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

Designing Matrix Organizations That Actually Work

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.

Drawing on his forty years of experience in studying and consulting with matrix organizations, Galbraith first defines what they are, tells why they are chosen, and explains why there have been failures. He provides for a complete design of the matrix organization using his Star Model, a tested framework that aligns changes in structure, processes, rewards, and people practices. The Star Model consists of policies that leaders can control and that can affect employee behavior. It shows that managers can influence performance and culture—but only by acting through the design policies that affect behavior. In order to make a matrix work, the author reveals, good relations between departments are needed, planning processes are necessary to get aligned goals, the aligned goals must go into the reward system, and people who are matrix savvy must be selected and developed. Using examples from IBM, Nokia, Procter & Gamble, and other successful corporations, he clearly illustrates the planning processes, reward systems, and human resources practices of successful implementers of the matrix.

Praise for Designing Matrix Organizations That Actually Work

"Rumors of the death of matrix organizations have been greatly exaggerated —the current business models of global companies in many industries require multidimensional lines of control and influence. This lucid book, richly illustrated with compelling insights and examples from Jay Galbraith's forty years spent helping global companies do matrix right, is essential reading for executives, management consultants, and students of organization at all levels."—Raymond E. Levitt, academic director, Stanford Advanced Project Management Program, and coauthor of Executing Your Strategy

"Working with Jay Galbraith has taught me that the ultimate success of a matrix organization is in the implementation. From communicating and planning, to distributing power and decision making—it's all here. No one is more qualified to write on this subject than Jay Galbraith."
—Don Robert, CEO, Experian Group

"Jay has seen the world with a variety of lenses. He brings a rare insight with his unique combination of industry and academic experience. When Jay talks, I take particular note."
—Olli-Pekka Kallasvuo, president and CEO, Nokia Corporation

"Matrix organizations are a necessary evil in today's business environment, and they are very difficult to manage. Jay's knowledge and vast experience with large multinational companies have added immense value to our organization. He's also a pleasure to work with."
—Ken Kannappan, CEO, Plantronics