The Dotted (line) Company

Geometry seems to be an integral part of the corporate world as we have seen in some of our earlier analysis. But nothing has been as cunningly used, with (un)predictable effect, as the dotted line. Early novices in the corporate world created the concept of defining and drawing an organization structure as a chart containing a series of parent-child relationship, connected using a bunch of vertical and horizontal lines.  Modern day management gurus have successfully neutralized the structure, and any discipline represented by such structures, by introducing the ubiquitous dotted line!

For the uninitiated, in an organization chart, a dotted line, in its simplest sense, represents an informal reporting relationship. But, before you get your hopes high regarding your understanding, let me warn you that there is a lot more unwritten, implied meaning to be derived by reading between the lines (pun intended). A dotted line serves various purposes, chief amongst them being to confuse the structure by diluting authority and responsibility, the cornerstones of an organization structure.

For example, in a company that has multiple manufacturing units at different locations, there is a finance department in each location reporting to the General Manager of the respective unit. At the same time, the head of finance at each location has a – you guessed it – dotted line relationship with the Chief Financial Officer (CFO) operating out of the Head Office.  The CFO could use the dotted lines as strings to play on the puppets attached at the end. This informal structure serves as the recipe for conflicts in priorities, daily activities and everything in between for the local finance departments who are forced to spend all their time managing a major standoff between their solid and dotted lines!

To understand the full power and destruction potential of the dotted mode of operation, listen to this conversation in a team meeting on an IT project.

Cindy (Project Manager)(trying to keep the overall project on track): I understand that the requirements have been gathered from all user departments. So, we can proceed with ……….

Jim (senior team member): Yes, Cindy, I believe we have completed the scope definition for the system.

Ron (HR specialist): Hold on a second. We have not fully vetted the legal requirements affecting part-time labor. We need to analyze those.

Cindy: But Ron, this issue has been raised many times in the past three months – why was no action taken to finalize legal requirements?

Ron: Cindy, I have been deputed to this project from HR, so I only have a dotted line relationship with you, the PM. I was ……

Cindy: But what does that have to do with you completing the requirements analysis, now that you have been on the project for three months?

Ron: I needed to ask for an additional resource from Legal to help with this analysis but since I only have a dotted line to you, I could not make that request to you.

Cindy: For God’s sake, why could you not ask your own HR manager that you needed help?

Ron: It is complicated – since I was temporarily assigned to you, my direct, solid line reporting within my department was suspended for the duration of the project – preventing me from placing any requests and so…

Cindy (exasperated): Why could you not have brought this up months ago?

Ron: I was still new in the company and was undergoing orientation from the Training department on all the dotted line relationships that I was part of.

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