Leading a Matrixed Organization to Success

As markets become more global and businesses become multifaceted, CEOs are increasingly opting for a matrix organizational structure. While the matrix structure offers unique advantages, it also necessitates careful management of its risks.

A matrix is not an end unto itself. Unfortunately, too many organizations implement restructuring initiatives with the best of intentions only to find disappointing results with significant business consequences. Its benefits come as a result of a built-in horizontal- vertical tension that allows for flexibility, innovation, and dynamic utilization of resources. However, it is not enough to restructure to a matrix with inspirational messaging and time-bound training. If the matrix is not actively managed, the organization compensates by adding bureaucracy and cost to cover for a rapidly deteriorating and ineffective culture. The following provides an actionable framework that CEOs can customize and use to successfully lead and manage a matrixed organization.