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The Power of Matrix Management 2.0 – Gaining Market Leadership

Operating a Matrix Organization can be a challenging task. Complex geographical structures, cultural barriers, functional divides, conflicting barriers, and management silos abound.

Matrices are often necessary though this may create uncomfortable ambiguity for employees. Most employees in Matrix Organizations are found to be not terribly engaged with their jobs. Engagement is defined as involvement in and enthusiasm for work. When there are less involvement and enthusiasm, this could have a significant impact on organizational productivity and eventually, to the company’s bottom line.

As a leader, it is our task to respond. We need to respond to this complexity to better operate a Matrix Organization. We need to respond to the global challenges by maximizing the power of a Matrix Organization.

What is Matrix Management 2.0

Matrix Management 2.0 is a state-of-the-art Integrated Management System for Matrix Organizations. It is designed to improve how companies lead, manage, and work in a two-dimensional matrix. The Matrix Management 2.0 shifts the focus from the vertical dimension to the horizontal. This is where our business runs and where we align with our customers.


Learning The AEIOC Outcomes

With the implementation of Matrix Management 2.0, result-based outcomes are achieved — The AEIOC Outcomes.


Alignment is achieved when the organization is focused on its external customers and on executing its strategic plan.


A Matrix Organization is said to be empowered when its people are confident in making decisions. Employees are actively helping their leaders and organization achieve its strategic vision.


When seamless processes and projects are created, a Matrix Organization is said to have achieved the highest level of integration between various functions and areas.


Level of optimization is achieved when the organization is effective and efficient in the use of its resources in achieving its goal.


Matrix Management 2.0 directs organizations to successfully focus on a culture of success and not on failure. When a Matrix Organization is proactive and constantly creating success, then the expected result-based outcome is achieved.

Significantly, when the 5 outcomes are achieved, the impact is dramatic. A Matrix Organization will see its organization achieving its strategic vision and leading in the global market, despite operating in a very competitive business environment.

Being able to successfully achieve the AEIOC outcomes would require our organization to adopt the Matrix Management 2.0 Maturity Model.

The Matrix Management 2.0 Maturity Model – Taking the Step

The Matrix Management 2.0 Maturity Model is a tool that provides a roadmap for adopting the new Matrix Management 2.0 system. The Model requires organizational leaders to engage in an ongoing process of reinventing the way they manage and lead. Through the MM 2.0 Maturity Model, organizations will be able to move from its current system to Matrix Management 2.0.

Currently, our organization may be operating under a Vertical Management 1.0 Management System. An organization with a Vertical Management 1.0 Management System has a culture that is focused on blame and failure. This is entirely opposite of what MM 2.0 Maturity Model is focused on. Migrating from Vertical Management 1.0 to Matrix Management 2.0 requires going through 5 Levels of Maturity.

Diagnosing what Level of Maturity the organization is operating at the organizational and leadership level is the initial first step. This is necessary for determining the strategy our organization needs to take to migrate to the new Matrix Management 2.0 Management System.

Interested in gaining more understanding of Matrix Management 2.0? You can learn more and download an editable PowerPoint about Matrix Management 2.0 here on the Flevy documents marketplace.

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About Joseph Robinson

Joseph Robinson is the Vice President of Strategy at Flevy. Flevy is the marketplace for best practices in business management. Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. The documents at Flevy (https://flevy.com) are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience. Flevy covers 200+ management topics, ranging from Digital Transformation to Growth Strategy to Lean Management. You can peruse a full list of management topics available on Flevy here. Prior to Flevy, Joseph worked as an Associate at BCG and holds an MBA from the Sloan School of Management at MIT. You can connect with Joseph on LinkedIn here.

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