The matrix organization behind the success of Fiat Chrysler Automobiles
It is hard to imagine a multinational and a multi-product company nowadays that wouldn't employ some kind of a two-boss structure. The matrix organizations, as such structures are called, have been credited with allowing companies to pursue multiple goals and better able to adapt to challenges in the local markets, while maintaining effective coordination on the global level. But it is not easy to make the matrix work. There were many companies that tried and failed at matrix management. Fiat Chrysler Automobiles is not one of them. The company has managed to make the matrix work and this organizational structure has allowed FCA to become more competitive and achieve exceptional performance in a tough market.
This recent article offers a great insight into the role of the matrix in the success of Fiat Chrysler and its CEO Sergio Marchionne. It is yet another proof, that when done right, the matrix structure is the optimal solution for a company, which must excel in being both global and local in order to survive.