Beyond the matrix: Alternatives for organizing complex firms
I have for a long time been interested how to organize complex firms with multiple types of sub-units (e.g., product units, geographical sales units, internal service providers, etc). I have worked in matrix-like organizations myself and felt the challenges of having to live with the ambiguity, conflict, and lack of clear direction that such structures create.
At the same time, few managers seem to know about alternative organizational forms (other than reverting to simpler, functional structures etc.). In a presentation I held yesterday at the Aarhus business school in Denmark, I discuss two alternatives to the matrix form: The front-back organization and the modular organization. This is also the topic of one of the chapters in the textbook that I am writing. The presentation is built on the so-called axiomatic design approach developed for the engineering sciences. Any comments are welcome!
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