Matrixed product development - when does it work?

Many technology companies and specifically current day internet companies use a matrix structure in the product development organization. Getting any org matrix to work right is an issue in itself but the problem is especially hard if there is no de-facto "captain of the matrix".

In companies such as ATT of the past, the product manager was generally recognized as the first amongst equals. At Microsoft it was the program manager. At Google (I hear) it is the engineering manager / architect. I can see any of these working as long as the culture of the company recognizes the captain.

While many technology companies use the matrix, most don't (or are not able to) set up a culture that clearly makes one function "own" the product and the product development process. When tough decisions subsequently need to be made, turf battles, anger and the inevitable initiatives to improve team-work ensue. Product quality and delivery eventually suffer.

It is hardly surprising then that in their respective era, companies with clearly defined leadership (ATT, Microsoft, Google) produced more successful products than their rivals.

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