The matrix as a transitory form: The evolution of FMC Technologies 2001–2016

Introduction: The matrix structure is sometimes presented as an inevitable “end point” for organizations that must adapt to an increasingly complex business environment. However, observations of the structure of firms do not always confirm this view. Case description: The paper describes the evolution of FMC Subsea, a large division of the global technology firm FMC Technologies (now TechnipFMC). Discussion and evaluation: During the 2001–2016 time period, the firm’s organizational structure underwent three significant changes. The firm was originally organized by geography. In 2011, it introduced global product units, which resulted in dual reporting lines (i.e., a matrix structure) for some regional managers. However, in 2015, it separated the product lines from the regional units, thereby eliminating the need for dual reporting. Conclusion: This example suggests that the matrix structure may sometimes be a transitory form that eventually gives way to a simpler—yet still multidimensional—structure.publishedVersio

Creating dynamic capabilities The role of modular product and process architectures

SIGLEAvailable from British Library Document Supply Centre- DSC:DN057164 / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Operationalizing the concept of competing functional demands

A number of authors have described the challenge of managing organizations that are subject to conflicting functional demands. These authors belong to different sub-disciplines of the field, and have demonstrated that conflicting external demands may result in inconsistent strategies, organizational structures, and management practices. Although the issue is widely recognized, the concept of “conflicting functional demands” has rarely been operationalized. The lack of operationalization complicates the interpretation of existing research. It also leads to weak prescriptions for practice. The question raised in this paper is thus how we may operationalize this concept and assess it empirically. The key proposal is to separate between function and structure (or ends and means) and to define functional conflict as a negative interdependency between a particular function (e.g., a goal or requirement) and a structural element (e.g., an organizational unit). This reconceptualization suggests an alternative manner in which to test dualistic models that contain two opposing factors, such as exploration vs. exploitation, related vs. unrelated diversification, or broad vs. narrow strategy

Creating dynamic capabilities

This research examines how companies adapt to more unpredictable environments by developing dynamic capabilities that help sustain innovation and change. The key explanatory construct is modular architecture - the intentional decomposition of systems (products or processes) into relatively independent sub-units with standard interfaces. The dissertation is structured as three semi-independent papers plus an introduction and a literature review. The literature review describes current theories of modular systems and discusses the similarities and differences to related concepts such as nearly decomposable systems, loose coupling, and vertical decomposition. The literature review identifies three gaps in the current literature. First, there has been a limited degree of theorising on the concept outside the field of technology management. Second, the current literature is based largely on anecdotal case studies and there is little quantitative evidence of the strategic value of modularity. Finally, there is a lack of understanding concerning the implementation of modular architectures. The first paper generalises from product to organisation design and derives five principles for modular organisational architectures. A hypothetical example is developed to illustrate how a large home appliances company might apply these principles to create a process platform consisting of reconfigurable building blocks. The chapter also proposes some extensions of current theory to more realistically adopt modularity concepts in organisation design. The second paper is based on a study that explores the current product and process architectures at three leading manufacturers of vacuum cleaners. It identifies some of the key barriers to increased flexibility among companies in mature industries. It also considers the relative value of modularity for established companies pursuing incremental innovation versus entrepreneurial companies introducing more radical innovations. The third paper presents the results from a survey questionnaire study of companies in the home appliances industry in the UK. and US. The relationship between market context, product and process architecture, strategic flexibility and firm performance is examined by means of structural equations modelling. The results show a positive relationship between modular product architectures and performance, with product model variety as a mediating variable. The thesis makes the following contributions to the existing literature: It complements extant theorising by generalising modular principles to organisation design. It contributes to methodology by developing a questionnaire for assessing modularity in product and process design. Finally, it provides one of the first empirical studies of the effects of modularity on strategic flexibility and firm performance.</p

Organizational characteristics and personnel managers' job applicant preferences

Personnel managers in different firms, industries and countries do not hold the same preferences for job applicant attributes. This research was aimed at understanding the cause of some of these differences. Survey questionnaires were sent to personnel managers in Norway (N = 195) and Quebec (N = 172). The personnel managers were asked to rate: (1) aspects related to their firms' organizational characteristics (business environment, strategy, and structure), and (2) the importance of different personality traits for applicants to managerial and professional positions. Consistent with earlier research (Rynes & Gerhart, 1990) the results indicate that preferences for different applicant attributes represent shared perceptions due to common organizational membership. These preferences are to some degree related to company strategy, organizational structure and national culture. In general, it was found that personnel managers currently seek candidates who can adapt to change and generate new ideas. The results are discussed in light of theories from industrial/organizational and cross-cultural psychology, and suggestions for further research are offered

A Process Design Approach to Managing Interdependencies in Complex Organizations Paper submitted to the 2005 Academy of Management Meeting

Working paper in development, please do not quote without permission from the authors

Creating dynamic capabilities

This research examines how companies adapt to more unpredictable environments by developing dynamic capabilities that help sustain innovation and change. The key explanatory construct is modular architecture - the intentional decomposition of systems (products or processes) into relatively independent sub-units with standard interfaces. The dissertation is structured as three semi-independent papers plus an introduction and a literature review. The literature review describes current theories of modular systems and discusses the similarities and differences to related concepts such as nearly decomposable systems, loose coupling, and vertical decomposition. The literature review identifies three gaps in the current literature. First, there has been a limited degree of theorising on the concept outside the field of technology management. Second, the current literature is based largely on anecdotal case studies and there is little quantitative evidence of the strategic value of modularity. Finally, there is a lack of understanding concerning the implementation of modular architectures. The first paper generalises from product to organisation design and derives five principles for modular organisational architectures. A hypothetical example is developed to illustrate how a large home appliances company might apply these principles to create a process platform consisting of reconfigurable building blocks. The chapter also proposes some extensions of current theory to more realistically adopt modularity concepts in organisation design. The second paper is based on a study that explores the current product and process architectures at three leading manufacturers of vacuum cleaners. It identifies some of the key barriers to increased flexibility among companies in mature industries. It also considers the relative value of modularity for established companies pursuing incremental innovation versus entrepreneurial companies introducing more radical innovations. The third paper presents the results from a survey questionnaire study of companies in the home appliances industry in the UK. and US. The relationship between market context, product and process architecture, strategic flexibility and firm performance is examined by means of structural equations modelling. The results show a positive relationship between modular product architectures and performance, with product model variety as a mediating variable. The thesis makes the following contributions to the existing literature: It complements extant theorising by generalising modular principles to organisation design. It contributes to methodology by developing a questionnaire for assessing modularity in product and process design. Finally, it provides one of the first empirical studies of the effects of modularity on strategic flexibility and firm performance.</p

Organization design challenges: results from a practitioner survey

We conducted a survey to identify the most important challenges faced by consultants who support managers in re-designing their organizations. The results indicate that the most frequently encountered challenges are (1) creating realistic estimates regarding the time and resources required to complete the project, (2) understanding patterns of collaboration or information exchange across units in the organization, (3) handling political aspects of the re-design process and helping participants “see the bigger picture” (as opposed to “protecting their own turf”), and (4) evaluating whether the new organizational model has had the intended effects. We discuss the implications of the study for both practitioners and scholars