The Matrix as an Organization
Recently I was reading some very interesting posts on the changes that may be on the horizon for our organizational structures, so here's my thoughts on the subject. . .
I am of the opinion that in this century we are going to see the emergence of the matrix as a viable organizational model.
In the model, large companies will exist as a matrix of smaller companies; selected for their specific core competency and/or economic value. These smaller companies will be independent and in many cases, non-exclusive of the larger organization.
This structure will allow global organizations to maintain a core infrastructure and brand ownership, but provide a reactive outer shell that will provide on demand expertise and access to competitive pricing structures.
The emergence of the matrix will occur due to three main factors:
1. Global organizations will not support the variable cost of maintaining a stable workforce and deliver the profitability expected by the market. Nor will they be able to maintain a disclipined operational infrastructure and still be able to react quickly to a market's innovations.
2. The small business innovation and services sector will continue to grow with the seeding of seasoned and experienced resources being pushed or jumping out of large organizations.
3. The technology of communications has matured to the point of making this model possible in its ability to support a virtual.
Your thoughts?
I am of the opinion that in this century we are going to see the emergence of the matrix as a viable organizational model.
In the model, large companies will exist as a matrix of smaller companies; selected for their specific core competency and/or economic value. These smaller companies will be independent and in many cases, non-exclusive of the larger organization.
This structure will allow global organizations to maintain a core infrastructure and brand ownership, but provide a reactive outer shell that will provide on demand expertise and access to competitive pricing structures.
The emergence of the matrix will occur due to three main factors:
1. Global organizations will not support the variable cost of maintaining a stable workforce and deliver the profitability expected by the market. Nor will they be able to maintain a disclipined operational infrastructure and still be able to react quickly to a market's innovations.
2. The small business innovation and services sector will continue to grow with the seeding of seasoned and experienced resources being pushed or jumping out of large organizations.
3. The technology of communications has matured to the point of making this model possible in its ability to support a virtual.
Your thoughts?
I agree with your concept, although I suggest the term "networked organization" over "matrix" because matrix is currently used to define a structure that at best is difficult and at worst, impossible to manage through. Doesn't there need to be some new form of organizational structure to manage this as well? It's almost like you're moving from an autocracy (traditional business structure) to a republic.
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Point well taken and I will agree that networked organization is a more accurate term for my new model. Regarding the structure needed to oversee this type of organization, I'm not sure I would give up authority to its citizenship (in this case, the independents), however they would have to be represented. Traditionally, this takes the form of some type of product management office, but that won't work in this model. It has to be much more than that. Perhaps the right form is more akin to a collective?
Your comment also brings to mind the type of leadership skills required to drive an organization like this. There would be some unique requirements to be successful in an environment where one has to maintain authority in a structured collaborative, yet independent, environment.
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