Matrix management

Most contract research organizations and pharmaceutical companies are organized in a matrix management structure. This structure is called a matrix because there are project teams that span various functional departments. It may help to visualize the relationship like this ... 

Matrix management is very effective in the time management of cross-functional projects involving the introduction of new products, processes or plants. However, it is of little value in those programmes that are heavily biased to one function, or have an extended time frame with an uncertain endpoint, typical of the more speculative R D programmes. 

The matrix system is commonly used internally within R D Groups, especially when research is product orientated and multi-disciplinary. This will be covered in Section B, 1.2.1. Most companies use matrix management for major projects, whether these be internal, e.g. the construction of a plant or facility, or have an external end point, e.g. the delivery of a product or service to the market. The specific use of empowered multi-disciplinary or cross functional teams working in a matrix, applied specifically to the reduction in the lead time for delivering projects, will be considered again in Section D. 

A common solution to accomodate the needs of development projects is the creation of a matrix management structure. In a matrix organization a project manager is appointed, who reports directly to the higher management and, as far as it concerns the project, is usually on an equal level with the functional managers who control the resources. The authority of the project manager reaches across the functional departments. 

TABLE 4.1 Some Issues and Responsibilities in the Matrix Management System... 

It isn t the intention here to go over the mechanics or details of performance evaluations— how often they re done, what kinds of systems are used, etc. Much of this comes up in Chapter 11. Here, we ll concentrate only on how it fits in with the matrix management system. 

The position of project leader is always an important one within the team, but within the company the actual amount of power it confers can range from a little to a lot. First of all, the title of project leader doesn t usually imply an actual job level in the matrix management system. It s often not a job title the way research associate or group leader is. So the... 

So if project teams, matrix management, and GO/NO GO decision points bring with them the potential for problems, compensation is provided by the opportunities for... 

As previously noted, line managers are ultimately responsible for evaluating the people who report to them, but input from other sources, especially project leaders in the matrix management system, is important as well. The line manager s supervisor and supervisors up to the departmental VP are likely to be involved too. This is a result of the need to keep evaluations and the resulting raises fair and to equalize them across the whole department and the whole company. The smaller the company, the less this is needed, of course. 

The project team must operate in a matrix management style, its members being responsible for what tasks should be undertaken and when they should be started and completed. The members liaise with their respective line managers who are responsible for providing the resources for the tasks and deciding how they should be carried out. This means that the project extends across department and discipline boundaries therefore, communication is essential to ensure that members of the team and their respective line managers are aware of the progress and problems of the project. 

Specific benefits of the System Approach are now emerging as the management of the Asset moves Into a more matrix management approach linking Engineering Systems with Engineering Process and overall delivery of the added value to the Business. 

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