Is matrix management to blame for problems at UK Customs & Excise?
When HMRC, a UK government department lost computer discs carrying the personal data of 25m people last year, the incident was blamed on mistakes by junior officials. But a report just published focuses its criticism not so much on individuals as on the “unsuitable organizational design” of HMRC.
“matrix management” led to lack of accountability, ownership of issues and clarity of vision.
“proliferation of committees” and “the complex management structure”.
A system of 37 business units created huge duplication, no common direction and no clear lines of accountability up to board level.
So it seems HM Revenue & Customs experienced all the typical symptoms of a mismanaged matrix – (see our survey below left) I wonder if they got any training in how to operate the new system?
It isn’t the structure that makes the decisions and the mistakes – certainly not the one of losing data disks, it is the way people work together – is lack of security acceptable in any organizational form?
I also wonder how many of these symptoms existed before the merger and the more complex organization structure – the matrix makes a handy scapegoat when things go wrong.
Does your matrix structure get the blame when things go wrong, is it really the structure?
In today’s complex organizations, some degree of matrixing is inevitable. The problem is that the more matrixing you do, the less people can get their heads around your desired outcomes and the less they feel able to actually influence those outcomes.
I routinely work with companies that are matrixing across five organizational dimensions. They are trying to optimize far too many variables and are loosing their people along the way. They loose sight of creating a functional whole.
People just cant get their heads around what they are supposed to do. Is that the people? Is that the matrix? Does it matter? As leaders, we have to put people is the best possible situation to be successful. If people are struggling with the matrix, I am inclined to look at the matrix first and find a way to enable the people.
While chatting with my brother today, he mentioned that he’s doing some research on matrix management. Well, even though I’m a strategic consultant by trade, I didn’t really know what that was to be honest. So, I did a bit of digging while we watched the British Open and Tour De France.
Thanks for your site. I did grab some quotes and links, and hope that you’ll send more along as I have subscribed.