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A matrix organization is a structure that reflects the complexity of the modern business environment of multiple (often competing) priorities. In the past organizations often had a functional organization inside a particular geography - so the US Marketing manager for a product - say widgets, worked for the US marketing VP who reported to the US President. In a matrix, companies realize that there are different and sometimes competing priorities driven by function, geography, business unit, customer segment etc.. etc.. So that same US Marketing person today may have a reporting line to the Marketing functional head, to the Business line head for widgets, to the US geographic head for profit and loss etc… A matrix then is an orgnaization structure with multiple reporting lines. But the structure itself solves nothing, it just lays out the problem more clearly, I think that all the value of the matrix lies in the way people work together to resolve daily conflicts and trade-offs

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Geoffrey Huels

Lvl 13
3y ago

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