Organizational Entropy, The Matrix and a Lack of Leadership
June 4, 2008 – 8:17 am
There’s a great conversation starter over on the Harvard Business Blog today on the matrix organization. I’m not sure how the matrix organization has stayed popular, but I think it’s one of the big challenges with businesses today. Gill Corkindale writes in her piece how the idea of matrices became popular in the 1970’s:
“…Companies realized that vertically aligned structures did not address cross-functional or business-wide needs. Matrix structures broke down the hierarchies, allowing teams to share information across task boundaries and enabling managers and staff to build their knowledge and experience across projects.”
The idea that many people can come together and make collective decisions is a noble one, but isn’t that what leadership is for? A matrix organization, where people aren’t sure who they report to, who to go to when a decision needs to be made, devolves to an excellent training ground for company politicking. Let’s say I have a project and I know that if I approach the natural person to get it done my idea will probably get killed. That’s where I can realize the beauty of a matrix organization. I can approach one of the many other mailable people involved in the process and convert them to my way of thinking, eventually contributing enough influence to make it happen. How good is that? It’s great for me and my idea but a dreadful position for the company to be in. The last thing any organization wants is the kids playing mommy and daddy against each other - and yet, that’s what matrix organization encourages.
What the article points out that I didn’t know, is that by the 1980’s management realized that the matrix organization was creating more problems than it solved. If that’s the case, how is it that in 2008 we’re still grappling with the challenges of matrixed organizations? One could argue (as Gill does) that it’s because we’re in a very different business environment. We have to deal with many more cross functional areas than ever before. The information age has made put many people in business on a even footing to contribute to a conversation. That’s the challenge of organization 2.0, the natural state of the organization is matrixed.
Entropy exists in everything and at the end of the day its the job of a company’s leadership to ensure that entropy (matrices) doesn’t take hold in their organizations. Perhaps the best qualities in leaders is not necessarily vision, nor financial acumen. Perhaps the best leaders are moderators, perhaps they act as judge and jury, and perhaps their strength is in keeping people focused. As Gill comments in her piece companies have been slow to train for these skills. What comes to me from this discussion is the need to better define the difference between leadership, management, talent, and vision. It seems that most matrixed organizations are probably lacking in leadership.
Photo Courtesy of brandon shigeta via Flickr
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Tags: business intelligence, business theory, Entropy, Gill Corkindale, Harvard, Leadership, Management, matrix, matrix organization, vision
