The technical matrix organisation

Background:
An electro-technical installation company employs a number of project leaders whose main task it is to carry out projects with customers. Beside that they have the additional task to maintain the commercial contacts with their relations. In other words: Relation management. The acquisition of new business is taken care of by two acquisition managers. These acquisition managers are on call to be used by the project leaders as support to their tasks in relation management.
 
Problem:
According to the project leaders they have too little time for relation management: they simply don’t get round to doing it. Far too busy with the existing assignments. Consequently the company regularly loses jobs to the competition without so much as noticing that the client was in the market for a new assignment. An additional matter is the fact that the company regularly carries out assignments that are insufficiently profitable. Management acknowledges this problem: In an intensive strategic trajectory that is followed with external advisors it is tried to find a solution.
Strategic thinking, however, is not yet very successful and requires a lot of time. Meanwhile there is no reaction to the actual commercial situation: The company continues to lose contracts without being aware in advance that these contracts were up for grabs and accepts with regularity unprofitable assignments with which one is very busy. Management says: “First the strategic concept, then there is time for other issues.”
 
The analysis:
Management has its head in the clouds; creates theoretical solutions, but needs a lot of time for that; is not capable of quickly bringing about changes in an unwanted and pressing situation. So they are managing only horizontally.
 
Advice:
  • Quickly address the commercial attitude of the project leaders: ensure a structure in the sales organization. Bear in mind that a matrix organization has a difficult chain of command. It means that, as a manager, you have to invest a lot in such an organization.
  • Put emergency measures in place so that you do no longer miss out on interesting contracts without you knowing about them.
  • Allow yourself to be coached and guided by external advisors who know their business; both organisational and commercial and above all pragmatic. Consider the (temporary) employment of an interim-sales manager.
  • Get an advance insight into the margins that you can realize with various projects. A clear pre-calculation is essential. Make choices: Accept only contracts that satisfy a minimum margin norm. Choose knowingly those assignments that you will NOT carry out.
  • Park the strategy project somewhere or finish it quickly. You need your energy elsewhere.
 Jan Boeren
 

Diez iez Vietnam

This book is about the story of life of prof. Adrie van Gelderen. I met him on one of my PUM missions where he was a local representative of PUM. Adrie told me he had a manuscript of his story of life and asked me my opinion about publishing it. I promised to read it and give my comments. And indeed I did: I told him that his book would not be a profitable cash cow, however, publishing your own literary thoughts will give tremendous satisfaction, it's fun to do and it's not expensive at all.

Now Adrie was seriously ill at that time and unfortunately he passed away before we could take his book into production. So we, being Adrie's friends, decided to publish the book posthumously and donate all the refunds to his 'affiliate-foundation'.

'Diez iez Vietnam!'  is written in English. A copy can be ordered by clicking the link.