Activist investor Nelson Peltz recently released a 93-page white paper detailing his campaign for change at Procter & Gamble. He places a lot of the blame on what he describes as their insular culture and “stiflingly” bureaucratic matrix management system. He then proposes structural change to resolve the issue. It’s common for companies early in […]
“Billionaire hedge fund manager Nelson Peltz calls P&G a suffocating bureaucracy” run the summer headlines – with Peltz blaming P&G’s matrix structure for its current woes and launching a proxy shareholder fight. However as we’ve said many times here before, it is not the matrix structure that is the problem it is the ways of […]
I was talking to some HR people in tech start-ups in California recently and they told me that, as organisations start to scale up and become more complex, they regularly hear from engineers who are frustrated. These engineers don’t wish to be “corporate” and threaten to leave to avoid the increasing complexity. At the same […]
At our global team meeting last week one of my colleagues used a phrase that really made me think “the matrix is about surfacing conflict not collaboration”. Many organisations introduce a matrix explicitly to improve the amount of communication and collaboration across the traditional vertical silos, usually geography and function. In a formal matrix structure […]
Matrix management often gets a bad press, with people citing an increase in bureaucracy, reduced clarity and delays in decision-making as common problems. However, the matrix is the organisation structure of choice for the world’s most successful organisations so it must bring some benefits. As well as the business benefits of increasing collaboration across the […]
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