Leadership Through Decision Making In Matrix Organizations

Leading at Light Speed is a powerful leadership book by Eric Douglas for businesses, public agencies, and nonprofits revealing the 10 Quantum Leaps to build trust, spark innovation, and create a high-performing organization.

Chapter Four describes how to Manage Decisions Well.

Think of decisions as the quanta of organizational behavior, much as photons are the quanta of light. Many small decisions go together to form a larger process. In a matrix organization, many people take part in delivering a product or a service. However, specific components of the process as well as specific decisions still rest upon the shoulders of one person. A team leader has responsibility for the project budget. Budget reports are the responsibility of the finance manager. It is the responsibility of the chief operating officer to assure that each team has the right balance of human resources. The responsibility of business development belongs to the CEO of the organization. They all need to be working together and communicating to assure decisions are coordinated.

In order to breed trust, a matrix organization requires clarity when it comes to authority and functional roles. Power is status. Authority is status. A buildup of gossip and distrust runs rampant when people are oriented around functional roles and authority. To build trust, effective leaders keep the noise in check by focusing people on making good decisions – within the context of clearly defined roles and responsibilities. They target on conveying which decisions belong to each level. They make it clear that participating in decisions is the source of status. They arm their employees with the tools to communicate effectively amid the intersecting layers of authority and responsibility – and to address conflicts when they occur.

Most importantly, they continually refer people back to the strategic focus for help in making their decisions. They ensure that individuals’ decisions are grounded in purpose, values and vision. The leaders of matrix organizations implement the necessary communication in order to build trusted relationships inter-departmentally. In-person communication can be expensive and time-consuming – and thus tempting targets to cut. As one who has worked in many matrix organizations, let me assure you that it would be a mistake not to make this investment. This may seem challenging – and it is. But if you stick to it, you’ll be building trust. And by doing so, you’ll discover your work becomes much easier. Whether you’re a global behemoth, a small start-up or anything in between, the only sure path to success is to be found by investing in trust-building.

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