Lateral coordination is crucial for any company to succeed in a matrix organization. It takes a special kind of organization with a special kind of culture to successfully navigate and reap the benefits of this organizational structure.
A paper by David P Baron and David Besanko published by the Stanford Graduate School of Business defines a matrix organization as, "a structure in which a firm's activities are simultaneously organized along more than one dimension." Dimensions can be classified by different geographical regions, products, functions, and even different target market or customers.
How would you feel if you have to answer to two (or more) bosses? Would you thrive in an organization where you have to function as well horizontally as you would vertically? Do you feel more or less productive in a matrix organization?
For any company to be successful in a matrix organization, lateral coordination needs to happen smoothly at the mid-level management level much more importantly than at the executive management level. A matrix organization touches a lot of the operational activities of the company. It mostly affects the tactical, day-to-day operations of the company.
In my experience, I see that there are two types of relationships in a matrix organizations--the solid-line relationship and the dotted-line relationship.
A solid-line relationship simply means that the two or more bosses you report to are jointly responsible in doing your appraisal, direct supervision, career development, and job objectives.
A dotted-line relationship is more of a coordination function. It's organic in nature and it could be project-based or temporary. This relationship is more laid back. I can also promote a more relaxed and open discussion. On the other hand, a dotted-line relationship can also bring out some uncooperative and even defiant attitudes towards their quasi-bosses. They may think that it's a waste of time or these dotted-lined reports are just hurdles to their productivity.
Lateral coordination is crucial for any company to succeed in a matrix organization.
Proper communication is key to give a matrix organization stand a chance in today's corporate environment. Communicating the purpose, the benefits, and the parameters of the business model is crucial. Making sure that this information is clear and understood will lead to better relationships between these relationships.
Another key to help a matrix organization succeed is making sure that folks are doing meaningful efforts. Deciding to adopt a matrix organization needs to be purpose-driven. Meaning, it's apparent what the benefits are and that it's the only way to achieve a business goal or objective. Remember that adopting a new model should make life easier for the people in your organization. It shouldn't be an impediment to productivity.
In summary, lateral coordination is a key in making a matrix organization work. Proper acceptance of this business model requires excellent communication, and a well-thought and purpose-driven decision to adopt the matrix model.
Are you part of a matrix organization? Please share your thoughts in the comments below. How is it beneficial? What hurdles did you have to overcome? What tips do you have for those reading this article to help them make a matrix organization work for them?