Have you ever wondered why you got both a line organization and a project organization, a.k.a. matrix organization? What is the responsibility of each organization?

Project vs Line in a Matrix Organization

The line organization is often divided into a set of functional silos. This is obvious on a high level where we got finance, marketing and R&D departments etc. However, this is also the case if you dive further into each of these departments where you end up very narrow functional units.

Now, the project is a temporary, often time-boxed, organization set up to execute towards given objectives. In order to achieve is objectives it collects resources from the line organization and by doing so a project organization is created that can work towards its objectives.

The Line Organizations Responsibility

The line organization is responsible for

• providing resources to projects
• making sure the work is carried out based on craftsmanship
• managing employees and equipment
• long term development

The Project Organizations Responsibility

The project organization is responsible for

• specifying and reaching short term goals
• making sure that both time plan and budgeted targets are met
• managing change
• providing status reports

Is this how your organization works? Let me know! Leave a comment!