if there is any one key
to operating a successful matrix organization, it seems to be in being sure that the project side of the organization is strong and can operate as a mini - business within the larger corporation. This mean it needs to have a bottom line focus and decision making capability in the true sense of a small business. All too often in matrix organizations, the so-called functional or corporate side of the matrix that is the engineering function the marketing function and other main functions of the corporation and more powerful than the project leaders. As a result, instead of feeling like a group of small business that is constantly changing the organization feels like a large functional bureaucracy that asks its functional experts to work on particular projects. the key to strengthening the projects is to give the project leaders reward power and budget power for the individuals and operations that are part of their project.
Overall we have been able to identify four viable approaches to creating large organizations that have some of the advantages and feel of small organizations
before we consider where these large/small approaches fit best, we need to consider how small organizations can be designed to operate more like large ones.