03/17/2025 - Articles
Matrix organization: flexible collaboration on complex projects
Discover the matrix organization: a fascinating interplay of technical expertise and flexible project management. As a flexible form of project organization, the matrix organization is particularly suitable for complex and multidisciplinary projects. It adapts to changing requirements and is ideal in combination with agile methods. Three exciting use cases provide a vivid example of how the matrix organization is used. Find out in this article how this form of organization can also lead your company to new levels of efficiency and innovation.
Contents:
- How does the matrix organization work?
- Advantages of the matrix organization
- Disadvantages of the matrix organization
- Areas of application for the matrix organization
- Example of a matrix organization in a project
- 3 tips: Implementing a matrix organization
- Matrix organization as an agile solution
- Alternatives to the matrix organization
- Software for the matrix organization
- Best practice matrix organization: msg global solutions
- Best practice matrix organization: gematik GmbH
- Best practice matrix organization: MUL-CT Cottbus
- Conclusion: Balance between line and project – matrix organization
How does the matrix organization work?
The matrix organization is a project organization form that combines elements of the functional organization and the pure project organization. In this multidimensional structure, employees work both in their functional department and in project-related teams and have two superiors, the project manager and their department head, who are in principle equal. This makes the matrix organization a multi-line system in which employees receive instructions from several superordinate instances.
According to the PMI's PMBOK® Guide, there are three types of matrix organization
| 1. | Weak matrix: departments play the dominant role vis-à-vis the project team. |
| 2. | Balanced matrix: project organization and line organization have approximately equal access to resources. |
| 3. | Strong matrix: project teams enjoy more autonomy, while the influence of departments and line managers is less. |
In a matrix organization, the project manager has technical authority over the project, while the respective department heads retain disciplinary authority over the members of the project team. This enables the following between functional and project-related teams:
optimal use of resources
flexible assignment of tasks
close cooperation
To minimize resource conflicts and employee overload in the area of tension between their line and project work, a steering committee can be set up. The project manager reports to this committee, which acts as a decision-making and escalation instance and is responsible for capacity planning. The involvement of the department heads in this committee ensures transparency and regular coordination, thus reducing the potential for conflict.
What are the advantages of a matrix organization?
1. Efficient use of resources
The core strength of the matrix organization lies in the efficient use of resources. Employees can apply their expertise in different projects and at the same time in their department, which leads to optimal utilization.
2. Flexibility and adaptability
In dynamic environments where requirements change quickly, the matrix organization proves to be extremely flexible. It enables companies to react quickly to new challenges and to redistribute resources accordingly.
3. Optimal use of expertise
Thanks to dual leadership, employees have access to expertise from both their department and the project manager. This promotes the integrative use of knowledge and contributes to continuous professional development.
4. Better communication and collaboration
The matrix structure promotes communication between different hierarchy levels and departments. Through close collaboration between project and department managers and project employees, better coordination and integration is achieved.
What are the disadvantages of a matrix organization?
- Power and authority conflicts: Dual reporting can lead to power struggles and authority conflicts, especially when different priorities or objectives exist. This requires a clear definition of responsibilities.
- Complex communication channels: Dual leadership leads to complex communication channels. Misunderstandings and information loss can occur if communication is not clearly structured.
- Time-consuming decision-making processes: Decision-making processes can be time-consuming because coordination between project and departmental management is required. This can lead to delays in fast-paced project scenarios.
- High coordination effort: The high coordination effort between the different management levels is a challenge. Precise coordination is necessary to avoid conflicting goals.
- Double burden for those involved in line functions: Employees who work in both departments and projects can experience an increased workload, which can lead to stress and dissatisfaction.
Areas of application for the matrix organization
The matrix organization is particularly suitable for:
Complex projects with different requirements: In situations where different functional competencies are required, the matrix structure offers the opportunity to form teams across departmental boundaries and to use resources effectively.
Innovation projects: For projects that require creative input from different fields, the matrix organization can be effective because it can flexibly integrate expert knowledge from different teams.
The matrix organization enables a balanced use of expertise and resources, especially when an organization's requirements are diverse and specialized. The flexibility and interdisciplinary cooperation offered by the matrix structure are particularly beneficial for projects in
- research and development
- software development
- product innovation
- creative industries
The matrix organization is used primarily in large and internationally active companies. The matrix structure is often used there as a supplement to the line organization in order to integrate additional aspects relevant to coordination.
The matrix organization has proven to be particularly successful in project-oriented industries such as construction or automotive industry. This model enables a plannable, guided and overarching corporate development, especially in situations that require a high degree of flexibility and adaptation.
The spread of matrix organizations to medium-sized companies is driven by internationalization and the increasing complexity and dynamics of market and business activities. In public administration, craft-based organizations and companies with a strong national focus, the pure matrix organization is less common..
Example of a matrix organization in a project
In a software development company, a new product is being developed that requires close collaboration between different departments, including development, quality management and marketing. Each department has its own specific tasks and responsibilities. In the matrix organization, team members work both functionally and project-oriented.
The project manager is responsible for coordinating the overall vision of the product and ensuring that the goals of the project are met. The development department provides the technical expertise, while quality management monitors compliance with standards. The marketing team focuses on preparing a successful market launch.
In the matrix organization, the team members can respond flexibly to the project's requirements and use resources efficiently. The project manager must work closely with the department heads to ensure that employees fulfill both their functional tasks and their project-related obligations.
The matrix structure makes it possible to leverage subject matter expertise while maintaining clear project direction. Through this cooperation, the various departments can pool their resources to successfully launch the product.
3 tips: implementing a matrix organization
Implementing a multi-line system in matrix form is undoubtedly a wise decision to reduce hierarchies and improve project communication between management levels, managers and employees. However, there are also new challenges to overcome:
Tip 1: Intensify communication
Increased communication is needed to ensure that all tasks and authorities are clearly defined.
Tip 2: Define responsibilities clearly
Another potential problem is the occurrence of disputes between the various managers. A proven solution to this is to establish clear rules and responsibilities. One possibility, for example, could be for all employees to have both a professional and a disciplinary superior.
Tip 3: Clearly define matrix structures
Consider the option of using matrix structures exclusively for project work. This way, the line organization can be flexibly designed on a temporary basis without being confronted with the challenges of a consistent matrix organization in the long term.
The matrix organization as an agile solution
Companies are increasingly confronted with the challenge of agile change. In many German companies, the classic organizational structure, characterized by hierarchical structures and a clear pyramid, dominates. However, to meet agile requirements, the matrix organization is proving to be a promising solution.
The matrix organization relies on a multidimensional structure that can be used to break through traditional departmental boundaries. Cross-functional and flexible teams are at the heart of this form of organization.
In contrast to the traditional organizational structure, in which hierarchies often take precedence over customer concerns, the matrix structure focuses on interdisciplinary teams. These teams are designed to design products or projects that generate direct benefits for customers. Customer centricity can thus become the guiding principle for the agile matrix organization.
In an agile matrix organization, the role of managers also changes. Instead of acting as conductors, they act as service providers for the teams. This transformation enables greater decision-making authority and autonomy on the part of the teams.
Find out what this might look like using software development as an example: At Projektron, we develop using the agile Scrum method. In the context of a matrix organization, team members from other departments take on the role of scrum master and domain product owner (DPO) and work flexibly and across disciplines with the five development teams.
Read the article “Scrum in software development at Projektron”
What are the alternatives to a matrix organization?
Option 1: Projectized organization
Do you have to manage large and complex projects or are innovation and creativity in demand in your projects? In this case, a projectized organization can be a good alternative to a matrix organization. Read the article to learn everything about the projectized organization.
Option 2: Staff organization
Or does your project landscape consist mainly of small-scale projects or projects with a simple structure? In this case, the staff organization could be the best project organization form. Take a look at our article on the staff project organization.
Further alternatives
In addition to the matrix organization, the projectized organization and the staff organization, there are other project organization forms, namely the line project organization and the project company. In this article, we will present all 5 project organization forms in a clear way and discuss advantages, disadvantages and possible applications.
Perfect software for the matrix organization: Projektron BCS
Projektron BCS is the ideal project management software for easily and accurately mapping your project organization in a matrix organization:
| Define organizational structure: You can map your company's organizational structure in Projektron BCS, from branches to departments to individual employees. You can flexibly adapt and individually design the structure. | |
| Resource management: In the resource management, you can assign individual persons or entire groups of persons to various projects. In doing so, you access the data stored in the system to keep an eye on the workload of employees and ensure that resources are used optimally. | |
| Flexibility in resource provision: Resource provision for projects can be flexibly adapted to the processes in the company. Line managers can determine who is part of the project team without direct project reference and make changes if necessary, for example in the event of capacity bottlenecks. | |
| Separation of resource management and project management: It is also possible to strictly separate resource management and project management. Project managers can plan their projects with placeholders, while line managers assign their employees. | |
| Scheduling and overview: Projektron BCS helps you schedule employees on a daily basis over long periods of time. The scheduler shows you which employees are already scheduled and which are still available. You get an overview of appointments spanning multiple days and can quickly resolve any scheduling conflicts. | |
| Detailed rights and role concept: Projektron BCS also offers a suitable rights and role concept to protect sensitive information and only give the people who need it access to the information. |
These features make Projektron BCS an ideal solution for companies that are structured in a matrix organization and require efficient resource planning.
Use case msg global solutions – a matrix organization on a global level
msg global solutions Deutschland GmbH is a global provider of consulting, implementation and managed services with over 1,400 employees in 23 subsidiaries. The company is structured as a matrix organization in which employees work on both customer projects and internal functions. This cross-organizational collaboration results in complex, transnational project structures that require efficient multi-project management.
Peter Schürmann, Head of Global Project Management, msg global solutions Deutschland GmbH
“Our customer projects are assigned to a country according to the customer's location, but are always processed by an international team of up to ten countries. That means that project planning, booking and billing always involves many countries. Projects typically last half a year, but larger or operational projects can take several years. Our projects are regionally mixed, from the project manager to the development teams. Teams are then often country units, for example a development team in India, an operations team in the Philippines and a local team of consultants.
Challenging and mapped in BCS: The responsibility for implementation lies with a global business unit, while the country organizations are responsible for contracts and customer billing. With Projektron BCS, we were able to fully map our complex matrix organization in the internal tree structure. The fine-grained rights management allows us to assign targeted access rights and to generate customized views for different roles and functions.”
Read the success story of Peter Schürmann, Head of Global Project Management, to find out how msg global solutions is mastering the challenges of a global matrix organization with Projektron BCS – from cross-border resource planning to precise billing in international projects.
To the success story of msg global solutions Deutschland GmbH
Use Case gematik GmbH: Matrix organization in Projektron BCS
gematik GmbH is the organization that bears overall responsibility for the telematics infrastructure (TI) in Germany. The TI is the central platform for digital applications in the German healthcare system. Its mandate was established in 2005 in the German Social Security Code V. gematik's goal is to decisively advance the digitization of the German healthcare system. It acts as a center of competence and coordination for interoperability.
Mirko Richter, People Analyst, gematik GmbH
“gematik is structured as a matrix organization. Resource planning was a challenge under these conditions. Until the end of 2013, the gematik departments and divisions had their own various applications that had reached their limits. That's why we decided to implement a comprehensive solution that could offer our project managers and line managers more transparency regarding the workload of their employees. It was particularly important to have a corresponding rights and roles concept that protects sensitive information. The transparent and cross-departmental resource planning with Projektron BCS is a major advantage. Combined with the many customizable evaluation views, we now receive exactly the information we need.”
In the success story, Mirko Richter, People Analyst at gematik GmbH, provides detailed insights into the introduction and use of Projektron BCS and what he particularly appreciates about the cross-departmental resource planning, the wide range of evaluation and project controlling options and rights and role concept in BCS.
To the gematik GmbH success story
Use Case Medical University of Lausitz - Carl Thiem: Cross-departmental project planning with BCS
With over 1,200 beds and around 3,000 employees and trainees, the Medical University of Lausitz - Carl Thiem (MUL-CT) is the largest employer in Cottbus and one of the largest and most efficient hospitals in Germany. With over 20 clinics, departments and sections, the MUL-CT is a high-performance medical center that provides excellent comprehensive medical care. More than 100,000 patients are treated as inpatients and/or outpatients each year. Since 2021, Projektron BCS has been the central tool in which everything comes together. In BCS, the MUL-CT maps its entire internal organization and implements resource planning and material cost planning holistically across projects.
Thilo Menges, Head of Digitization & Innovation, Medical University of Lausitz - Carl Thiem
“Project organization is an issue across all industries. This applies not only to our overarching healthcare sector in general, but also to the subordinate areas of IT, digitization & innovation, and research alike. The tools we use to structure our workflows must be adaptable to the way we can map our work internally – whether it's via Kanban or personal task assignment via tickets or automated workflows. Projektron BCS offers all of these options and allows me to ideally reflect my organization in its individual way of working and to provide the best possible support for its communication.
Around 20 project managers who are responsible for projects in the three core areas of IT, digitization & innovation and research are actively involved in using BCS because they sometimes use the same resources to carry out their projects. For our large-scale projects, we use the PRINCE2 project management method, insofar as it is suitable for the organization in individual cases. BCS optimally supports this method with functionalities and corresponding assistants.”
Read the full success story to find out how MUL-CT successfully manages its large-scale projects with Projekron BCS.
To the success story of MUL-CT
Conclusion: Balancing line and project – matrix organization
The matrix organization offers an innovative solution for companies looking for a flexible and efficient use of expertise and resources. By simultaneously anchoring functional departments and project-related teams, it enables an optimal balance between subject matter experts and project management. The advantages lie in the optimal use of resources, flexibility, broader access to knowledge and skills, and improved communication through close collaboration between functional and project-related teams.
However, challenges such as duplicate reporting structures, complexity and additional coordination effort must also be taken into account. Nevertheless, the matrix organization proves to be a suitable choice, especially for complex projects with different requirements and innovation projects where different areas of expertise need to be combined. Overall, if carefully designed, the matrix organization can help to minimize conflicts and ensure a balanced use of expertise and resources.
About the author
Kai Sulkowski is an editor in the marketing department at Projektron and an expert in project management topics. With his many years of experience in analyzing and preparing complex technical content, he imparts in-depth knowledge of best practices, methods, and trends in project management. His focus is on providing practical content that helps companies manage their projects efficiently.
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The teaser image shows a simplified diagram of the matrix organization. The matrix structure connects functional departments with project-related teams, thus ensuring flexible collaboration in complex projects.
