1I. Key Definitions for Matrix Management 2.0

1I1. A matrix structure is comprised of sectors and vectors in the horizontal dimension and resource areas in the vertical.
- 1I1i. A sector is a strategic business segment of the organization, focused on external strategy.
  - 1I1ia. Examples of sectors include: customers, products/services, markets, operating processes, supplies, suppliers, etc.
  - 1I1ib. A sector is focused on running or improving a segment of the business.
  - 1I1ic. The sectors identified by an organization as strategically important don’t change unless there is a significant change in strategy.
- 1I1ii. A vector is a major segment of internally focused strategy.
  - 1I1iia. Examples of vectors include: infrastructure, organizational/individual development, compliance, etc.
  - 1I1iib. Each vector houses a set of initiatives that are aimed at improving how the organization functions.
  - 1I1iic. The vectors identified by an organization as strategically important don’t typically change unless there is a significant change in strategy; however, the initiatives contained within a vector will change frequently.
- 1I1iii. A resource area is a vertical function that houses the resources that are allocated to the horizontal dimension.
  - 1I1iiia. Resource areas are a relatively permanent part of the structure of an organization and should not change unless there is a major shift in technology.
- 1I1iv. Resource areas are depicted on the traditional vertical organizational chart.
- 1I1v. Sectors and vectors are depicted on horizontal organizational maps.
1I2. The main structure of a matrix is the team.
- 1I2i. A team is a group of interdependent people who share a common goal.
- 1I2ii. Teams enable the organization to manage interdependent elements or segments.
1I3. There are two standard types of teams: steering and deliverables.
- 1I3i. A Steering Council is a group that governs a sector, vector, or smaller segment of the organization.
  - 1I3ia. Steering Councils exist at the strategic and operational levels of the horizontal dimension. (For more on these levels, see Section 3C4).
- 1I3ii. A deliverables team is a team that produces specific deliverables as defined by a governing Steering Council.
1I4. A matrix has both positions and roles.
- 1I4i. A position is the functional home that an individual occupies in the vertical dimension of the organization.
- 1I4ii. A role is a temporary or permanent function that an individual plays in the horizontal dimension of the organization.
- 1I4iii. Each individual in an organization plays one of two permanent roles: either as a leader or a professional.
  - 1I4iiia. A leader is someone whose primary role is to create strategic and customer alignment, and optimization of the organization.
  - 1I4iiib. A professional is someone whose primary role is to contribute specific expertise in the creation of the organization’s deliverables (products and services). Also known as an individual contributor.
- 1I4iv. The leader role can be further defined as:
  - 1I4iva. A leader may or may not manage a resource area.
  - 1I4ivb. A leader must lead at least one permanent horizontal team if she does not manage a resource area.
  - 1I4ivc. A leader provides direction and resources so professionals can get the work done.
  - 1I4ivd. A leader typically operates at the strategic and/or operational levels in the organization.
- 1I4v. The professional role can be further defined as:
  - 1I4va. A professionals was known as an associate in VM 1.0 and MM 1.0.
  - 1I4vb. A professional is focused on creating outputs/deliverables as opposed to setting goals, aligning priorities, defining strategy, decomposing goals, etc.
  - 1I4vc. A professional may also be team leader on one or more temporary or permanent teams.
- 1I4vi. Professionals are of equal importance to the organization as leaders. The organization cannot exist without both roles.
1I5. Leaders may be area leaders and/or resource leaders.
- 1I5i. An area leader is the head of a resource area, such as a function, department, etc., and is a member of the leadership team. The area leader:
  - 1I5ia. Oversees a permanent unit of the vertical organizational structure.
  - 1I5ib. May or may not have direct reports (be a resource leader).
- 1I5ii. A resource leader has direct reports.
  - 1I5iia. Has direct authority over any direct reports she might have.
1I6. Both leaders and professionals can play the following roles:
- 1I6i. Team leader: A team leader is the leader of a horizontal team, such as a project team, Steering Council, leadership team, etc., either on a temporary or permanent basis.
  - 1I6ia. The team leader has no direct authority over the team but speaks for the team and represents team interests in negotiations with team members, customers, stakeholders, etc.
- 1I6ii. Team member: A team member is a member of a permanent or temporary team.
  - 1I6iia. Leaders are usually team members on strategic and operational teams or on large initiative teams.
- 1I6iii. Internal customer: The internal customer is someone who receives a deliverable from an internal or external supplier.
- 1I6iv. Internal supplier: The internal supplier is someone who supplies a deliverable to an internal or external customer.
1I7. Goals vs. deliverables:
- 1I7i. A goal is a broad, measurable target of what must be accomplished.
- 1I7ii. A deliverable is an output of a process: the product of doing work.
1I8. Initiatives vs. projects:
- 1I8i. An initiative is used to create an organization-wide change. Initiatives are run within vectors.
- 1I8ii. A project is used to create a new or improved product, service, process, or plan. It can be a subset of an initiative, a subset of a program (which is a collection of related projects), or a stand-alone endeavor.
  - 1I8iia. Projects exist within both sectors and vectors.

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