Managing within the Matrix Structure Benchmarking Research Best

Managing within the Matrix Structure Benchmarking Research Best Practice Institute Benchmarking Research

Contents • Synopsis • Industry Profiles • Research Methodology • Summary Comparisons • Secondary Research Findings © Best Practice Institute -2 -

SYNOPSIS Project Overview The Study Seeks to Identify Effective Work Solutions, Communication Methods, and Management Strategies for a GM within a Matrix Organization. Matrix Environment Study Methodology • Interview with expert and author in the field of matrix organizational design • Review of relevant literature from academic and business sources on effective leadership in a matrix environment • Examine transactional elements in matrix environments to produce transformational partnerships • Comparative analysis of data across companies and industries to identify best practices © Best Practice Institute -3 -

INDUSTRIES PROFILED Industry Profiles Pharmaceutical Restaurant/Food Service • Large companies headquarted in US and western Europe • Evolving marketplace • Adapts to change • $660 billion industry in US • Customer experience focused • Commercial segment makes up 80% of industry Matrix Structure Industries Profiled Aerospace/Manufacturing Consumer Goods • $144. 1 billion in export sales • Employs about 500, 000 workers in scientific and technical jobs in US • Highly skilled work force • Training and professional development focused • Several sales channels available Sources: www. vault. com © Best Practice Institute -4 -

RESEARCH METHODOLOGY Data Sources Primary Sources • Interview provided by: – Organizational design experts and author • Company websites • Case studies and white papers • Journal of Organization Design Secondary Sources • Harvard Business Review • Forbes • Pharmafile. com • Center for Organizational Design • Strategy+Business • Society for Human Resource Management (SHRM) © Best Practice Institute -5 -

SUMMARY COMPARISONS Matrix Structure Elements Industry Structure Matrix Strategy Matrix Advantages Boeing Aerospace/Manufacturing Includes horizontal and vertical organizational structure Reduce costs and enhance product quality Ability to distribute finances to various departments, recruit qualified employees Eli Lilly Pharmaceutical Combine various Reduce number of business units under layers new division in 2014 Wider networking between functions Novartis Pharmaceutical Global business units Keep company close Attract and retain top to customers talent by reducing bureaucracy Procter & Gamble Consumer Goods Hybrid-teams used when two or more functions share common problem Retain efficient customer response while reducing cost Starbucks Restaurant/Food Service Four divisions based Improve customer on US location satisfaction (Western/Pacific, Northwest/Mountain, Southeast/Plains, Northeast/Atlantic) Ability to adapt to local expectations across nations Develop products faster with more local appeal to customers Sources: Case studies Best Practice Institute -6 -

SUMMARY COMPARISONS – Matrix Success Elements Analysis of Matrix Structure Success Communication • Create trust through transparent communication • Involve the other manager • Avoid placing employee in the middle • Ask questions • Allow to be influenced Coordination • Engage functional team members in challenging projects • Plan out meetings in advance • Encourage participation across functional roles • Connect different functions together for common purpose Team Integration Matrix Structure Success • Were company objectives met for this new structure? • Is client/customer outcomes improved as a result of this structure? Clarity • Define roles between solid and dotted line managers • Understand goals of functional reports • Bring competing goals to light • Address juggling demands of two bosses • Set rules on matters to elevate and to whom Best Practice Institute -7 -

SUMMARY COMPARISONS – TRANSFORMATIONAL ELEMENTS Transforming into Matrix Structure Partnerships New Transactional Collaborative Integrated Team and Little need to interact. No relationship is present. Involves information handoffs to other team members management Teams working involved in together outside planning, goal of functional silos. setting and decision making. “None of us is as smart as all of us. ” Richard Olson, Former CEO Best Practice Institute -8 -

SECONDARY RESEARCH FINDINGS Full Scope of GM Leadership Strategies in Matrix Structure – Communicating • • • Listen, ask why questions Purposeful meetings Remove barriers to the team’s success Establish goals and metrics at the beginning of the year or project Involve necessary parties across team and other managers – Managing • • • Clarify management roles Manage through emotional intelligence Seek collaborative solutions Create professional development opportunities Focus on strategic planning – Influencing • • Allow to be influenced Build consensus around a common purpose Proactive approach – don’t wait for problems to start Build trust through decision making transparency “Managers must be prepared to introduce new systems and processes as well as set the right boundaries of accountability and responsibility. ” Sources: Dancer and Raine (December 4, 2010) Pharmafile. com, Making the Matrix Work Best Practice Institute -9 -

SECONDARY RESEARCH FINDINGS Advantages of the Matrix Structure • Ability to coach others up – Look beyond solid line reporting structure for next set of leaders – Mentorship opportunities may bridge gaps – Educate functional reports on role in business goals • New opportunities and network – – Significant step in career progress Gain credibility with new business units and departments Learning and professional development opportunities outside of traditional area of expertise Can propel business goals by working with diverse managers and leaders “It’s a different type of leadership. Instead of relying on expertise leadership, the goal is to break down barriers and form partnerships. ” Best Practice Institute - 10 -