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Matrix Management Wiki

3C. Matrix Management 2.0 Structure Overview

  • 3C1. In MM 2.0, structure is created in two dimensions.
    • 3C1i. The vertical dimension is structured to house resources.
    • 3C1ii. The horizontal dimension is structured to run the business.
  • 3C2. Vertical structure is formed around resource areas.
    • 3C2i. A resource area is a vertical segment of the organization that contains a pool of similar resources.
  • 3C3. Horizontal structure is formed around sectors and vectors.
    • 3C3i. The horizontal dimension is structured around sectors first and then vectors.
    • 3C3ii. Sectors are how the business is run. The primary sectors are customers, products/services, business processes/operating projects, and suppliers.
    • 3C3iii. An operating project is a project that is part of doing day-to-day business, as opposed to vector projects that are used to improve, invent, or reinvent what currently exists. Vector projects are used to actualize internal strategy.
  • 3C4. The horizontal dimension has four levels focused on running the business:
    • 3C4i. Executive Level: defines strategy for the organization as a whole
    • 3C4ii. Strategic Level: defines strategy and goals for a sector, segment, or vector
    • 3C4iii. Operational Level: converts goals into specific deliverables
    • 3C4iv. Deliverable Level: produces deliverables
  • 3C5. The vertical dimension is composed of functions focused on resource and technology management.
    • 3C5i. The vertical structure consists of a hierarchy of individuals and groups, connected by lines of authority.
  • 3C6. Teams are the main unit of structure in MM 2.0.
    • 3C6i. The horizontal dimension uses team structures that are aligned either directly or indirectly with the external customer.
    • 3C6ii. In the horizontal dimension, teams are connected through dotted-line relationships and overlapping team participation (called interlocking teams). (See Section 3I for more on interlocking teams.)