Find out about future leadership trends of corporates. Learn how matrix organisations and futuristic leadership may impact decision making skills of corporates, with tips and best practices to improve them.
Imagine a world where work is no longer defined by jobs, the workplace isn’t a specific place, many of the important workers aren’t traditional employees and leadership isn’t determined by the organization chart?
Well, we are in the middle of this change now!
Does it sound futuristic and intriguing at the same time? Then this post is for you!
Let’s explore here on the concept of matrix hierarchy which is operating currently in majority of the companies. We will also look at the global leadership structure trends for 2023 and beyond, and how they affect decision making skills in top leadership of corporates.
Many of us know what a matrix hierarchy structure is. But for the purposes of a context for this post, lets explain a bit on how it operates.
Matrix hierarchy or structure is a type of organizational structure where employees report to more than one manager, usually based on different dimensions such as function, product, region or a project.
For example, a marketing manager in a matrix organization may report to both the head of marketing and the head of a specific product line. This way, the organization leverages the expertise and resources of different managers and teams to achieve its goals.
Whilst matrix hierarchy is one of the most common organisation structure in most of the companies and has its advantages over traditional hierarchical structures, it also comes with its own set of challenges.
Advantages of Matrix hierarchy:
It allows for more flexibility and adaptability to changing market conditions and customer needs.
It fosters cross-functional collaboration and innovation among employees and managers.
It enables faster and more effective communication and coordination across the organization.
It provides more opportunities for employee development and career growth.
Downsides of matrix hierarchy structure impacts decision making in top leadership of corporates, such as:
It creates role ambiguity and conflict among employees and managers who have to deal with multiple reporting lines and expectations.
It increases the complexity and workload of decision making due to the involvement of multiple stakeholders and perspectives.
It requires more time and effort to build trust and alignment among managers and teams who have different goals and interests.
It demands more skills and competencies from managers and leaders who have to manage multiple dimensions and relationships.
After COVID-19 and with the massive increase of digital advancements, Corporate hierarchy structure is undergoing some significant shifts in response to the changing business environments and customer needs.
These incremental shifts may shape the future of corporate hierarchy structure in 2023 and beyond in a dramatic way.
Some of the insights that the future could hold on this are:
Flattening organization structures: Organizations are likely to adopt flatter, non-hierarchical structures that focuses on empowering employees to make decisions and take ownership of their work at their end. Leaders are expected to then act as facilitators rather than controllers, provide guidance and support rather than directives.
Increasing need to develop ourselves & others: Leaders will need to invest in their own learning and development as well as that of their employees. They will need to foster a culture of continuous learning and feedback that enables everyone to grow and improve their skills and capabilities.
Approaching the “Talent Cliff”: Organizations are expected to face a shortage of talent due to demographic changes, skills gaps and high turnover rates. And therefore leaders will need to attract, retain and engage top talent by offering meaningful work, flexible work arrangements, competitive compensation, recognition and career opportunities.
Striving for gender balance: Organizations will need to strive to achieve gender balance at all levels of leadership by promoting diversity, equity and inclusion initiatives. Leaders will be required to challenge gender stereotypes, biases and barriers that prevent women from advancing in their careers. (Good news for our female workforce!)
Shifting focus to the development of soft skills: Organizations will value soft skills such as communication, collaboration, creativity, critical thinking, emotional intelligence, adaptability and resilience more than hard skills of technical knowledge or expertise. Leaders will need to develop these soft skills in themselves and also in their employees to cope with the increasing complexity and uncertainty of the business environment.
While this change of leadership from an authoritarian style (matrix hierarchy structure) into a more futuristic and agile style is in transition, there could be implications of this on decision making in top corporate leadership.
A change which is expected to take a few years from now to fully settle and stabilize, this transition of leadership style presents both challenges and opportunities for improving the quality and effectiveness of decisions making at leadership level.
Some of the probable impacts of this transition could be:
More information and perspectives: Authoritarian leadership (matrix hierarchy) and futuristic agile leadership style can help to increase the amount and diversity of information and perspectives available in any decision making process. Whilst this can enhance the creativity and innovation of decisions but also can increase the risk of information overload and analysis paralysis.
More collaboration and participation: The transition process may encourage more collaboration and participation among employees and managers for any decision making process and can improve the buy-in and commitment of decisions too. But it can also increase the potential for conflict and disagreement between parties comprising of old-school and futuristic leaders.
More agility and responsiveness: The decision making process might become more agile and responsive and this can then help the organization to adapt quickly and effectively to changing market conditions and customer needs. But it may also require more flexibility and tolerance for ambiguity and uncertainty which may arise with the old-school leaders struggling to transition into futuristic leadership style.
This then brings us to the key question towards improvement,
How to improve Decision Making Skills for top corporate leadership in 2023 and beyond?
If you are a leader undergoing this transition or are someone who wants to improve your decision making skills in such a complex dynamics of old-school vs new age leaders of corporates, you need to:
Clarify your goals and priorities: Before making any decision, you need to define your goals and priorities clearly. What are you trying to achieve? What are the criteria for success? What are the trade-offs and constraints? Having a clear vision and direction will then help you to focus on your decision making process and also avoid undue conflicts and distractions from parties.
Gather relevant data and evidence: To make informed and rational decisions, you need to gather relevant data and evidence from various sources and bring it to the table. Most of the organisation struggle with this part for one reason that they are unable to present an actionable data. This is when you will then need to verify the accuracy and reliability of the data and evidence, and if required analyze them critically. You also need to be aware of your own biases and assumptions and challenge them with facts and logic to keep it clear of ambiguities in the decision making process.
Seek diverse opinions and feedback: To make comprehensive and balanced decisions, you need to seek diverse opinions and feedback from different stakeholders such as your managers, peers, subordinates, customers, suppliers, etc. You need to listen actively and respectfully to their views and concerns, and make an effort to incorporate them into your decision making process. You also need to be open to constructive criticism and suggestions for improvement (easier said than done, isn’t it?)
Evaluate alternatives and consequences: To make optimal and effective decisions, you need to evaluate alternatives and consequences very carefully. And compare pros and cons of each alternative, assess the potential impact of each consequence, consider the short-term and long-term implications of your decisions, and look at how they align with your goals and priorities.
Communicate and implement decisions: To make successful and impactful decisions, you need to communicate them effectively with all your folks and leadership team to make sure they clearly understand. At the same time, come up with a clear and concise implementation plan and share with your folks. You need to explain the rationale and benefits of your decisions clearly and address any questions or objections. Where necessary, it will be best to assign roles and responsibilities for executing your decisions and monitor the progress and outcomes eventually.
These are some of the possible ways that corporate hierarchy structure and leadership style may evolve in 2023 and beyond.
However, there is no one-size-fits-all solution for every organization.
Each organization will have to find the best balance between their stability and flexibility, efficiency and innovation and hierarchy and empowerment that suits its goals and culture.
So, are you ready to lead and decide in a ‘boundary-less world’?
If you or your folks in your network are undergoing a similar transition from old-school matrix structure and authoritarian leadership into a more empowering and agile leadership, feel free to share this post with them.
Never know, any of the tips outlined above might be useful for them!
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