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1H. Vertical Management 1.0 versus Matrix Management 2.0

  • 1H1i. Table 1.3. Key differences between the VM 1.0/MM 1.0 and MM 2.0 operating systems.
CategoryVM 1.0/MM 1.0MM 2.01
Primary dimensionVerticalHorizontal plus vertical
FocusIndividual (high performing individuals)Teams (high performing teams)
LeaderMust have direct reportsMust lead at least one team; does not need direct reports. Her job must be to primarily fill the role of the leader as opposed to the professional.
Leader valueSpan of controlSpan of accountability and ability to build high performing teams
GovernanceVertical, within functionsCross-functional through Steering Councils for sectors and vectors
AlignmentVertical Horizontal
OptimizationVertical areas – Bottom up   Individuals optimized over teamsSectors, vectors – Top down (see Section 1I1 for definitions of sectors and vectors). Teams optimized over individuals.
Performance reviewDepends primarily on boss’s2 view-pointDepends on accountability portfolio and feedback from team members, team leaders, internal customers, coach, etc.
StandardizationWithin vertical areasAcross the enterprise and for functional technologies within functions
Organizational goalsOnly individual goalsTeam goals and individual goals
Type of goalsStretchAchievable
Deploying strategyDown through vertical hierarchyDown through sectors, vectors
Key relationship(s)Boss/direct reportCustomer/supplier and team relationships
Management approachDirectiveCollaborative
AccountabilityReactive, assignedProactive, voluntary
Management/leadership Management or leadershipManagement and leadership

[1] Many of the concepts delineated in this chart will be introduced in later sections.