The matrix is not the “end point” for complex firms (new article)

One firm that I have followed for many years is FMC (now TechnicFMC).

It’s a world leader in subsea technologies – in particular, valve trees that are placed on the sea bed as part of large oilfield installations. It has its headquarters here in Norway, but is represented on all continents and serves most of the large oil companies in the world.

I was interested in FMC because it is not a technology leader, but a firm that has used organization design to create a competitive advantage.

Last year, I was given the chance to interview some of the top managers in the firm and write an article about how the firm is organized. I also went back to earlier organization charts to see how the organization has evolved between 2001 and 2016.

I found that the organization evolved in three phases: FMC first had a geographical structure, then adopted a matrix structure in 2011. But it abandoned the matrix in favor of an alternative (yet still multidimensional) structure in 2015.

So, as opposed to what some people claim – I found that the matrix is not the end point. It is possible to simplify the matrix by removing the dual reporting lines (If you have read my book, the current structure of FMC is fairly similar to what I call the “modular organization”.)

The article was published last week in the Journal of Organization Design. You can read it online (or download the pdf) here.

In the video below, I briefly summarize the article (it lasts for about 3 minutes).