| An organizational innovation called Matrix Management | | | | why they are effective, Gunn said, "Think horizontal. |
| gained prominence at many U.S. corporations during | | | | Think vertical. Think interface.” |
| the 1970s and '80s. Matrix management organizes a | | | | The most successful part of matrix management is |
| company by means of a more horizontal management | | | | the delegation of strategic decision-making to experts |
| structures. How does it differ from the traditional | | | | in lower management or non-management levels of a |
| vertically organized structure? | | | | company. Companies that began to use project teams |
| Management consultant Ron Gunn says that “Most | | | | or other horizontal or cross-divisional management |
| people are hard-wired to think 'up the chain.' What do | | | | approaches found success. They were able to |
| the bosses above us want and how shall we organize | | | | alleviate the hierarchical bottlenecks caused by the |
| our efforts to please and provide? The vertical aspect | | | | need for senior management to make every major |
| of the organization is not erased when matrix | | | | decision. |
| management is introduced, it's just that non-traditional | | | | Terry R. Seamons, a management consultant who |
| horizontal management becomes as important, if not | | | | writes frequently about team development, says that |
| sometimes more important than traditional vertical | | | | leading a cross-functional teams require as much art |
| management.” | | | | as it does knowledge and experience. He names four |
| Gunn explains the matrix model as a network of | | | | key ingredients that make a cross-functional team |
| interfaces between teams and the vertical (functional) | | | | successful: |
| structures of an organization. The matrix model has | | | | Establishment of common goals, objectives or |
| attracted renewed interest because a growing | | | | outcomes for the team; |
| number of organizations are using a flatter, more | | | | Clarity of roles of individual team members; |
| horizontal corporate structure to get their work done, | | | | Clear commitment by each team member to those |
| often supplemented by cross-functional teams. | | | | goals, and; |
| A cross-functional team is a group of employees from | | | | A measurement process to determine when success |
| various departments in an organization (e.g., research, | | | | has been achieved. |
| engineering, marketing, human resources) who are all | | | | Management experts in almost every industry agree |
| focused on a specific objective. Team members are | | | | that the best companies are the ones that use |
| brought together to share their expertise to solve a | | | | cross-organization initiatives like this on major issues in |
| specific problem that affects each company area | | | | order to challenge traditional assumptions and open up |
| represented on the team. To understand how | | | | companies to new thinking. |
| cross-divisional management techniques work and | | | | |