Organization structures are as important to competitiveness as strategy because structures enable both performance and learning. Yet, organization design factors and considerations are often overlooked. The matrix structure and similar types of adhocracies have the potential to transform organizational learning and thereby create a continuous acceleration of innovation. Unlike some adhocracies, the matrix structure focuses on performance and learning. Because of deficiencies in organization culture and management skills, the matrix structure has been less than fully effective. This paper seeks to clarify the issues that continue to block organizational competitiveness as they relate to performance and learning in matrix structures.
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