A matrix organization can better support specialists working on a piece of a complex project, and in doing so, help the company as a whole create a great product. Keep reading to learn more about matrix organizations and how to create them. 

What is a matrix organization?

A matrix organization has a management structure in which team members report to two (or more) managers. Generally, one manager has authority over a project, while the other has authority over their reports’ functional work. 

Matrixed organizations are a good fit for highly complex projects that require many different types of specialists. For example, NASA was an early pioneer of matrix structures in the 1960s, as it needed a better way to coordinate huge, complicated aerospace projects. In a matrix organization, someone owns the project itself, but each team member still has someone overseeing them who understands the nitty-gritty of their work as a specialist. 

What are the benefits of adopting a matrix organization?

Matrix structures aren’t a good fit for every organization, but when done well, they carry several important benefits:

Better, more flexible resource allocation

Because specialists work with project teams and have a home on their own team of specialists, they can be called to work on new projects as needed. You don’t have to restructure your entire organization to move someone with the expertise you need to a new project—let them keep reporting to their functional manager, but add that they’re now working on this project too and reporting to the project manager for it. 

This flexibility helps the organization adapt when new needs arise. If you need to quickly put together a team for a new project, it won’t be as much of a hassle or as difficult for team members as it is when you have to completely uproot them. Consequently, the organization can get the right people for the job when they need them, leading to faster and better work.

This is also true when a project has to shut down. In a matrixed organization, if a project is canceled, the team members involved aren’t suddenly homeless in the organization. They still have a functional manager, which lessens the shock and helps the organization find the best new place to use their talents. 

More effective communication and collaboration

Matrix organizations are less prone to creating silos.  Because each specialist works with a variety of other employees, and project managers oversee different kinds of specialists, everyone gets more exposure to each other. This helps communication and collaboration between departments. 

When different specialists communicate and collaborate more, they can share insights and knowledge. This benefits the organization as a whole as all employees are more likely to understand each other’s work and feel comfortable reaching out when they need help. 

Better morale

Specialists often like to work with other employees in their field. They may not want to spend their time as the only person doing what they do. They need colleagues they can get advice from and who understand what they’re facing. 

In a matrix organization, specialists work with the other employees that the project requires, but they still have a home on their functional team with a manager who has a deep understanding of their work, no matter how technical. This helps employees feel more engaged with their work and more likely to stay and give it their all. 

What problems can arise in matrixed organizations?

When done well, matrix structures help organizations do complex work quickly and efficiently. However, if the matrix isn’t structured carefully, it can create confusion.

Specifically, matrix organizations can struggle with:

• Turf wars: If a functional manager and project manager have different priorities, they can clash and throw off the whole project.

• Bottlenecks: Since employees have multiple managers, they may need to get more approvals than they would in a traditional organization. This can lead to slower decision-making.

• Conflicting directives: If the two managers aren’t on the same page, employees are caught in the middle. 

However, if your organization is careful about how it structures the matrix, you should be able to minimize these problems. It all comes down to clearly defining each manager’s roles and responsibilities.

How do you balance the power between multiple managers of an employee?

Some matrix organizations try to split the power balance between the functional and project managers 50/50, while others let the balance lean to one or the other. When the functional manager is more empowered, we call it a weak matrix because it functions more like a traditional company hierarchy. If a project manager is more in charge, it’s called a strong matrix as it’s more project-centered. 

Whether you choose a weak, strong, or balanced matrix is up to you. Generally, if you choose a weak matrix it’s because your organization values functional expertise above all, and if you choose a strong matrix it’s because your organization depends on a project’s success.

No matter what style of matrix organization you choose, ensure that both managers’ responsibilities are spelled out and agreed to in advance. For example, you may decide that the project manager is in charge of things pertaining to the budget and timeline while the functional manager has the final say on how to complete each piece of work. 

With a clear delineation of responsibilities, a strong personality is less likely to attempt to take everything over, and everyone on the team knows who makes the final decision about something. 

How to create a matrix organization

To reap the benefits of establishing a matrixed organization and minimize the risks, you need to plan carefully. Follow these steps:

1. Get to know your teams and specialists

Start by deciding which departments will be part of your matrix. Within each department, learn the skill sets different team members bring to the table so you know who can contribute to future projects.

2. Nominate co-managers

You likely already have people working as functional managers and project managers in your organization already. Now you just need to reassign your team members so they report to both types of managers instead of just one. Work with your human resources department and your department heads to assign your team members to dual managers. 

3. Create a communications plan

If your teams are used to working in their silos, they may not have channels ready for collaboration. Create a communications plan and comms channel for them to use so the project groups are ready to go.

4. Set goals and metrics

If your employees aren’t used to this style of working, they’ll need clear goals to reach for. Get everyone aligned on what project success looks like and how the company will measure it, and give everyone key performance indicators (KPIs) so they know what’s expected of them.

5. Built a team working agreement

A matrix organization is built on collaboration, and no matter how well you design the matrix, conflicts can still rear their heads. You need an established way to settle disagreements so that work can proceed. Create one in advance so everyone knows the process.

Create a matrix organization with Lucidchart

Lucidchart can help you create your matrix organization. Try our matrix org chart template to help you visualize both command hierarchies and cross-functional teams. The template will give you a jumpstart as you reorganize your teams so you can start reaping the benefits of a matrix structure sooner. 

If your company needs to coordinate work on complex projects and needs a flexible, adaptable workforce, a matrix organization could be right for you. Start outlining how you’ll make it work with Lucidchart, and you’ll be on your way.