A matrix structure is a system in which teams report to multiple leaders. The matrix design promotes open communication among groups and can assist businesses in developing more innovative products and services. Using this structure eliminates the need for teams to realign every time a new project begins. Project or horizontal assignments are never permanent in a matrix organizational structure. Employees can then move between projects or teams as needed, sharing their knowledge, expertise, and skills. Phillips, Caterpillar, and Texas Instruments are examples of successful organizations that have used a matrix organizational structure at some point in time.
