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Framework Primer
Matrix Organization: Balance
of Power
Presentation created by
Project
Manager
Functional
Manager

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Contents
Templates
Overview
Balance of Power
Project-Functional Interface
Project Management Reporting
Strong vs. Weak Matrix
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The Balance of Power continually shifts in a Matrix Organization
Presentation Overview
In a Matrix Organization, even if there is a Balance of Power, the question of who is the real
boss still remains.
At the heart of the operation of the Matrix Organization is the Balance of Power between Project
Manager and Functional Manager. However, even if there is Balance of Power, the question as to who is
the real boss remains to be asked. Theoretically, it should be possible to divide the authority and
responsibility equally between the Project and Functional Manager. However, to do so is difficult. This
also seldom occurs.
Companies shifting towards a Matrix Organization must understand that the secret of the successfully
functioning Matrix is not just a pure Balance of Power. The type of interface relationship between the
Project and individual Functional Manager is also essential.
This presentation provides the basic elements necessary to establish a successfully functioning Matrix
Organization taking into consideration Balance of Power. Topics discussed include:
Equipped with the fundamental understanding of the Matrix Organization and power balance,
companies can successfully manage various factors that can interplay from within the Matrix.
This deck also includes slide templates for you to use in your own business presentations.
Unraveling the Multiple Management Interfaces3
Understanding the Matrix Organization Building a Strong Matrix Using 3 Critical Factors1 4
The Balance of Power in a Matrix Organization2 5 The Balance of Power Continuum

A Matrix Organization is one in which there is dual or multiple managerial accountability and
responsibility. It may mean different things to different people and in different industries.
Let’s begin by providing some basic info on the Matrix Organization,
which is a flexible approach to structuring teams and sharing resources
Matrix Organization – Overview
When the Matrix is accepted as a way of life, it can only bring great advantage to the
company in improving output and profit.
A Matrix Organization is not
for everyone. It will only work
if the entire organization, from
top management to project
personnel, are thoroughly
sold on the Matrix concept.
There are usually 2 chains of command. One along
functional lines and the other along project, product,
or client lines. Geographic location is another chain
of command.
The matrix organizational form may vary depending
on what position the Project Manager holds. Based
on the organizational principles, a Matrix will be
considered first where there is a Balance of Power
between the project and functional managers.
1
2

A Matrix Organization abandons the age-old management concept
of “thou shall have but one boss above thee”
Matrix Organization – Two Boss Matrix
In the typical Two Boss Matrix structure, each person has both a Project Manager and
Functional Manager.
In a balanced Matrix Organization, various people in the organization have 2 bosses.
Project Manager Functional Manager
Implicit in the definition of the
Matrix Organization is the
recognition that the project is
temporary, whereas functional
departments are permanent.
The Matrix is designed to be
temporary.
Executive or General
Manager
Project Personnel

Matrix is the next logical development in solving very complex problems
in large fragmented organizations
Matrix Organization – Matrix Project Organization
For more foundational information on Matrix Organizations, refer to:
https://flevy.com/browse/flevypro/matrix-organization-primer-3469.
The Matrix is built up as a
team of personnel drawn
from both the projects and
the functional or
disciplinary organization.
This model is based on 2 key principles:
It is temporary in nature.
It is built around the project or specific tasks
to be done rather than on organizational
functions.
1
2
The Matrix Project Organization refers to a multidisciplinary team whose members are drawn from
various line or functional units of the hierarchical organization.

Contents
Templates
Overview
Balance of Power

At the heart of the operation of the Matrix is the “Balance of Power”
between the Project Manager and Functional Manager
Balance of Power – Overview
Where there is no one real boss, Balance of Power is expected to continually shift.
Theoretically, it should be possible to divide the authority and responsibility equally between the Project and
Functional Managers. However, this can be difficult and it seldom occurs.
Proper
delineation of
authority and
responsibilities
is necessary
in a Matrix
Organization
where there is
no one real
boss.
To assure a proper Balance of
Power, a clear delineation of
authority and responsibilities of
both Project and Functional
Management must be done.
The Project Manager shall be
responsible for the overall
integration of the total project
system.
The Functional Manager shall
be responsible for technical
direction in his discipline.
Project
Manager
Functional
Manager

Functional Manager’s responsibilities
A Balance of Power may be achieved with clear delineation of
responsibilities
Balance of Power – Responsibilities of Project Managers vs. Functional Manager
The process results in potential conflicts being confronted early before specific problems
arise.
Responsibilities have been delineated for each manager to take responsibility for each own area.
Source: The Matrix Organization, Project Management Quarterly, 1979
Project Manager’s responsibilities
1. What is to be done?
2. When will the task be done?
3. Why will the task be done?
4. How much money is available to do
the task?
5. How well has the total project been
done?
1. How will the task be done?
2. Where will the task be done?
3. Who will do the task?
4. How well has the functional input
been integrated into the project?

RACI is a tool for delineating responsibilities and areas of Management
Balance of Power – RACI Charting (1 of 2)
For more information on RACI Charting and Analysis, take a look here:
https://flevy.com/browse/flevypro/raci-charting-and-analysis-3474.
A RACI Chart is a matrix of all the activities or decision making authorities undertaken in an organization set
against all the people or roles. At each intersection of activity and role, somebody is assigned for that activity.
Responsible Accountable Consulted Informed
Person who performs
an activity or does the
work.
RACI is an acronym for Responsible, Accountable, Consulted, and Informed.
Person who is
ultimately accountable
and has Yes/No/Veto.
Person that needs to
feedback and contribute
to the activity.
Person that needs to
know of the decision
or action.

RACI Analysis is helpful for numerous activities, from Workload Analysis
to Conflict Resolution to Project Management
Balance of Power – RACI Charting (2 of 2)
For more information on RACI Charting and Analysis, take a look at this framework:
Performing RACI Analysis is useful in addressing various concerns in management. Specific use cases for
RACI are listed below.
When used against individuals or departments overload.
To ensure that key functions and processes are not overlooked.
Newcomers can quickly identify their roles and responsibilities.
Allows duties to be redistributed effectively between groups and individuals.
Allows for flexibility in matrix management situations allowing for the right balance
between line and project accountabilities.
Provides a forum for discussion and resolving interdepartmental conflict.
Documents roles and responsibilities in an organization.
Workload Analysis
Reorganization
Employee Turnover
Work Assignment
Project Management
Conflict Resolution
Documents the Status Quo

Contents
Templates
Overview
Balance of Power

A successfully functioning Matrix is a function of the type of interface
that exists between the Project and individual Functional Manager
Project-Functional Interface – Overview
One who gets things done by working through others is essential for successful Project
Management in the Matrix Organization.
The secret of the successfully functioning Matrix is not just a pure Balance of Power. The type of interface
relationship that exists between the Project and individual Functional Manager is also essential.
Every project decision and action must be negotiated across this interface.
This interface is a natural conflict situation.
Many of the goals and objectives of project and Functional Management are different.
An interface can be a smooth working cooperation or bitter conflict depending on the personality and
dedication of the respective managers.
An overpowering Manager may win the local skirmish but can alienate everyone working on the project.
Cooperation and negotiation are the keys to successful decision making across the project/functional
interface.
A Project Manager must depend on the cooperation and support of the Functional Managers to
accomplish much.

A more adequate Organizational Model shows managerial relationships
as double ended arrows
Project-Functional Interface – Multiple Management Interfaces
In a Matrix Organization, team work and problem solving must be emphasized rather than
role definition.
In an adequate organizational model, relationships are two-way streets. Consultation, cooperation, and constant
support are very important keys to the success of a Matrix Organization.
Chief
Executive
Functional
Manager
Functional
Manager
Project/top
management interface
Project/functional interfaces
Project
Manager
Project personnel
Activity harmony must be
achieved by both Project
and Functional
Management.
The project team must be
more concerned with
solving the problem rather
than with who solves it.

Contents
Templates
Overview
Balance of Power

Next, we must consider how high Project Management should report
Project Management Reporting – Overview
To be effective, the Project Manager must be on at least an equal level with the highest level
of Functional Management that he must deal with.
Achieving power balance between the Project and Functional Management may be a desirable goal. It is a way
of minimizing potential power struggles and conflict.
It is critical
that a Project
Manager must
have sufficient
clout to be
effective. This
is a direct
function of the
level at which
he reports in
the
hierarchical
organization.
While there is no certain way
that there is a Balance of Power,
it can be approached by
assuming that the Project
Manager has achieved certain
level of clout.
The Project Manager has the
full support of top
management.
The Project Manager reports
at a high enough level in the
management hierarchy.
Project
Manager
Functional
Manager

The optimum reporting level may change during the life of a project
Project Management Reporting – Example
As the project progresses, the optimum level of reporting changes.
Reporting level may differ depending on whether the project is confined to a single department or spreads
across the entire company’s activities. This may change. As the effort progresses from basic research to the
manufacture of a product, the optimum reporting level may change.
CEO
V.P.MFGR.V.P.ENGR.
General Manager General Manager General Manager
Project Manager
Project Manager
Project Manager
Reporting level 1
Reporting level 2
Reporting level 3
Functional managers Functional managers Functional managers
Project scope
Project scope
Project scope

Contents
Templates
Overview
Balance of Power

Determining whether a Matrix is strong or weak may depend on its
Balance of Power
Strong vs. Weak Matrix – Overview
Many organizations have modified the Matrix by shifting the Balance of Power.
Balance of Power may not be desirable in many situations. However, at times, Project Managers need to tilt the
organizational Balance of Power to obtain better project performance.
There are 3 critical factors that can determine whether the Matrix is strong or weak.
A strong Matrix has
power balance on
the side of the
Project Management.
A weak Matrix has its
Balance of Power
tilted into the
direction of the line
or Functional
Management.
The Time Spent on
the Project
The Administrative
Relationship
The levels at which the
Project and involved
Functional Managers
report, and the backing
which they receive from
top management
The Physical
Relationship
The physical distances
between the various
people involved in the
project
The amount of time
spent on the project by
the respective Managers
1 2 3

The Balance of Power Continuum is a continuous succession framework
of organizational alternatives
Strong vs. Weak Matrix – Balance of Power Continuum (Functional, Project, Matrix)
A Matrix involves a range of organizational alternatives ranging from a weak to a strong
Matrix.
The shift in the Balance of Power reflects a continuum of managerial alternatives. It ranges from pure project to
functional.
The Matrix falls in the middle of the continuum. This can range from very weak to very strong depending on the relative
Balance of Power.
In a functional organization,
there is no one on the
project team.
In a pure project
organization, everybody is
on the project team.
The Matrix falls in between.
It involves a range of
organizational alternatives
ranging from a weak to a
strong Matrix.
Relative balance
of power
OR
Relative influence
in decision making
Weak matrix Strong matrix
Balance of Power
Project influence
in decision making
Functional influence
in decision making

Contents
Templates
Overview
Balance of Power

Insert headline
Project vs. Functional Manager Balance of Power – TEMPLATE
Insert bumper.
Project
Manager
Project
Manager
Functional
Manager
Functional
Manager
Insert filler text, filler text, filler text,
filler text, filler text.

Insert headline
Project vs. Functional Manager Balance of Power – TEMPLATE ALTERNATE
Insert bumper.
Project
Manager
Project
Manager
Functional
Manager
Functional
Manager
Insert filler text, filler text, filler text, filler
text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.
text, filler text.

Insert headline
Balance of Power Continuum (Functional, Project, Matrix) – TEMPLATE
Insert bumper.
Relative Balance
of Power
OR
Relative Influence
in Decision Making
Weak matrix Strong matrix
Balance of Power
Project influence in
decision making
Functional influence in
decision making

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Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
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