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

by Jay R. Galbraith

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.

Genres: Business, Leadership

272 pages, Hardcover

First published September 22, 2008

Reviews

[Steen Sørensen]

Nice easy book with lots of insides on how's and why's in an matrix organization.

I found it good in the case of understanding large IT vendors decision processes - the how's and why's in making business with them.

[Scott Pearson · Rating 5 out of 5]

I work in software at a research lab in an academic medical center. We produce new software to address large problems, locally and globally. Although our organization’s formal structure is hierarchical, our informal structure very much resembles a matrix – not uncommon in research labs. In business, a matrix organization occurs when people report to more than one manager. In my work, most teams I’m near are cross-functional. I recently moved from a developer role into a role as a program manager, and I identified this book as a way to think through our informal matrix so that I can make better decisions.

Do I feel able to make better decisions after reading? The answer is a resounding yes. As I read, I noticed that I can avoid reacting to cultural practices less and think through strategic outcomes more. I am better equipped to discuss and resolve conflicts, which inevitably arise in matrix organizations. In short, I am able to discuss and deliberate better, which is the essential skill in a research lab.

A great deal of the book talks about how to organize large groups of people and is clearly geared to the C-suite crowd. I did not find these sections nearly as enlightening for my personal situation. However, other sections of the book discussed the interpersonal and cultural changes required to implement the matrix. These chapters were supremely helpful for me. I was able to chart out the effects of actions that I might take. Therefore, it helped me avoid potential missteps.

I still have a lot to think through in order to apply to my work, but at least I’m able to think about the issues clearly. It’s natural for humans to raise questions about the power structures around them. Galbraith’s book facilitates that when the organizational structures are flatter, more informal, and centered around consensus. From what he says, matrix structures can work in almost any industry, so navigating these waters as a manager and a leader can only enhance the prowess of one’s business – and of one’s own career.

[Whitney Menarcheck · Rating 2 out of 5]

Helped me get a baseline understanding of the matrix structure. Found the examples too case-specific to be transferred elsewhere. If you aren't using a matrix in an international company you'll find a lot of it untransferrable.