An organizational chart isn’t just for straight-line reporting. You can use them for different things with different types. Matrix is one of the main types of organizational charts. Using the matrix organizational structure is a common way to organize work, coordinate departments, and align teams’ efforts.

“Because matrix organizations involve people whose jobs cross different functional areas…, they can cause problems like duplication of effort.” –David Harkins in “How to Grow When Your Company Doesn’t Have a Clue.”

It’s crucial to remember serious considerations before creating an org chart, especially implementing a matrix org chart. Matrixes require strong leadership and support from upper management and increased cooperation between departmental managers and employees. Without them all working together toward one goal, Matrix charts could jeopardize your business.

Here are 9 instances when a matrix organizational chart can be healthy for your business:

1) The Workforce Is Highly Divided and Diverse

If your workforce is highly specialized, you’ll want to consider using a matrix structure. “[Matrixes] allows organizations to increase the number of functions served while decreasing the redundancy that occurs in many functional organizations.” stated John R. Henderson in his book “Deal Making.” Matrix organizations also give managers more control over operations by offering them multiple avenues to solve problems. In addition, they allow companies’ leaders to develop individuals who have potential and skillsets from other departments.

For instance, your company has two divisions – marketing and sales – that must work together to create a product. Each department has its own very different skill set. Both teams need to understand each other’s capabilities for their efforts to be successful. Matrix organizational chart allows you to organize these teams to communicate efficiently and create the best product possible.

2) Multiple Products or Services Are Being Developed at Once

A company organizational chart is one of the things that keeps a company running smoothly, especially during busy days. A matrix structure also comes in handy when companies are developing multiple products within the same timeframe.

Take HTC as an example. The Taiwanese smartphone maker produces phones, VR headsets, tablets, audio accessories, fitness trackers, and more under one business unit. It uses a matrix organization because it needs R&D employees’ expertise on all of its products equally. To do this effectively, the organization needs workers from different departments working together regularly.

3) You Have Several Important Projects or Initiatives in the Works

Matrix organizations foster communication and team-building between departments that can help with large projects. By using this functional organizational structure, companies can ensure no aspect of the project is overlooked. Whether it’s unveiling a new product or creating a sales presentation for executives in different parts of their business. Matrix org charts cover all areas. This is why many companies use this kind of chart when completing strategic initiatives.

If you want to create an effective matrix organizational chart, Venngage can help you. Venngage is a user-friendly site with countless free templates to choose from.

4) Leadership is Undergoing Significant Change

You might consider switching to a matrix organizational chart if you’re going through leadership changes within your company. For example, if your marketing team is on its third director in six months. Using matrix organizational charts will be helpful for this kind of instance. This allows employees who are reporting to new leaders have easy access to their supervisors. These charts also help new leaders to know the concerns of their employees.

5) There Are Limited Resources

Matrix organizations allocate resources more effectively than traditional structural systems. “…problem for functional managers… they see their function as the most important part of the company.” — Henderson in “Dealmaking.”

With a matrix structure, all departments work together toward common goals rather than emphasizing individual functions within one department. This allows for an equal distribution of resources needed by employees to do their jobs.

6) You Have Several Projects Taking Place at the Same Time

Various projects happening at the same time are a common thing in a company. When this happens, It’s difficult for employees in departments that aren’t involved with each project to avoid the drama. This is because the issues surrounding one project inevitably affect other parts of your business.

For example, a department head works on four separate projects: Project Alpha, Beta, Gamma, and Delta. An employee is struggling with Project Beta, but the project head can’t approach him because he’s busy managing other projects. This lack of communication might cause trouble within his department.

He should know all of his team members well and recognize whether they can handle projects independently. Using a matrix structure alleviates this issue because each team works together and communicates with one another regularly.

7) There are Some Changes to the Organizational Chart

A business organizational chart that uses matrix organizations adapts easier to rapid changes within an organization than those that don’t. For instance, HTC Corporation uses this chart to share employees’ expertise across all of its product lines.

You might consider switching from a traditional plan to a matrix organizational chart when going through a leadership change. Because of this, everyone will have equal access to information and resources needed for success regardless of their supervisor. This can also be an essential guide for newly-hired employees. They could just easily look at the chart if they feel lost or confused.

8) There Are Several Departments with Different Priorities

If your company has different areas of expertise, using a matrix structure can help employees in each department work together. A company that handles product development and customer service might benefit from the matrix charts more than others. Venngage offers a lot of templates that you can choose from that fits your company.

“The big challenge of understanding marketing without… study is gone if you can interact directly with the developers.” according to James Currier at Hacker News. Letting each department free rein over their own decisions within specific parameters allows employees to use their expertise. In addition, this also allows collaboration with other departments to get the job done easier.

9) You Want to Encourage Creativity and Innovation

Matrix organizations encourage creativity, innovation, and lateral thinking. When employees aren’t afraid of failure, they can take more risks. This makes it easier for employees to be innovative within the parameters set up by the company. In addition, matrix org charts also encourage employee engagement. It boosts their teamwork since they are working in a team setting toward shared goals.

Takeaway

Organizational charts are proven to help run a company. However, using a matrix org chart can take your company to a higher level. Be updated on every action in every department of your company, and run your company efficiently with these charts.

Luckily, today, there are many free websites online where you can create your matrix organizational charts. Venngage is one of the best and most trusted sites for making these kinds of charts. Check out Venngage diagram and get started on creating your own chart.