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Friday, August 9, 2013

Matrix management - does it work?

Ateneo Professor on Entrepreneurship  | August 9, 2013

Ever since Andrew Grove talked about High Output Management on dual plane reporting, many were enamored with matrix management (or after the movie on Matrix came out?  They are contemporary ideas)

What is matrix anyway or dual plane reporting?  It means that a subordinate has two bosses:  the line (his direct superior) and his functional boss (say Customer Service or marketing)  He has to report to the function/profession in the organization.  This is supposed to enrich his knowledge along functional lines:   he attends meetings and updates of his function/profession.  It makes sense doesn't it?  It makes for greater productivity and speed of learning.

However, it has its downside:  it slows down decision making.  Two sign offs are needed for a project/approval and if the proposal needs to be repeated twice with the two bosses and the process goes on and on.  Now I understand why in P & G, the brandman who wants to propose changes  in the product, marketing or promotions strategy addresses directly the president.  The President of the company takes care of the rest.

Now imagine if there are 3 or more matrices:    say geographical, or market segment matrix.

I understand that in the educational institutions,  individuals attend several committees and councils and much work is done in the areas of meeting and more meetings.  And nothing ever gets done.

I overhead the dean of the GSB make the comment on matrix management  -  it does not work.

For me, it is anti entrepreneurial.  We have heard before that talent and quality of management does not make for differentiation this days  -  speed to the market is the competitive advantage

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