Management in a fluid matrix structure

In a matrix organization, teams report to several managers. The great benefit for companies is that the innovative character increases, as well-established teams continue to work together and mutually reinforce each other's talents. In this article, we have summarized exactly how a matrix structure is set up and what challenges you face as a leader.

How working in a matrix structure works

Whereas in traditional organizations there is a team leader who in turn reports to the project manager, who in turn reports to the managing director, in the matrix organization teams report to several managers. The major advantage of this matrix structure is that it is easier to react flexibly to changes and develop new products and services without having to keep putting together new teams. Members from different departments often work on projects, for example from IT, marketing and the finance department.

The advantages of a matrix structure at a glance:

• Effective use of resources
• Open communication
• Team bonding
• Clear project goals
• Agility and flexibility

In practice, a disadvantage arises when there are power struggles between managers due to unclear responsibilities. Good communication and consultation is also required when allocating priorities. The matrix structure is also criticized because employees receive tasks from two sides without the managers having agreed on them. In practice, this often leads to teams being overloaded. While in a linear management system, one person responsible keeps track of the distribution of tasks, the lack of an overall view in a matrix structure is usually the major weakness.

The success factors of good leadership

There is no doubt that the matrix structure offers considerable advantages for companies that want to be agile and flexible. In order to exploit this potential, the managers in this structure have a decisive responsibility. Three aspects are important for a matrix structure to succeed.

1. Clear allocation of roles
   Within a matrix organization, there are often power struggles and conflicts, but also uncertainty about one's own authority. The solution is to assign each person responsible a clear profile of their own tasks and competencies. The interfaces with other roles must also be taken into account. A good way to do this is to bring everyone involved together regularly and talk about unresolved issues. Where did misunderstandings arise? Where were responsibilities not yet clarified?
2. Open communication
   As a manager, you also have a role model function, especially in this matrix structure. This includes addressing conflict issues openly and working out solutions. This understanding of open communication is also important for employees so that they have the courage to put their critical issues on the table. Instead of silently struggling with an overload, they must be allowed to address and discuss this situation openly.
3. Transparent resource management
   The major challenge of management in a matrix structure is to keep an eye on the resources of individual employees. If tasks come from two or more sides, it is easy to lose track. Only effective resource management can help here. Here, the available capacities of the employees are compared with the respective tasks and the time required to complete them. This systematic approach creates transparency at all levels
   

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