How mastering the dynamics of a matrix structure can enable high-performance streaming in our Digital/Global Age

Mention the words “matrix organization” or “matrix structure” to anyone who works in one and you will never find a neutral response. Most people loathe the matrix, though some sing its praises. Why the different reactions and what is behind the strong emotions on both sides of this coin?

My purpose here is to make the matrix more transparent to both its critics and defenders and to point out how mastering the dynamics of a matrix structure can also enable high- performance streaming in today’s Digital/Global Age.

The Proxy Fight Between Procter & Gamble and Nelson Peltz’s Trian Partners

Procter & Gamble is in a fight with Nelson Peltz of the Trian Partners hedge fund for a seat on its board of directors. Peltz & Co. have proposed several changes in company structure and leadership to improve P&G’s short term return to shareholders. In this article Dave Hanna, a 16-year P&G veteran, analyzes two of Peltz’s proposed changes (1) restructuring P&G into a holding company with three business units and (2) scrapping P&G’s matrix structure and moving all functional resources into the business units. Dave points out how the proposed changes, while being part of Trian’s template for intervening in any company, would not fit with P&G’s business markets realities. He suggests a more holistic diagnosis of the specific P&G organization (as opposed to a cookie cutter recipe) and reshaping any misaligned elements is a more appropriate approach for long-term success.