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?
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)
The Process of Innovation Technology Market Innovation Input Output
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.
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
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 Project Either Mission Impossibl e Mission Impossibl e Functional
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. D1D2D3D4D5 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 Project Functional Either Matrix
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.
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
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/dtLow dM/dtMed Function Med Project Med dT/dt dM/dt Project
How does this relate to Landmark? New Paradigm dT/dtHigh dM/dtHigh Function Med Project Med dT/dt dM/dt Mission Impossible Mission Impossible
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
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
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.
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
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"