Flat or Matrix.. Is that really the question?

Having worked with many large organizations, I can no longer count the number of times I’ve participated in the same meeting. The scenario is as follows. It’s the end of the fiscal year and plans are being made for the upcoming year. Whether the year has been successful or not, restructure always remains a topic. I wonder why structure is the leading dialogue and transparency and communication (which this is often the intention for the restructure) is not the main issue.

In general the conversation is the same but it is directed internally versus externally. Internally we get caught up in how to organize departments. Should we be flat or matrixed? Should sales be aligned by territory, by vertical, by key account? Same dialogue different year and way too often the organization doesn’t see the new structure through for a long enough period of time to warrant results. It may take more than a year and if you set to restructure again at the new fiscal year, you may never see success. Enhanced communication and transparency has many benefits but let’s look at the ones most easily achieved.

Improved Transparency

Having lots of reporting lines does not necessarily solve the issue of transparency. The leadership team needs to understand what is going on in the business but access to this information can come in many ways. I’ve seen a few organizations successfully implement scorecards and dashboards to measure corporate performance. The information is available to who ever needs it from all levels of the organization. Marketers are more familiar with this concept. We’ve been tracking success metrics and reviewing information in real time on dashboards for a while. I read an article recently that took a new approach to metrics; exposing that it’s not always in the numbers. These are the type of metrics an organization can share without getting bogged down in the structure.

Shorter Sales Cycle and Improve Market Awareness

If you asked an inside sales person what the company strategy was, do you think they would know? Often with strong organizational lines, the communication stops at the highest level. Every person plays a roll in the sales cycle in some way so ensuring that they are all working towards the common goals are key.

Here is where the social workplace comes into play. Make it easy for your employees to communicate across the organization, not bound by reporting lines. Mandate that senior executives blog (even if just internally) to share their vision with the entire chain of command. Remember the people out on the front lines reflect your company every day – in front of the customer, talking to vendors, etc.. Arm them with the right information to be successful. A friend of ifridge, Elise Segar of Lucre Systems points out the value of informed outbound communication. This needs to be solved internally first and restructuring most likely isn’t the answer.

So what I am proposing is to have the dialogue all year round about moving the company forward and include all levels of the organization. Don’t assume that structure has all the answers. The answers are with the people, now go find them and empower them to be successful through transparency and fluid communication.