 35
Summary	p. 40
The Two-Hat Model	p. 41
What Is the Two-Hat Model?	p. 41
Examples of Two-Hat Structures	p. 44
Summary	p. 50
The Baton Pass Model	p. 51
The Consumer Goods Model	p. 51
The Pharmaceutical Model	p. 54
Summary	p. 63
The Matrix Within a Matrix	p. 65
Design Challenges of the Matrix Within a Matrix	p. 65
Matrix Within a Matrix at the Corporate Level	p. 69
Mars Pet Food Example	p. 70
Summary	p. 73
Balancing Power and Defining Roles	p. 75
Designing Power Bases	p. 75
Roles and Responsibilities	p. 82
Summary	p. 85
Complex Matrix Structures	p. 87
The Three-Dimensional Matrix	p. 91
International Strategy	p. 91
The Geography-Dominant Matrix	p. 98
The Balanced Matrix	p. 102
The Business-Dominant Matrix	p. 106
Differentiated Structures	p. 107
Other Three-Dimensional Models	p. 109
Summary	p. 112
More Complex Matrix Structures	p. 115
Global Account Teams	p. 115
The Front-Back Hybrid Model	p. 116
Summary	p. 126
The IBM Structure	p. 129
The IBM Front-Back Hybrid	p. 129
More Complexity?	p. 136
Summary	p. 137
Completing the Star Model	p. 139
Communication in the Matrix	p. 143
Informal Communication	p. 144
Formal Communication	p. 145
Summary	p. 150
Planning and Coordination Processes	p. 153
Goal Alignment, Dispute Resolution, and Coordination Mechanisms	p. 153
Summary	p. 160
Planning Processes in the Complex Matrix	p. 161
What About Complex Matrix Designs?	p. 161
Get the System in a Room	p. 172
Online Processes	p. 175
Summary	p. 178
Human Resources Policies	p. 179
Human Capital	p. 180
Social Capital	p. 196
Summary	p. 199
Leadership in a Matrix Organization	p. 201
Seeing That Conflicts Are Resolved	p. 202
Managing the Top Team	p. 208
Balancing Power	p. 210
Summary	p. 213
Implementing a Matrix	p. 215
Using the Star Model	p. 215
Building Capabilities	p. 218
Summary	p. 229
A Synopsis of Matrix Capabilities	p. 231
Epilogue: Personal Stories: The Uses and Abuses of the Matrix	p. 235
Early Phase: "What Is a Matrix, Anyway?"	p. 235
Matrix Takes Off and Becomes Trendy	p. 239
The Phase of Decline	p. 243
The Stealth Matrix Phase	p. 245
Today: Matrix Out of the Closet	p. 247
References	p. 249
About the Author	p. 251
Index	p. 253
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