5.12 - The Matrix Organization

Introduction

A matrix organisation is a flexible structure that enables the allocation of resources to be continually reviewed and kept in balance to ever changing business needs. A matrix project team crosses departmental boundaries and is a temporary natural group.

In its simplest form it is no more than a matrix (hence its name) of projects or requirements / resources available, for example:-

Project Leader	Project	1	2	3	4	Total
		Name	Name	Name	Name	4
Designers		2	6	3	4	15
Development Engineers		1	1	2	1	5
Manufacturing Engineers		3	1	3	2	9
Sales Engineers		1	1	2	1	5
Accountant		.25	.25	.25	.25	1

As projects move through the system and require a different type of resource, the matrix is used to re-balance, control and communicate current or planned allocation. Matrix management allows parallel development of work in a short lead time. A project team environment can be considered as the other extreme to the ‘Functional Organization,’ that is inflexible and encourages complex high non-value-added systems. In a functional organisation work progresses in series through a sequence of specialised offices with poor communications, long lead times, poor reliability and with high cost.

The key is to recognise that between the extremes of the inflexible but stable functional arrangement and the flexible but less stable project arrangement, there is a compromise called the Matrix Organisation.

The Matrix Organisation can be applied to any department, collection of departments, or a complete business, but the compromise above adopts an approach which we are familiar with in the area of manufacturing, planning, and control, (i.e. tasks and work is split into Runners, Repeaters, and Strangers). Consider an example from new product introduction.

Runners, Repeaters and Strangers

Runners - A new product based upon a specialised minor modification to an existing product provided by a single function.

Repeaters - A new product that is a derivative of, but significantly different to an existing product requiring input from 2 or 3 functions departments.

Strangers - A totally new product requiring all functional skills in the team.

Runners are processed through the normal functional organisation (i.e. a functional manager is assigned as project manager).

Repeaters are managed by the nominal lead function manager as a special project, but again through the functional organisation.

Strangers are progressed under the control of a project team leader and project teams of full and part time members with minimum paperwork for control.

The example below shows Product Introduction with a mixture of Runners, Repeaters and Strangers.

Function	All Runners	Repeaters					Strangers
		A	B	C	D	E	A	B	C	D	E
Leader (name*)		*	*	*	*	*	*	*	*	*	*
Design Engineers	6	12					2	4	6	8	2
Development Engineers	3	8					1	2	3	6	0
Manufacturing Engineers	3	7					4	0	2	0	6
Quality Engineers	1	2					0	1	0	0	3
Sales Engineers	1	3					0	1	1	1	1

To successfully run a large organisation with a Matrix requires:-

• Terms of Reference and milestones
• Procedures, including input / output diagrams for each stage in the project process and definition of the role and membership of every meeting, including agendas.
• Agreed communication and strategy.
• Regular review against project plans co-ordinated by a programme timing manager or QA manager.
• Management Commitment
• Training of all Staff
• Budget responsibilities with the project manager reporting to the highest level.