If you’re struggling with managing multiple teams and projects, a matrix organization structure can make all the difference. In layman’s terms, the matrix organizational structure is just a way of relaying information between all team members across multiple departments.
For instance, members of different teams report to project and functional managers (marketing, finance, production managers, and so on), who then report to the chief executive officer.
This improves cross-team communication and eliminates the need for team members to align or realign whenever a new project kicks off.
So if you want to know the following:
- What a matrix organization structure is
- The different types of matrix structures
- Why it’s a better way of running projects
- How to build your own matrix
- Some critical examples from prominent companies
Then you’ll love this in-depth guide.
Ready to enter the matrix? Let’s get started.
What is a Matrix Organizational Structure?
In the classic, top-down organizational structure, the CEO stands at the very top while the COO (chief operating officer), CFO (chief financial officer), and department managers come next.
In a horizontal structure, copywriters report to the creative director, who reports to the CMO, who then reports to the CEO. You get the point. Reporting is linear, and everyone from marketing, sales, design, and development, to finance and HR teams follow the same reporting structure.
The traditional top-down structure is less complex than the matrix organizational structure. For one, the matrix organization structure may involve team members reporting to both their department and functional manager and project managers that also report to their department managers.
That’s why the top-down organizational structure is tree-like while the matrix organizational structure has a rectangular shape.
A matrix structure created in ClickUp Whiteboard via Allaeddine Djaidani
It’s worth mentioning that the matrix organizational structure unites and balances out several types of organizational structures. It brings in project managers a new chain of command besides functional managers, which is why some like to name it the two-boss matrix.
Working on large-scale projects where a diverse set of talent is included, project managers: Manage talent is a digital marketer and the founder of HustlerEthos.com