4. The Matrix

5. 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?

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

8. Tank: Download me a Matrix Management 101 Primer

9. 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

10. Blatant Plagiarism More stuff

11. Why a Matrix? When Functional? When Project? What Balance?

12. Basic Issues Influencing Organizational Structure Knowledge Management Systems/ Integration Systems/ Integration Resource Allocation Reward Structures Reward Structures

13. Types of Knowledge Market Knowledge Technical Knowledge Type IKnowledge of what other team members are doing Type IIKnowledge about new developments in the discipline or specialty Type IIINew knowledge (creativity)

14. The Process of Innovation Technology Market Innovation Input Output

15. Functional/Departmental/Input Organization D1D2D3D4D5 Technology Market

16. Project/Output Organization P1 Technology Market P2 P3

17. 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.

18. Matrix Organization D2D3D4D5 Technology P1 P2 P3 Market

19. Matrix Organization D2D3D4D5 Technology P1 P2 P3 Market

20. Program Manager Discovers the Matrix

21. Creative(?) Tension Functional managers want to improve technology –Shipping product gets in the way Project managers want to ship product –Dont give a damn about improving technology

22. 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

23. 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

24. 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

25. Market and Technology Change dM/dt and dT/dt dT/dt dM/dt Project Either Mission Impossibl e Mission Impossibl e Functional

26. 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

27. Interdependence of Functional Groups When functional activities are highly interdependent, a structure which supports cross functional communication is required. D1D2D3D4D5 e.g. Development and Domain Science

28. 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

29. Integration Functions Projects Project Functional Either Matrix

30. Functional Interdependence (function) dT/dt dM/dt Project Functional

31. Functional Interdependence (function) dT/dt dM/dt Project Functiona l

32. Project Interdependence (project) dT/dt dM/dt Project Functional

33. Project Interdependence (project) dT/dt dM/dt Project Functional

34. Types of Teams Functional Teams Lightweight Project Teams Heavyweight Project Teams Tiger Teams Hybrid Teams

35. Functional Dept Mgr Dept Mgr Dept Mgr Dept Mgr Subprojects Well defined Interfaces

36. Lightweight Projects Dept Mgr Dept Liason Dept Mgr Dept Mgr Dept Mgr Proj Mgr Dept Liason Dept Liason Dept Liason MSF/SOLID Team Structure

37. Heavyweight Projects Dept Mgr Dept Liason Dept Mgr Dept Mgr Dept Mgr Proj Mgr Dept Liason Dept Liason Dept Liason

38. Tiger Teams Dept Mgr Dept Liason Dept Mgr Dept Mgr Dept Mgr Proj Mgr Dept Liason Dept Liason Dept Liason

39. Hybrid Projects Dept Mgr Dept Liason Dept Mgr Dept Mgr Dept Mgr Proj Mgr Dept Liason Dept Liason Dept Liason

40. LGC Pre-Reorg Dept Liason Dept Mgr Dept Mgr Proj Mgr Dept Liason Dept Liason Dept Liason Testing, User Education, Logistics Development, Product Geoscientists

41. Project vs. Functional Project Functional Lightweight Heavyweight Tiger Teams

42. 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.

43. Katz and Allen Study of Office Communication

44. Probability of Communication D P

45. Communication Findings Project influence (P) is typically greater than Department influence (D) Communication Types Type ICoordinate Work Type IIMaintain Knowledge Type IIIPromote Creativity Project communication is most often Type I, Functional communication is Type II or Type III

46. 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

47. How does this relate to Landmark? Classic Unix Products dT/dtLow dM/dtMed Function Med Project Med dT/dt dM/dt Project

48. How does this relate to Landmark? New Paradigm dT/dtHigh dM/dtHigh Function Med Project Med dT/dt dM/dt Mission Impossible Mission Impossible

49. 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

50. 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

51. Functional view of the Matrix

52. 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 oneand thats much harder to reckon with. They (the functional and project mangers) must understand that they are complimenting each other, not competing

53. Roussel: 3 rd 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.

54. 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 cant reach a decision, make sure that the Escalation path is efficient and well defined

55. 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"

60. Questions?