The Functional to Matrix Transition
The Functional to Matrix Transition
Karen R.J. White, PMP
RECENTLY PARTICIPATED IN A CONSULTING ASSIGNMENT WHICH INVOLVED MOVING A LARGE ITS ORGANIZATION from an old-style functional-department organization structure towards one more friendly to proj-
Common Pitfalls
ects. The project faced the sorts of challenges that are common when trying to realign organizational structure with the new realities of managing by projects. In addition, there were added cultural barriers because the company was in the financial services sector-a very traditional industry, known for conservatism in management approaches. Project management consultants were called in because, for the first time, the organization was undertaking a multi-year enterprise-wide development program that cut across multiple functional departments, instead of following their old pattern of doing projects within departments. Within the program, several major related projects were being carried out. Clearly, business as usual would not suffice. BASELINE: A FUNCTIONAL/WEAK MATRIX STRUCTURE A Functional/ (Weak) Matrix organizational structure, such as our client company had in place, works well when the focus is on quality and technical expertise. Under this structure, functional managers are responsible for products created within their areas of expertise. The downside: In the company on which this case study was based, it just wasn 't working. And their experience was not uncommon. The functional-based organization structure tends to undermine the authority and decision-making capability of project managers, making project success more difficult. The functional or weak matrix form of organization does have some advantages. In this case, first of all, it was the currently existing state in the client organization. Change is always traumatic in organizations and, to the extent that we could preserve existing processes and systems, the upheaval-and resistance to it-would be minimized. Functional
Karen R.J. White, PMP
RECENTLY PARTICIPATED IN A CONSULTING ASSIGNMENT WHICH INVOLVED MOVING A LARGE ITS ORGANIZATION from an old-style functional-department organization structure towards one more friendly to proj-
Common Pitfalls
ects. The project faced the sorts of challenges that are common when trying to realign organizational structure with the new realities of managing by projects. In addition, there were added cultural barriers because the company was in the financial services sector-a very traditional industry, known for conservatism in management approaches. Project management consultants were called in because, for the first time, the organization was undertaking a multi-year enterprise-wide development program that cut across multiple functional departments, instead of following their old pattern of doing projects within departments. Within the program, several major related projects were being carried out. Clearly, business as usual would not suffice. BASELINE: A FUNCTIONAL/WEAK MATRIX STRUCTURE A Functional/ (Weak) Matrix organizational structure, such as our client company had in place, works well when the focus is on quality and technical expertise. Under this structure, functional managers are responsible for products created within their areas of expertise. The downside: In the company on which this case study was based, it just wasn 't working. And their experience was not uncommon. The functional-based organization structure tends to undermine the authority and decision-making capability of project managers, making project success more difficult. The functional or weak matrix form of organization does have some advantages. In this case, first of all, it was the currently existing state in the client organization. Change is always traumatic in organizations and, to the extent that we could preserve existing processes and systems, the upheaval-and resistance to it-would be minimized. Functional