Organisational behaviour
Matrix management
A matrix is an organisational structure through which people report to two or more bosses.
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Matrix management vs The risk management matrix
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Strategy
The risk management matrix
The risk management matrix is another alternative to the Suns & Clouds, though, as with the composite risk index of [The composite risk index and the 5×5 risk matrix](../the-composite-risk-index-and-the-55-risk-matrix--97a9bc04/index.md), it looks only at risk, not.
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Use this when.
To coordinate work that genuinely depends on more than one organisational dimension.
Use the matrix as a call to action: identify how transfer, mitigation or redesign could make a strategy more robust.
Extracted signals
Strengths, limits, and pitfalls.
Matrix management
- Write down decision rights and escalation paths for the work that crosses dimensions. A matrix becomes workable when people know who decides, what consultation is required and how disagreement is resolved.
- The main advantages are cross firm delivery, reduced silos, flexible response and broader management development. The recurring costs are conflicting direction, overloaded managers, meeting volume, slow decisions and diffuse accountability.
- Design from the work. Identify the few interdependencies that require shared authority. For each recurring decision, specify who recommends, decides, contributes, executes and resolves escalation. Make the primary reporting relationship explicit where the matrix is unbalanced, but do not reduce dotted line roles to ceremonial consultation.
Watch for
- Do not use extra reporting lines as a substitute for strategic choices. An ungoverned matrix multiplies meetings, political bargaining and workload while leaving accountability unclear.
The risk management matrix
- For every severe exposure, separate what can change the event from what can reduce its consequence, then design the response accordingly.
- Assemble the material risks from strategy development. Define scales and evidence, then rate likelihood and value impact consistently. Add a manageability assessment that distinguishes prevention from consequence reduction.
- Plot manageability against impact and size each circle by likelihood.
Watch for
- Like the composite risk index and 5×5 risk matrix, this tool can produce a threat only conversation. Review opportunity and upside separately.
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Application bridge
Related templates.
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