Matrix Management: Benefits and Pitfalls

Matrix management brings together managers and employees from different departments to collaborate with each other towards the accomplishment of the organizational goals. As much as it is beneficial, matrix management also has limitations. Hence, companies should understand its benefits and pitfalls before implementing this management technique.

Benefits

The following are some of the advantages of matrix management:

Effective Communication of Information

Because of the hybrid nature of the matrix structure, it enables different departments to closely work together and communicate frequently in order to solve project issues. This leads to a proficient information exchange among leaders and subordinates. Consequently, it results to developed strategies, enhanced performance and quick productivity.

Efficient Use of Resources

Resources can be used efficiently in the organization since it can be shared among functions and projects. As the communication line is more open, the valuable knowledge and highly skilled resources are easily distributed within the organization.

Increased Motivation

The matrix structure promotes democracy. And with the employees working on a team, they are motivated to perform their duties better. The opinions and expertise of the employees are brought to the table and considered by the managers before they make decisions. This leads to employee satisfaction, empowerment and improved performance.

Flexibility

Since the employees communicate with each other more frequently, decision making becomes speedy and response is adaptive. They can easily adjust with diverse situations that the company encounters.

Skills Development

Matrix employees are pooled out for work assignments, even to projects that are not necessarily in line with their skill background. With this approach to management, employees have the chance to widen their skills and expertise.

Discipline Retention

One significant advantage of matrix management is that it enables the employees to maintain their skills in functional areas while working with multidisciplinary projects. Once the project is completed and the team wraps up, the members remain sharp in their discipline technically and return to their home functions.

Pitfalls

Here are some disadvantages of matrix management:

Power Struggle

In the matrix structure, there is always tension between the functional and project manager. Although their intent is polite, their conflicting demands and competition for control over the same resources make it more difficult.

Internal Complexity

Having more than one manager, the employees might become confused to who their immediate leader is. The dual authority can lead to internal complexity and possible communication problems. Worst, employee dissatisfaction and high employee turnover.

Heightened Conflict

In any given situation where people and resources are shared across projects, there would always be competition and conflict. When these issues are prolonged, conflicts will heightened and will lead to more internal problems.

Increased Stress

For the employees, being part of a matrix structure can be stressful. Their commitment is divided among the projects and their relationship with multiple managers requires various adjustments. Increased stress can negatively affect their performance in the long run.

Excessive Overhead Expenses

Overhead administrative costs, such as salaries, increase in a matrix structure. More expenses, more burden to the organization. This is a challenge to matrix management that leaders should consider carefully.

 

These are just some of the advantages and disadvantages of matrix management. The list could go on, depending on the unique circumstances that organizations have. The key is that when you decide to implement matrix management, you should recognize how to take full advantage of its benefits and understand how to lessen, if not eradicate, the pitfalls of this approach to management.

Talk with us about your Matrix Management concerns: contact us.

Competencies, Roles and Responsibilities of Lead Assessors

Any organization that opts for energy audits, Display of Energy Certificates and Green Deal Assessments needs a lead assessor to review the chosen ESOS compliance routes. The Derivative provides that energy audits should be carried out independently by qualified and accredited experts. Additionally, these audits should be implemented as well as supervised by independent authorities under the national legislation.

Lead assessors undertake several roles in ESOS assessments. He or she is the one responsible to take the lead of the entire assessment team, prepare the plan, conduct the meetings and submit the formal report to governing authorities. Nevertheless, selecting an appropriate lead assessor is an important element that every organization should carefully consider.

Competencies Requirements of Lead Assessors

Lead assessors should be knowledgeable enough with in-depth expertise in carrying out energy efficiency assessment. They should also possess foundational, functional and technical competencies to deliver the task effectively. Likewise, consider the assessors’ sector experiences, familiarity with your business’ technologies and properties, and accreditation with prescribed standards.

As you choose your lead assessor, contemplate on the skills and qualifications that would give your organization benefits.

Roles and Responsibilities of Lead Assessors

The business organization is responsible for the overall legal ESOS compliance. Moreover, here are some of the roles and responsibilities that lead assessors should assume in ESOS assessments.

The lead assessor agrees on the audit methodologies that the organization would undergo in new audits. He or she agrees with the ESOS participant regarding the audit timetable, sampling approach and visits required. It is also the lead assessor’s role to identify the opportunities on energy saving and assist in calculating the cost savings from the measures taken. During the ESOS audits, the lead assessor determines the energy use profiles, presents the recommendations and reviews the entire assessment as a whole. Furthermore, he or she should maintain the evidence pack of the ESOS to uphold the audit’s credibility, its findings and recommendations.

Finding Lead Assessors

Energy and environment professionals would only be able to demonstrate their expertise as lead assessors upon registering in a professional body accredited by the Environment Agency. Any business that needs a lead assessor is advised to check on the EA’s website to see the details of approved registers.

Lead assessors can either be in-house experts or external professionals. However, they should be able to provide proof of membership as an approved register to take the role of a lead assessor. If the organization has an internal lead assessor, the company should then take the final ESOS assessment to two board-level directors that would sign the formal report.

Indeed, the lead assessor is an organization’s partner when it comes to delivering great results. With good professional conduct and excellent management of an assessment team, the lead assessor can help achieve breakthrough energy efficiency strategies. More than anything else, the organization will benefit from maximum energy savings opportunities ahead. Thus, every qualified business enterprise should invest in finding the best lead assessor to guide them towards success.

 Choosing Routes for ESOS Compliance

Along the introduction of Energy Savings Opportunity Scheme in UK is the quick emergence of various companies that offer ESOS compliant services. While some energy audit providers can help, qualified businesses should understand what their compliance options are, how these routes work and learn both the pros and cons in order to carefully take their pick.

Independent ISO 50001 Certification

ISO 50001 comprises the integration and application of processes geared to motivate energy saving and overall improvement. Simply stated, it is a framework that drives the organization’s governance to realize energy saving strategies by allocating resources and participating in energy management. The good thing about ISO 50001 is that it includes an energy review that documents ideas and opportunities to save more energy.

However, ISO 50001 does not obligate organizations to cover 90% of their overall energy consumption. In case of partial coverage, the company needs to undergo additional energy assessments to evaluate all the significant energy consumption areas.

In order for an ISO 50001 certification to be valid, it must be certified by the United Kingdom Accreditation Service (UKAS), by an accreditation body which is a member of the International Accreditation Forum, or by a body accredited by another EU member state’s national accreditation body.

Display Energy Certificates and Green Deal Assessments

These two kinds of energy assessment reports can also contribute to ESOS compliance. Both of them are carried out by qualified lead assessors and valid for 10 years. However, they are only based on the building structures and services. They do not cover the overall significant areas in energy consumption. Since these reports are valid for 10 years, they would be used for two ESOS reporting periods. Thus, they would not be as current as the ISO 50001 certification. Aside from that, the assessments are purely based on energy efficiency and anyone can qualify to use the software that produce the certifications after taking the accreditation course.

Energy Audits

A successful energy audit leads to better understanding of the company’s energy consumption, identify alternatives, determine cost-effective energy saving opportunities and stimulate energy efficiency. Energy audits are beneficial to the organization. What makes it complex is that the organization applying it, needs to clearly define the scope and type of energy audit to use in order to comply with ESOS. Furthermore, the organization also has to identify the teams that would be competent enough to do the audit work for the building, transport and industrial area, respectively.

Each route is not formed equal. Thus, organizations have the option to either choose one or combine the routes and meet their company needs. The options mentioned are different approaches to ESOS and the core value is to grab the opportunity towards acquiring more savings through efficient energy system.

How Ecovaro Can Help

Ecovaro is passionate about making a difference. We are knowledgeable when it comes to ESOS legislation and regulation, ISO 50001 energy management system, DECs and Green Deal Assessments. More than that, we recognize the great impact of efficient management system to your organization. And with this, we provide an enthusiastic team of software engineers and expert project managers to offer you our professional help at reasonable price. Ecovaro comes to you fully equipped with services tailored to your organization’s energy management needs.

Benefits of Energy Savings Opportunity Scheme (ESOS)

More than just building energy, improving skills and undertaking audits, Energy Savings Opportunity Scheme works beyond. ESOS adheres to policy coherence, provides information to raise awareness, facilitates energy efficiency market and encourages adoption of appropriate energy efficiency measures.

Generally, ESOS is great for energy professionals and businesses. And in the current situation of UK’s energy industry, this new scheme is a substantial help. The key is to know the benefits that ESOS provides, understand how it can affect you, learn how to maximize its potential and make a big difference. Here’s to explore the highlights of ESOS.

Who benefits from ESOS?

Energy Savings Opportunity Scheme covers non-SME enterprises which includes UK businesses having more than 250 employees; even those with employees fewer than 250 but have annual turnover of more than £50m and balance sheet exceeding £43m; or those professionals that belong to a large enterprise. This is in accordance with what Article 8 of the EU Derivative provides.

What are the benefits of ESOS?

ESOS provides opportunities to enhance an organization’s energy efficiency strategy, of which the benefits include:

Economic Growth and Competitiveness

The implementation of energy efficient measures increases local employment in the labor markets. Consequently, this taps the labor potential and drives economic growth.  In a lower carbon economy, businesses need to develop green projects to maintain economic competitiveness as well. ESOS is a strategic approach initiated by the UK government to push technological innovation and energy investments.

Cost Savings and Emission Reductions

ESOS is flexible in such a way that it combines energy policies and innovations tailored to every organization’s need. The energy efficiency measures taken, resulting from the scheme, quickly cuts down both carbon emissions and energy bills in the cheapest possible ways.

Managing Energy Demand

ESOS provides energy security to the UK by reducing the energy consumption of enterprises. With this, the economy would be more efficient and less exposed to international energy market volatility. Also, this will lead to more savings from less future investment in energy infrastructure.

Getting your Management Performance Noticed

If you are an energy professional, you will benefit from ESOS by exploiting it; to boost your charisma towards the company directors. You can show them how the scheme works and how it can save your company substantial costs. Managing energy with ESOS can help an organization grow. Nevertheless, you are the key person designated to get the project done and achieve success.

 

How can ESOS make a difference?

More than anything else, ESOS can make a huge change. True to its name, it provides large enterprises the opportunity to manage energy wisely, reduce overhead costs and promote responsible corporate energy consumption.

The International Energy Agency said that investing in energy efficiency leads to growth, additional jobs, competent budgets on public spending and enhanced industry productivity. If you are an energy and environment professional or a non-SME business entity, you hold the impulse to act. Aside from all those excellent business benefits that you get to enjoy, you will be able to contribute a portion towards achieving UK’s national carbon target of 80% in CO2 by 2050.