The matrix project management organization is a matrix-like organization. The project management personnel are sent by the relevant functional departments of the enterprise to provide business guidance and are directly led by the project manager. This is an ideal strategy for any business working on multiple projects with similar or overlapping skill requirements.
How does matrix organization work?
Matrix organizations are designed to support a shared services model where resources can be deployed across various projects based on skill sets, regardless of which department or team they belong to.
This helps break down silos and facilitates cross-functional collaboration. Additionally, a shared resource pool reduces the cost of hiring new candidates with similar skills and optimizes overall utilization.
While this mode of operation sounds fairly simple, operational complexity increases when multiple projects running simultaneously require the same capabilities. Therefore, a matrix structure requires specific roles and responsibilities to simplify this.
The Importance of Matrix Project Management
Matrix management helps businesses thrive in the current dynamic and agile workplace, allowing for maximum utilization of existing workforce potential.
1. Promote efficient use of resources
Since matrix management supports a shared services model, it allows employees to utilize their skills and unlock their true potential on different projects simultaneously.
For example, a business can maximize profitable utilization while reducing resource costs by using the same resources for two projects based on the project's schedule and availability.
Also, if resources are underutilized, resource managers can provide them with suitable jobs by assigning them to different projects (across departments). These practices ensure a uniform distribution of workload and efficient utilization of the talent pool.
2. Help utilize cost-effective resources
Since resources are expensive investments, creating the most suitable team to prevent project budget overruns ensures profitability.
A matrix structure enables resource managers to leverage cost-effective resources beyond regional boundaries.
If resources are beyond their control, they can coordinate with other resource managers and department heads to procure the most suitable resources at a lower cost. For example, suppose a project is located in the United States where resource costs are high. The matrix structure here enables resource managers to source resources with similar skills from low-cost countries and control project costs without compromising quality.
3. Enhancing innovation and autonomy
Matrix organizations facilitate interdepartmental collaboration among resources from different functions and locations, which form functionally and culturally diverse teams. Thus, when subject matter experts from different fields work together, a matrix structure can enable them to think outside the box and foster innovation.
In addition, matrix management goes beyond one level of authority and encourages division of labor. Thus, a sense of accountability is fostered when project managers delegate their responsibilities to specialized resources. It also gives them more room to be creative and innovative. All of this adds up to increased autonomy.
4. Facilitate knowledge sharing across functions
After understanding the capabilities of matrix management, it is clear that it enables an open working environment. In other words, when resources across departments coordinate their work on a project, it opens the door to knowledge sharing. Seamless collaboration will help maintain a competitive edge and ensure that projects are delivered to quality standards.
5. Develop greater flexibility and adaptability
Since the matrix structure provides the freedom to share resources between different departments, it promotes organizational flexibility. Additionally, when Matrix resources work on a variety of projects across different functions, they have the opportunity to thrive in a dynamic environment.
This broad ability to work according to different processes and standards, along with team dynamics across the organization, helps resources become more adaptable.
How to do a good job in matrix project management?
Using the project management system based on modern technology, all the managers and executives of the project and the whole process of the project are included, which can not only meet the requirements of enterprise project management, but also help to improve the efficiency of enterprise operation.
Here are some tips on how to do matrix management well with 8Manage PM:
1. Assign roles and responsibilities: Create a project team in the PM system and assign roles and responsibilities to team members. Everyone understands their role in the project, setting the stage for better collaboration.
2. Set clear goals and objectives: Clearly define the goals and objectives of the project and share them with the entire team. This will ensure that everyone is working towards the same goal and avoid any misunderstandings.
3. Use a centralized communication platform: PM can be used as a centralized communication platform to permanently save all instant chat and forum communication records for easy reference at any time. This will ensure that communication is streamlined and everyone gets the same information.
4. Create project timetables and calendars: By organizing tasks and creating timetables, PM helps you monitor their progress and report on performance, keeping everything on track and avoiding resource conflicts.
5. Use project dashboards and reports: PM provides various planning and usage reports to keep everyone informed about progress, milestones and any issues that may arise. This will help keep everyone on the same page and keep the project running smoothly.
Given the complexity of matrix organizational structures, a proper project management system can provide data-driven insights into data availability, utilization, and resource capacity, allowing managers to anticipate demand ahead of time.