Issues Addressed

Poor Communication Across Teams Inefficient Resource Allocation Misalignment of Team Goals

When to Use

Reorganizing Team Structures Improving Cross-Functional Collaboration Aligning Teams with Strategic Goals

Functional Vs. Matrix Organization

A comparison of functional and matrix organizational structures using the McKinsey 7S Model to optimize team alignment, communication, and performance.

Origins

The McKinsey 7S Model was developed in the 1980s to analyze organizational effectiveness.

Functional and matrix structures have been used in various industries to address different organizational needs.

Adopted by companies to improve communication and resource management across departments.

Implementation Details

Understanding Functional and Matrix Structures

Functional Organization: Teams are divided based on specialized functions (e.g., engineering, marketing). This structure promotes deep expertise but can lead to silos.

Matrix Organization: Combines functional and project-based structures, allowing for more dynamic resource allocation and cross-functional collaboration.

McKinsey 7S Model

The 7S Model evaluates seven interdependent elements: Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff. It helps organizations assess the alignment of their structure with strategic goals.

Best Practices

Clearly define roles and responsibilities to avoid confusion.
Foster open communication channels across teams.
Regularly review and adjust structures to align with changing business needs.

Implementation Steps

1

Assess current organizational structure using the McKinsey 7S Model
2

Identify areas for improvement in communication and resource allocation
3

Define clear roles and responsibilities for each team
4

Implement changes to align structure with strategic goals
5

Monitor and adjust the structure as needed based on feedback

Available Tools

OrgVue Lucidchart Microsoft Visio Trello Asana

Usage

Usage data is only available to HyperFormation members

Benefits & Considerations

Benefits

enhanced cross-functional collaboration
better resource management
improved strategic alignment

Considerations

requires ongoing evaluation and adjustment
may lead to role confusion if not clearly defined
can be complex to implement in large organizations