Project vs Line organization and their responsibilities

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!

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