Decision Making In Matrix Organizations

July 30th, 2010

Leadership Workshop (5 of 12) – Manage Decisions Well

Leading at Light Speed is a powerful leadership book by Eric Douglas for businesses, public agencies, and nonprofits revealing the 10 Quantum Leaps to build trust, spark innovation, and create a high-performing organization.

Chapter Four describes how to Manage Decisions Well.

Think of decisions as the quanta of organizational behavior, much as photons are the quanta of light. Many small decisions make up a larger process. In a matrix organization, many people take part in delivering a product or a service. However, specific components of the process as well as specific decisions still rest upon the shoulders of one person. The responsibility of the project budget is that of the team leader. A finance manager has responsibility for budget reports. It is the responsibility of the chief operating officer to assure that each team has the right balance of human resources. The responsibility of business development belongs to the CEO of the organization. In order to assure the coordination of decisions, they all must work together and communicate clearly.

In order to breed trust, a matrix organization requires clarity when it comes to authority and functional roles. Power is status. Authority is status. A buildup of gossip and distrust runs rampant when people are oriented around functional roles and authority. By clearly defining roles and responsibilities, effective leaders keep the noise in check by holding the focus on making good decisions; this is an excellent trust builder. Each level’s assigned decisions are the focus of their communication. They clarify that the source of status stems from participation in decision-making. They arm their employees with the tools to communicate effectively amid the intersecting layers of authority and responsibility – and to address conflicts when they occur.

Of primary importance is their continuous referral of people back to the strategic focus for guidance in making their decisions. They ensure that individuals’ decisions are grounded in purpose, values and vision. Leaders in matrix organizations facilitate the communication needed so that people can build trusted relationships with other people in different parts of the organization. In-person communication can be expensive and time-consuming – and thus tempting targets to cut. As one who has worked in many matrix organizations, let me assure you that it would be a mistake not to make this investment. This may appear challenging, and rightfully so. But if you stick to it, you’ll be building trust. And as you do, you’ll find your work gets a lot easier. Investing in trust-building is the only sure path to success, whether you’re a global behemoth or a small start-up.

Take this free work survey to see if your organization practices the 10 Quantum Leaps of high-performing organizations.

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