Designing Matrix Organizations That Actually Work
How IBM, Procter & Gamble, and Others Design for Success
Publisher: Wiley, 2009 , 258 pages
ISBN: 9780470316313
Synopsis:
 Toggle Synopsis

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.
Table of Contents:
 Toggle Table of Contents

 Introduction: Matrix Organizations: What Are They?
 Where Did They Come From?
 What Is a Matrix?
 What Are the Origins of the Matrix?
 What Happened?
 The Star Model
 Implications of the Star Model
 Where Did They Come From?
 Part One: Simple Matrix Orqanizations
 Simple Matrix Structures
 TwoDimensional Structures
 Pharmaceutical R&D Lab Example
 Summary
 The TwoHat Model
 What Is the TwoHat Model?
 Examples of TwoHat Structures
 Summary
 The Baton Pass Model
 The Consumer Goods Model
 The Pharmaceutical Model
 Summary
 The Matrix Within a Matrix
 Design Challenges of the Matrix Within a Matrix
 Matrix Within a Matrix at the Corporate Level
 Mars Pet Food Example
 Summary
 Balancing Power and Defining Roles
 Designing Power Bases
 Roles and Responsibilities
 Summary
 Simple Matrix Structures
 Part Two: Complex Matrix Structures
 The ThreeDimensional Matrix
 International Strategy
 The GeographyDominant Matrix
 The Balanced Matrix
 The BusinessDominant Matrix
 Differentiated Structures
 Other ThreeDimensional Models
 Summary
 More Complex Matrix Structures
 Global Account Teams
 The FrontBack Hybrid Model
 Summary
 The IBM Structure
 The IBM FrontBack Hybrid
 More Complexity?
 Summary
 The ThreeDimensional Matrix
 Part Three: Completinq the Star Model
 Communication in the Matrix
 Informal Communication
 Formal Communication
 Summary
 Planning and Coordination Processes
 Goal Alignment, Dispute Resolution, and Coordination Mechanisms
 Summary
 Planning Processes in the Complex Matrix
 What About Complex Matrix Designs?
 Get the System in a Room
 Online Processes
 Summary
 Human Resources Policies
 Human Capital
 Social Capital
 Summary
 Leadership in a Matrix Organization
 Seeing That Conflicts Are Resolved
 Managing the Top Team
 Balancing Power
 Summary
 Implementing a Matrix
 Using the Star Model
 Building Capabilities
 Summary
 A Synopsis of Matrix Capabilities
 Epilogue: Personal Stories: The Uses and Abuses of the Matrix
 Early Phase: "What Is a Matrix, Anyway?"
 Matrix Takes Off and Becomes Tredny
 The Phase of Decline
 The Stealth Matrix Phase
 Today: Matrix Out of the Closet
 Communication in the Matrix
 Introduction: Matrix Organizations: What Are They?
Reviews:
Designing Matrix Organizations That Actually Work
Rating: **** (Mediocre)
This has to be one of the most profound defenses of the matrix organization I have ever read. The author is a extremely wellregarded OD academic and author, and still, he has a markedly defensive tone, and rushes over some issues that would have deserved a better treatment/defense. It is well written, but even the author can't make a very convincing case that the matrix organization is the beall (and he doesn't even try, to his credit) and some of the cases that he describes as "matrix", you're hardpressed to even detect the difference to a multidivisional company with a HQ...
It deserves to be read, but that is the best that can be said about it.