Making The Best Decisions In Matrix Organizations

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 is all about how to Manage Decisions Well.

Much as photons are the quanta of light, you should consider decisions to be the quanta of organizational behavior. Many small decisions make up a larger process. When it comes to delivering a product or service within a matrix organization, many people are involved. However, specific components of the process as well as specific decisions still rest upon the shoulders of one person. A team leader has responsibility for the project budget. Budget reports are the responsibility of the finance manager. 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. They all need to be working together and communicating to assure decisions are coordinated.

Anxiety about functional roles and authority can result in distrust in a matrix organization. Power equals status. Authority equals status. Where people are oriented around functional roles and authority, there can be a bubbling up of gossip and distrust. To build trust, effective leaders keep the noise in check by focusing people on making good decisions – within the context of clearly defined roles and responsibilities. They focus on communicating which decisions belong to each level. 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.

Most importantly, they continually refer people back to the strategic focus for help in making their decisions. They make sure people ground their decisions 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 seem challenging – and it is. 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.

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