A case study: How we transformed YCH Blue Digital Limited structure: from matrix to product-based 

The transition in structure was a strategic change which involved redefining roles a responsibilities around sets of aligned products rather than projects, intending to speed up the innovation and increase the productivity and accountability of employees. More than that, agile methodologies improved cross-functional collaboration with faster decision-making within YCH Blue Digital Limited. The new approach empowered our teams to deliver products that meet the current customer needs and stay focused on ever-evolving market dynamics. 

In a matrix structure, employees often deal with ambiguous roles since they report to different managers who need a clearer understanding of who is responsible. This creates uncertainty in task execution, which leads to frustration and a lack of focus on key objectives. In our case, the situation ended up with competing priorities between project and functional managers, prolonging the processes and postponing decision-making. 

Let me get this straight beforehand: it’s not only about changing the organisational goals. YCH Blue Digital Limited is committed to a culture that would enable teams to deliver outstanding products, so it’s a question of culture that inspires ownership, agility, and collaboration. And the transition to a product-based structure allowed our teams to innovate without sacrificing their efficie 

In a product-based structure, the teams are organised along with products or services. Each team holds clear ownership over the success of their product. This helps to increase team members’ focus on their area of responsibility since each division operates independently to manage its functions that involve development and marketing. As a result, teams develop expertise in their product areas, and cross-functional collaboration brings more value and creativity. Fewer layers of management involved in decision-making help teams to make decisions which more closely align with their product goals, enhancing adaptability to market changes. 

Although this model sometimes makes things a little harder to manage, it outweighs the negatives with a culture of continuous improvement leading the company to success in a dynamic environment.

We started the process with a critical analysis of the existing challenges and needs within our company. This prepared the ground for an effective transition. 

The creation of product teams took place in several stages: 

● Mapping out the company’s product portfolio, visualizing its strengths and gaps; 

● Changing the definition of the key roles within new teams. Some rol exist in both matrix and product-based structures, however, in a product-based structure, it’s essential to provide more autonomy and ensure direct accountability so responsibilities are clear and collaboration works better. 

For instance, the roles presented in both structures but with differing responsibilities: 

1. Project manager: 

- matrix structure: Manages projects across different functions, coordinating resources and schedules without direct authority over team members. - product-based structure: may not be a distinct role; responsibilities often absorbed by the product manager or product owner, focusing on product-specific initiative 

2. Functional managers (e.g. IT director, head of Security): 

- matrix structure: Oversee specific functions and allocate resources to vario projects, maintaining expertise within their domains. 

-product-based structure: May transition to advisory roles, providing expertise across product teams, or focus on strategic initiatives within their function. 

To demonstrate this change, here’s how the structure looks before and after the transition:

● Then, we developed a roadmap for the transition, considering our specif organisational characteristics and requirements; 

● Finally, we carried out the implementation of agile approaches in product management. 

It was crucial to identify which areas required more focus and resources to initiate the process of developing a product-focused approach within the company and change its structure smoothly. 

However, no change is expected to happen without many challenges and obstacles on the way. We had employees resisting the change to this new model as they had been used to the old matrix structure. We had to redefine workfl reporting structures, and performance metrics to fit into this new model. Ma team members were fearful of moving away from what was considered business as usual which caused more confusion with their resistance. 

In the early stages of the transformation, we implemented training programs designed to help employees acquire the right skills to operate in the new format. Regular communication was prioritised to address concerns, clarify 

expectations, and reinforce the vision behind the transition. Step by step, we reduced the resistance and built an environment for change to take place.

How managers interact with their teams has also changed in leadership roles. Managers are no longer leaders who have full direct control over the employees. After a successful transition, they have become facilitators for their team members, while remaining responsible for supporting and coordinating product teams. In real practice, managers had to focus their attention on strategic alignment and long-term vision instead of being entangled in the daily management of details, giving their teams the resources, tools, and information needed. As a result, the leadership became a force in creating a culture of accountability and trust, with the company reaching its goals in a much more dynamic way. 

After transitioning to a product-based structure, we noticed many positive changes in both the organisational dynamics and performance. Probably the most significa benefit is the increased speed of decision-making, with product teams having mo autonomy without traditional hierarchical processes that slowed things down in a matrix structure. More than that, the transparency between teams streamlined our operations, while the clear focus on specific responsibilities based on the role allow us to monitor progress while assessing teams’ efficiency. Also, the switch to product-based strict enabled more coordination across departments with significa reductions in conflicts over priority setting. Now teams are working together towa mutual goals, avoiding misunderstandings that had led to inefficiencies in the pas 

This strategic shift has created an environment for creativity and ideas to be rapidly translated into actionable outcomes. Teams now have a clear product focus that aligns their efforts more directly with customer needs and market demands. 

The new structure has put YCH Blue Digital Limited in a better position for further growth and success. Our journey from a matrix to a product-based structure has prepared the company to thrive in a dynamic business environment. We are very excited about the future possibilities of innovation with this transformation.