Navigating Leadership Within a Matrix Organization

Businesses are having to do more today with fewer resources. Sharing two critical parts of those resources throughout the organization — employee knowledge and ability — is essential for success today. As a result, most companies’ traditional hierarchal management concept is less efficient and is becoming outdated. More companies are moving to a matrix structure for increased flow of information across departments, providing better agility.

But the change involves more than just rearranging names on an org chart. The multiple reporting lines and overlapping responsibilities often lead to employee confusion if a strong management and leadership group isn’t in place.

Therefore, you must change how you view your role as a manager.

What is matrix management?

Let’s start with what it isn’t. It’s not a traditional hierarchal structure that was popular in the past with centralized business control. Based on a military-style chain of command, everyone follows the chain and knows exactly where they fit in the organizational chart.

On the other hand, a matrix structure has two chains of command. One is a traditional hierarchy running along the functional aspect of the employee’s job (accounting, marketing, sales, etc.). The other is more lateral in concept, with employees dealing with things on an individual project basis.

Breaking up the strict chain of command best defines what a matrix organization does. Employees report directly to two or more managers.

Each company can define its matrix structure, such as product and function, where one management dimension handles a specific project or product the company is working on. The other might be via departments, such as marketing, customer service or accounts payables.

Challenges of a matrix organization

Every organizational structure comes with challenges, and the matrix is no different. If you’re aware of these challenges, you’ll be better prepared to address them:

• Lack of clarity around roles — When an employee reports to a functional manager and a project manager and priorities conflict, what does that employee do?
• Mismatched priorities impact business performance — Whenever there is more than one manager involved, there is a chance that conflicts will arise.
• Employee performance could be harder to measure — Because team members in a matrix organization report to more than one manager and could be performing more than one role.

Six keys to managerial success in a matrix organization

While a matrix structure does have its challenges, it can offer many benefits. Still, the challenge is that working in a matrix organization requires new skills and competencies to ensure the company realizes the planned benefits of the matrix as intended. To work effectively as a functional resource manager or a project manager in a matrix structure, leaders need:

A matrix model makes business more agile — but it takes work

The matrix organization structure can make your business more agile and adaptive and adjust to changes quickly, but making it work takes more than just creating a new org chart. Leaders must invest in training to build the right skills and competencies for success.

1. Organizational thinking

   We define this as having a deep understanding of the formal organization (e.g., goals, roles, processes, etc.) and the informal organization (e.g., politics, informal processes, power, etc.) and applying that knowledge to make all decisions.

   A matrix can give you multiple roles in an enterprise, and you’ll answer to more than one person. Knowing how you fit in the matrix will help you take advantage of these opportunities.

2. Influence

   Influence is the ability to affect someone’s character, development or behavior. Successful influencers execute strategies in a way that achieves positive outcomes and builds or strengthens relationships.

   In a hierarchical management structure, you could demand that something needs to be done and assume that it gets handled. However, in a matrix, you learn to lead without authority using social intelligence, character and collaboration.

3. Self-management

   Self-management is the ability to understand, control/manage your emotions and reactions. Self-management includes self-awareness, self-regulation and motivation. To lead well, you must know yourself and understand your management style. You also must be able to find gaps in your competency and work on developing skills you may be lacking.

4. Collaboration

   Being collaborative is the ability to cooperate with others to achieve shared goals. Collaboration involves being flexible, putting the group’s collective needs ahead of your own, and cooperating with others to achieve results positively.

   If you come from a hierarchical management background, you must resist the urge to fall into old patterns. Reach out across boundaries and take advantage of one of the benefits of matrix management.

5. Customer focus

   We define customer focus as making the customer and their satisfaction the center of all you do.

   It’s about ensuring you understand what is important to the customer and working to exceed those expectations to deepen and strengthen the relationship.

6. Empathy

   Empathy involves being able to see things from another person’s perspective, even if you don’t agree with them.

   Empathy enables leaders to better understand their team’s perspective and the customers’ mindset. When priorities in a matrix cross, as they often do, an effective leader needs to approach the conflict from multiple viewpoints.