The Matrix

Matrix14.mov

List of Questions for Audience Participation

• How many have seen the Matrix?• How many have seen the Matrix

multiple times?• How many of you saw a different

movie each time?• How many wish I would just show

the Matrix?

How many of you wish that John would have chosen the BLUE pill?

Tank: Download me a Matrix Management 101

Primer

Blatant Plagiarism

• MIT Sloan School• Managing Technical

Professionals and Organizations– Ralph Katz, Tom Allen

http://mitsloan.mit.edu/execed/specialexec/courses/tech-profs-orgs.htm

Blatant Plagiarism

• More stuff

Why a Matrix?

• When Functional?• When Project?• What Balance?

Basic Issues Influencing Organizational Structure

Knowledge Management

Knowledge Management

Systems/Integration

Systems/Integration

Resource AllocationResource Allocation

RewardStructures

RewardStructures

Types of Knowledge

• Market Knowledge• Technical Knowledge

Type I Knowledge of what other team members are doing

Type II Knowledge about new developments in the discipline or specialty

Type III

New knowledge (creativity)

The Process of Innovation

Technology

Market Innovation

Input

Output

Functional/Departmental/Input Organization

D1 D2 D3 D4 D5

Technology

Market

Project/Output Organization

P1

Technology

Market P2

P3

Department vs. Project

• Departmental– Closely mapped to

the supporting technologies

– Better connections to technological innovation

– Less coordination of project tasks and less responsiveness to market change

• Project– Different disciplines

united for a common purpose

– Strong coordination of the project tasks and able to react to market dynamics

– Accomplished at the cost of separation from the disciplinary knowledge. At an extreme, leads to technology erosion.

Matrix Organization

D2 D3 D4 D5

Technology

P1

P2

P3

Market

Matrix Organization

D2 D3 D4 D5

Technology

P1

P2

P3

Market

Program Manager Discovers the Matrix

Creative(?) Tension

• Functional managers want to improve technology– Shipping product gets in the way

• Project managers want to ship product– Don’t give a damn about improving

technology

What are the drivers that determine Matrix balance?• Rate of Change of Technology• Rate of Change of Market• Interdependence of Functional

Groups• Interdependence of Projects

Rate of Change of Technology

• If Technology is changing rapidly, then there is a need to maximize the flow of technology knowledge.

Technology

Market Innovation

Rate of Change of Market

• A dynamic market requires an organization that is geared to shipping product and which is tightly connected to the market.Technology

Market Innovation

Market and Technology Change dM/dt and dT/dt

dT/dt

dM/dt ProjectProject

EitherEither

MissionImpossibl

e

MissionImpossibl

e

FunctionalFunctional

Mission Impossible Options

• Make do with more mature technology

• Acknowledge that keeping up with technology is more critical than market pressures

• High performing matrix organization• Reduce the project time and cycle

people into and out of the project

Interdependence of Functional Groups

• When functional activities are highly interdependent, a structure which supports cross functional communication is required.

D1 D2 D3 D4 D5

e.g. Development and Domain Science

Interdependence of Projects

• When Projects require highly interdependent technologies, a structure which links the technologies through the projects is required.

P1

P2

P3

e.g. OpenWorks Integration

Integration

Functions

Projects

ProjectProject

FunctionalFunctionalEitherEither

MatrixMatrix

Functional Interdependence

(function)

dT/dt

dM/dt ProjectProject

FunctionalFunctional

Functional Interdependence

(function)

dT/dt

dM/dt ProjectProject

Functional

Functional

Project Interdependence(project)

dT/dt

dM/dt ProjectProject

FunctionalFunctional

Project Interdependence(project)

dT/dt

dM/dtProjectProject

FunctionalFunctional

Types of Teams

• Functional Teams• Lightweight Project Teams• Heavyweight Project Teams• Tiger Teams• Hybrid Teams

Functional

DeptMgr

DeptMgr

DeptMgr

DeptMgr

Subprojects

Well defined Interfaces

Lightweight Projects

DeptMgr

DeptLiason

DeptMgr

DeptMgr

DeptMgr

ProjMgr

DeptLiason

DeptLiason

DeptLiason

MSF/SOLID Team Structure

Heavyweight Projects

DeptMgr

DeptLiason

DeptMgr

DeptMgr

DeptMgr

ProjMgr

DeptLiason

DeptLiason

DeptLiason

Tiger TeamsDeptMgr

DeptLiason

DeptMgr

DeptMgr

DeptMgr

ProjMgr

DeptLiason

DeptLiason

DeptLiason

Hybrid Projects

DeptMgr

DeptLiason

DeptMgr

DeptMgr

DeptMgr

ProjMgr

DeptLiason

DeptLiason

DeptLiason

LGC Pre-Reorg

DeptLiason

DeptMgr

DeptMgr

ProjMgr

DeptLiason

DeptLiason

DeptLiason

Testing, User Education, Logistics

Development,

Product Geoscientists

Project vs. Functional

Project

Functional

Lightweight

Heavyweight

Tiger Teams

Technology Transfer• It is a “people process”

– Transferring documentation is, at best, an auxiliary process.

– People must be in direct contact and understand each other to transfer knowledge.

– Moving people is the most effective way to move knowledge• Organizationally or Geographically

– Organizational boundaries generate different cultures which impose serious barriers to the transfer of technology.

Katz and Allen Study of Office Communication

Probability of Communication

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0 20 40 60 80 100

Distance in Meters

Pro

bab

ilit

y o

f C

om

mu

nic

atio

n

All Pairs

IntraDepartment

IntraProject

D P

Communication Findings

• Project influence (P) is typically greater than Department influence (D)

• Communication TypesType I Coordinate Work

Type II

Maintain Knowledge

Type III

Promote Creativity• Project communication is most often

Type I, Functional communication is Type II or Type III

Summary so far

• Drivers influencing Organizational Balance– Technology change--dT/dt– Market change--dM/dt– Subsystem Interdependence--Function

– Project Interdependence-- Project

• Types of teams• Communication

How does this relate to Landmark?

• Classic Unix Products

dT/dt Low

dM/dt Med

Function

Med

Project

Med

dT/dt

dM/dt

ProjectProject

How does this relate to Landmark?

• New Paradigm

dT/dt High

dM/dt High

Function

Med

Project

Med

dT/dt

dM/dtMission

Impossible

MissionImpossible

Reno – Mission Impossible?

• Tiger team like• Short project duration• But…The overall project is long term

– Multiple iterations (Tahoe, Carson City)– Constant refactoring and introduction of

new technology will be required– Growing the teams will present challenges– Long term success will most likely require

a migration from a Tiger team to a high performance matrix

What Problems Do We See?

• One size fits all– Different Technology Maturities– Different Market Maturities– Different Integration Needs

• We are in danger of replacing product silos with functional silos

Functional view of the Matrix

Percy Barnevik, Former CEO of ABB

“The Matrix is a fact of life.“ “If you deny the formal matrix you

end up with an informal one—and that’s much harder to reckon with.”

“They (the functional and project mangers) must understand that they are complimenting each other, not competing”

Roussel: 3rd Generation R&D

“Experience in R&D organizations across all industries shows that a project manager is accepted by the line departments only if he has a budget with which to “buy” services from the line departments. Access to money confers access to control, stature, and respect.”

Organizational Challenges

• Team Issues– Create Teams

• More than just putting a group of people together

– The matrix provides flexibility for varying the Team organization balances, why not use it?

– Office proximity should be guided by project and functional team needs

– Empower Teams to Make Decisions– If Teams can’t reach a decision, make sure

that the Escalation path is efficient and well defined

Conclusions from Allen and Katz

“Analyses show higher project performance when influence over salaries and promotions is perceived as balanced between project and functional managers. Performance reaches its highest level, however, when organizational influence is centered in the project manager and influence over the technical details of the work is centered in the functional manager"

Questions?