How a matrix structure works
- People keep a “home” in a function, such as engineering or design.
- They are assigned to projects or products led by a separate manager.
- Functional managers own skills, hiring and careers; project managers own priorities and delivery.
Advantages
- Specialists are shared across projects instead of duplicated.
- Cross-functional teams without a full reorg for each project.
- People broaden their experience while keeping a professional home.
Disadvantages
- Two bosses can mean conflicting priorities.
- More meetings and negotiation over people’s time.
- Accountability can blur when things go wrong.
When to use it
Project-based organisations that share scarce specialists: consultancies, engineering and construction firms, agencies, software companies running product squads, and multinationals balancing products with regions.
Real-world examples
Consulting and engineering firms commonly staff project teams from functional practices. Many software companies run “squads” where engineers report to an engineering manager but work day to day with a product manager, a model popularised by Spotify’s 2012 squads-and-tribes paper.
Draw your own
Open the org chart maker or start from a template. Add a second reporting line by choosing a dotted-line manager on any card.