Robert Logemann is the CEO of Lift Solutions Holdings, a national crane, crane service and rigging solutions platform.
I am not a command-and-control leader. Though the hierarchical pyramid works for some, I prefer a framework that invites collaboration, flexibility and balance.
This structure radiates decision-making duties across teams and departments rather than driving them from one direction (the top), helping gain buy-in and commitment across the organization. It values the expertise of multiple leaders and allows team members to cross-train their skills. This is the matrix organization, which I consider a template for my and many other businesses’ success.
However, I also find that some team members, particularly managers, wrestle with matrix structures—finding them confusing or disruptive. These managers often struggle without a single, defined reporting line. They may measure accountability differently and lose sight of primary responsibilities. They might also divide their loyalties between project and business goals.
Yet, with careful planning and effective communication, I believe leaders can guide managers and teams to thrive in this organizational structure. Here is what I’ve learned about managing for success in a matrix organization.
Why I Employ a Matrix Organizational Structure
Some leaders prefer directing their companies from a linear platform, constructing org charts with a top-down chain of command that begins with them. I do not wish to diminish that approach, but a matrix framework works better for me (and could possibly work better for you) by empowering more people in decision making. It can make a company more agile, inventive and cooperative. Most importantly, it establishes organizational commitment to agreed-upon objectives, because everyone has a voice.
In my own matrix organization, we separate core functions (such as IT, human resources and finance) under department heads and give business units full P&L responsibility. I ask members of my management group to work across these teams, thus creating a matrix. If you do this, I believe you can capitalize on the many advantages of a matrix organization. Among them:
• Cross-training. Team members and managers who work across business units bring fresh perspectives and promote collaboration. Further, they train new management muscles, making them more effective leaders.
• Adaptability. The crane and crane-servicing industry where I work is evolving to meet customers’ constantly changing needs. We must be agile. A matrix structure permits our teams to prioritize key initiatives, move resources quickly and respond to customer demands.
• Shared resources. Projects in a matrix structure tend to be multidisciplinary, requiring input from multiple teams. Rather than siloing team members departmentally, you can pool them, putting their skills and experience to optimal use.
Managing these mini-teams can be delicate, especially for inexperienced managers new to the process. This is why you should lean on core leadership disciplines that undergird the matrix structure.
How To Create Leaders In A Matrix Organization
A Harvard Business Review piece from 2012 summarized the foundation of matrix management in a way that I believe remains relevant. The article cited four essential competencies to successful matrix management, foreshadowing the structural turn leadership would take over the ensuing decade.
These competencies are empathy, conflict management, influence and self-awareness. Today’s managers understand these skills are fundamental but might not recognize how they apply to matrix management. So, let’s tie them together.
Empathetic leaders listen and respond. Managing a team composed of business, tech and sales employees requires discerning their strengths and differences. Managers who begin with empathy position their teams properly from the start.
Conflict management is more rigorous and precise in a matrix framework because teams change based on business priorities. If your IT and marketing departments bicker occasionally, there’s a good chance members of those teams might differ on a project. Managing in a matrix demands conflict-resolution skills on a micro level.
Influence works in conjunction with conflict management, since asserting it bridges gaps from which conflict can arise. As HBR notes, influential leaders build consensus on inherently collaborative matrix organizations. They exert an empathetic influence that drives better decision making.
I’ve found that self-awareness is often the most difficult skill to unlock, for it requires leaders to train their focus inward. As the emotional capital model reinforces, leaders with a developed sense of self-awareness recognize and control their feelings, understand their impact on others and respect themselves and their positions. Having that personal foundation helps make leaders more successful in a matrix environment.
Managing The Pitfalls In A Matrix Organization
I often see managers, particularly younger leaders, struggle with matrix models because of the multidisciplinary approach required. This struggle is natural; learning to manage cross-functional teams takes time, particularly to delineate clear lines of communication and mitigate power struggles. As a first step toward establishing a successful matrix organization, I suggest that you ensure alignment between functional heads and business leaders. Aligned management can alleviate many potential problems before they arise.
Next, expand communication channels. Information in a matrix organization should flow freely and openly among functional groups. This requires team leaders to maintain open lines with their functional peers and associates and share information with multiple managers. This might feel redundant, but I like to manage this by scheduling weekly check-ins to ensure alignment and prioritization of key initiatives.
Further ways to increase successful outcomes in matrix organizations include diversifying your teams to generate new insights. You can also consider rotational assignments and management training programs to expose young managers to different corners of the company. Lastly, resist settling disputes with a hierarchical iron fist.
Ultimately, the most successful matrix-style managers do not treat their organization as a matrix. They engage the framework to structure cross-functional initiatives and tap the talent within them. They embrace multiple leaders within their organization, blending them with each new endeavor. In other words, they believe in teamwork.
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