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Matrix Management Wiki

1D. The Outcomes Needed from a New Operating System

  • 1D1. The outcomes that today’s organizations need from an OS can be summarized by Alignment, Empowerment, Integration, Optimization, and Culture (AEIOC).
  • 1D2. Table 1.1. Needed AEIOC Outcomes and Descriptions.
OutcomeDescription of Outcomes Needed
A – AlignmentEveryone is aligned in two dimensions: around serving the external customer and around moving the organization towards its collective vision (strategic goals).
E – EmpowermentThe organization consists of leaders and individuals who are empowered and self-directed.
I – IntegrationThe organization pulls all the elements of each organizational segment together and manages them as a whole.
O – OptimizationThe organization as a whole is operating as effectively and efficiently as possible.
C – CultureThere is a proactive culture of success.
  • 1D3. VM 1.0/MM 1.0 AEIOC Outcomes
    • 1D3i. Instead of producing the needed outcomes described above, VM 1.0 and MM 1.0 actually produce the following outcomes:
      • 1D3ia. Table 1.2. AEIOC Outcomes from VM 1.0/MM 1.0 OS.
OutcomeDescription of Outcomes Produced by VM 1.0/MM 1.0
A – AlignmentEveryone is aligned in one dimension: around vertical goals.
E – EmpowermentNone. VM 1.0/MM 1.0 does not empower leaders or professionals. Because the OS is based on authority, each level feels disempowered by the level above.
I – IntegrationIntegration is vertical. Functions operate as vertical silos with outputs “thrown over the wall” to the next function.
O – OptimizationIndividuals are optimized over teams. The parts (functions) are optimized instead of the whole (the overall organization).
C – CultureThere is a reactive culture of failure because the entire system is set up to respond to what goes wrong instead of ensuring that things go right.
  • 1D3ii. The OS that is optimized for operating in a two-dimensional organization is called Matrix Management 2.0 (or just MM 2.0).