At the end of 2011, we asked the team what they thought 2012 would bring. This was the response from training consultant Rod Farnan.

Rod Farnan, Training consultant, Global Integration

In 2011, every market segment was adjusting to the new economic situation.

Almost every segment I am working in is now moving to a virtual matrix organization model. There is a gradual movement away from thinking of this as the latest in a long line of re-organizations: people are appreciating, I think, that this is a new way of working, a new reality, demanding new skills (which is why Rod was so busy last year!).

There are still some unresolved issues though, notably in the systems to support this new way of working.

Compensation is a big one. Are people being compensated to reflect the loyalties they are expected to show? If people have a regional role but also have to be a member of a global project team then does their bonus reflect that? In addition, are HR ready for these compensation plans to change much more frequently as the shape of the virtual matrix changes?

Performance measurement is another. How do we measure our people when we am one of three managers who impact that person’s time and performance? What about the budgeting process? If the person is working on a global project team, they presumably have an increased travel need and require money to support that (and an acceptance by their local manager that they wont be in the office so much).

These were Rod’s thoughts as we came into the New Year. To date, they’ve been pretty much accurate. These challenges are rearing their heads for many of our customers. Have you noted these same trends?

About the author:

Rod Farnan Senior Global Integration director, Rod Farnan, is noted for his understanding of the challenges presented by increasingly complex and matrixed international management, and is regarded as a trusted advisor by many senior leaders. Company profile: Rod Farnan.

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