Influential Article Review - The History of FMC Technologies: A Transitional Matrix

Abstract

This paper examines innovation. We present insights from a highly influential paper. Here are the highlights from this paper: The matrix structure is sometimes presented as an inevitable “end point” for organizations that must adapt to an increasingly complex business environment. However, observations of the structure of firms do not always confirm this view. The paper describes the evolution of FMC Subsea, a large division of the global technology firm FMC Technologies (now TechnipFMC). During the 2001– 2016 time period, the firm’s organizational structure underwent three significant changes. The firm was originally organized by geography. In 2011, it introduced global product units, which resulted in dual reporting lines (i.e., a matrix structure) for some regional managers. However, in 2015, it separated the product lines from the regional units, thereby eliminating the need for dual reporting. This example suggests that the matrix structure may sometimes be a transitory form that eventually gives way to a simpler—yet still multidimensional—structure. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.