Keys to Successful Matrix Management

Matrix management, in itself, is a breakthrough concept. In fact, there are a lot of organizations today that became successful when they implemented this management technique. However, there are also organizations that started it but failed. And eventually abandoned it in the end.

Looking at these scenarios, we can say that when you implement matrix management in your organisation, two things can happen – you either succeed or fail. And there?s nothing in between. The truth is, the effectiveness of matrix management lies in your hands and in your implementation. To ensure that you achieve your desired results, recognise these essential keys to successful matrix management.

Establish Performance Goals and Metrics

This should be done as soon as the team is formed, at the beginning of the year or during the process of setting organisational objectives. Whenever it is, the most important thing is that each team player understands the objectives and metrics to which their performances will be evaluated. This ensures that everyone is looking at the same set of objectives as they carry out their individual tasks.

Define Roles and Responsibilities

One pitfall of matrix management is its internal complexity. Awareness of this limitation teaches you to clearly define the roles and responsibilities of the team players up front. Basically, there are three principal sets of roles that should be explained vividly ? the matrix leader, matrix managers and the matrixed employees. It is important to discuss all the possible details on these roles, as well as their specific responsibilities, to keep track of each other?s participation in the projects of the organisation.

One effective tool to facilitate this discussion is through the RACI chart – Who is Responsible? Who is Accountable? Who should be Consulted? Who will Implement? With this, clarification of roles and responsibilities would be more efficient.

When roles are already clearly defined, each participant should review their job descriptions and key performance metrics. This is to make sure that the roles and responsibilities expected of you integrates consistently with your job in the organisation, as a whole.

Manage Deadlines

In matrix management, the employees report to several managers. They will likely have multiple deadlines to attend to and accomplish. There might even be conflicts from one deadline to another. Hence, each should learn how to schedule and prioritise their tasks. Time management and action programs should be incorporated to keep the grace under pressure.

Deliver Clear Communication

Another pitfall of matrix management is heightened conflict. To avoid unrealistic expectations, the matrix leaders and managers should communicate decisions and information clearly to their subordinates, vice versa. It would help if everyone will find time to meet regularly or send timely reports on progress.

Empower Diversity

Knowledge, working styles, opinions, skills and talents are diverse in a matrix organisation. Knowing this fact, each should understand, appreciate and empower the learning opportunities that this diversity presents. Trust is important. Respect to each other?s opinions is vital. And acknowledgement of differing viewpoints is crucial.

The impetus of matrix management is the same ? mobilise the organisation’s resources and skills to cope with the fast-paced changes in the environment. So, maximise the benefits of matrix management as you consider these essential keys to its successful implementation.

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Spreadsheet Woes – Burden in SOX Compliance and Other Regulations

End User Computing (EUC) or end User Developed Application (UDA) systems like spreadsheets used to be ideal ad-hoc solutions for data processing and financial reporting. But those days are long gone.

Today, due to regulations like the:

  • Sarbanes-Oxley (SOX) Act,
  • Dodd-Frank Act,
  • IFRS (International Financial Reporting Standards),
  • E.U. Data Protection Directive,
  • Basel II,
  • NAIC Model Audit Rules,
  • FAS 157,
  • yes, there?s more ? and counting

a company can be bogged down when it tries to comply with such regulations while maintaining spreadsheet-reliant financial and information systems.

In an age where regulatory compliance have become part of the norm, companies need to enforce more stringent control measures like version control, access control, testing, reconciliation, and many others, in order to pass audits and to ensure that their spreadsheets are giving them only accurate and reliable information.

Now, the problem is, these control measures aren’t exactly tailor-made for a spreadsheet environment. While yes, it is possible to set up a spreadsheet and EUC control environment that utilises best practices, this is a potentially expensive, laborious, and time-consuming exercise, and even then, the system will still not be as foolproof or efficient as the regulations call for.

Testing and reconciliation alone can cost a significant amount of time and money to be effective:

  1. It requires multiple testers who need to test spreadsheets down to the cell level.
  2. Testers will have to deal with terribly disorganized and complicated spreadsheet systems that typically involve single cells being fed information by other cells in other sheets, which in turn may be found in other workbooks, or in another folder.
  3. Each month, an organisation may have new spreadsheets with new links, new macros, new formulas, new locations, and hence new objects to test.
  4. Spreadsheets rarely come with any kind of supporting documentation and version control, further hampering the verification process.
  5. Because Windows won’t allow you to open two Excel files with the same name simultaneously and because a succession of monthly-revised spreadsheets separated by mere folders but still bearing the same name is common in spreadsheet systems, it would be difficult to compare one spreadsheet with any of its older versions.

But testing and reconciliation are just two of the many activities that make regulatory compliance terribly tedious for a spreadsheet-reliant organisation. Therefore, the sheer intricacy of spreadsheet systems make examining and maintaining them next to impossible.

On the other hand, you can’t afford not to take these regulations seriously. Non-compliance with regulatory mandates can have dire consequences, not the least of which is the loss of investor confidence. And when investors start to doubt the management’s capability, customers will start to walk away too. Now that is a loss your competitors will only be too happy to gain.

Learn more about our server application solutions and discover a better way to comply with regulations.

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Still looking for a Way to Consolidate Excel Spreadsheets?


Disadvantages of Spreadsheets


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Spreadsheet Woes – Limited features for easy adoption of a control framework


Spreadsheet woes – Burden in SOX Compliance and other Regulations


Spreadsheet Risk Issues


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Why Spreadsheets can send the pillars of Solvency II crashing down

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A Definitive List of the Business Benefits of Cloud Computing ? Part 3

Strengthens business continuity/disaster recovery capabilities

Today’s business landscape calls for companies to have reliable business continuity and disaster recovery capabilities. After all, when the system goes down, customers and even employees would rarely ask ‘why‘ or ‘what happened‘ but instead go directly to the ‘how soon can we get back up‘ part.

So unless they’ve been struck by the same unforeseen disaster your business is also experiencing, a couple of hours downtime is plenty enough for most of these people. What’s worse is when they simply don’t wait until they get access again and just go to other providers that can offer the same services. In short, your inability to provide continuous IT and business services could translate to lost opportunities which your competition would only be too willing to gain. And that’s not even counting the possibility of losing essential data and other potential negative impact that critical IT failure can bring about.

The answer to avoiding such a scenario is of course, having a sound business continuity and disaster recovery plan in place. But this is actually easier said than done.

Traditionally, setting up a business continuity plan entailed some tedious procedures in addition to very costly infrastructure. We’re talking here about acquiring and maintaining practically a replication of the hardware infrastructure and environments currently existing for business-critical systems and data. Note that these mirror systems should be set-up, housed, and maintained in a remote facility or location.

Making the deployment even more complex is the constant need to update the data in storage as well as keep software applications in sync between the system in use and the one on standby mode. This process would involve the physical transfer of data and syncing of applications, which is cumbersome and again, expensive.

While large enterprises would not even think twice about having to spend so much to ensure that operations would never come to a grinding halt, most small and mid-sized organisations would not have the required financial means for them to even start considering this option. Often, the bulk of their disaster recovery plan would simply consist of some tape backups, and a lot of hoping that they would never have to suffer from any outage or IT failure.

But all that can be changed with the arrival of cloud computing.

A cloud strategy offers an affordable solution for business continuity and disaster recovery for SMBs with limited resources and even big companies trying to minimise expenses by looking for alternative options.

A reliable service provider would already have the required infrastructure and software vital to a viable BC/DR plan and complete with the appropriate security measures. Organisations need not spend upfront for these facilities, but get to benefit from having updated data backup and a virtualised mirror system that would allow them to quickly get back up in the event of an outage or catastrophic disaster.

When looking to the cloud for a cost-effective BC/DR plan however, it’s worth keeping in mind that not all cloud providers are created equal. That’s why businesses also have many important factors to take into account before signing cloud contracts.

Yes, provision for continuity and and taking necessary precautions against outages are inherent in the cloud service itself, but you’d be surprised how many of these providers don’t actually take responsibility for service interruption. To give organisations some assurance of the cloud company’s capacity for continued service, contracts should stipulate availability guarantees and liability for downtime that the provider is willing to answer for.

Once these relevant issues are ironed out however, it’s easy for business to see how cloud-based data storage and computing can significantly lower the costs involved for SMB BC/DR while greatly improving efficiency, mobility, and collaboration capabilities.

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Denizon’s Business Continuity Services

Disruptions to business operations can be as catastrophic as a Hurricane Katrina or a 9/11 or as relatively trivial as a minor power outage or a planned shutdown. What ever the gravity, scope and duration the disruption has, your company should be able to handle each situation so that you can declare “business as usual” and really mean it. (more…)

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