Gatis Dradeika: When traditional hierarchy is no longer enough for global teams

When an engineer in Latvia is waiting for approval from a manager in Denmark while a deadline is "burning" in Germany, the problem isn't the people. The problem is the structure. Traditional hierarchy – one team, one boss, clear subordination – works effectively at a local level but often loses flexibility in an international environment. The more spread out an organisation is, the more critical the question becomes: how do you ensure that colleagues working thousands of kilometres apart maintain a unified direction? 

This challenge can be solved by implementing a matrix organization model. Essentially, it has two management levels: functional or local management and project or cross-border management. In other words, an employee works both within a local team and in international projects where goals across different countries and functions are coordinated.

This approach does introduce complexity, as decisions are shared among multiple stakeholders. However, it solves a common problem: teams in each country working in

Three prerequisites for making the matrix work

Structure doesn't manage itself. For it to work, three things are necessary.

First, roles must be clearly defined. Who makes the decision, and who delivers the result? If this isn't documented and understood at all levels, confusion and conflicts arise.

Second, communication must be intentional. This dual accountability not only divides responsibilities but also encourages regular alignment of local decisions with global strategy.

And third, trust and a clear division of duties must be built. If different views on priorities emerge, they need to be discussed early, not resolved behind closed doors or via email. Open communication, mutual trust, and professional interaction – regardless of position and location – are the foundation of successful matrix management.

Why the matrix benefits everyone

In my experience, a well-implemented matrix model transforms a multi-layered structure into an environment where the organization, leaders, and employees all benefit.

In Caljan's case, this approach shows up in everyday work. For example, if a need for a new solution arises in Denmark, it can be developed together with colleagues in Latvia or Germany without waiting for hierarchical approval. This allows us to bring in the best specialists, use resources efficiently, and avoid duplicating specialized skills.

The leader's role in a matrix is also different, as it requires developing a different set of skills. In a traditional hierarchy, decisions can be executed based on formal authority – even when the team doesn't fully agree. But that option doesn't exist here: without the ability to persuade and inspire people, projects can take too long. Success depends on creating conditions where everyone wants to give their best. It's this skill – getting results through collaboration – that separates a leader from a manager.

For our employees, it opens doors to professional variety. By experiencing different ways of organizing work, they develop adaptability and the ability to work effectively across cultures.

Discipline as a competitive advantage

Of course, the matrix isn't a perfect solution. One of the biggest challenges is that not all employees immediately understand how it works, since they're used to having one clear manager. So, when two reporting lines appear, it can be confusing. For managers, it requires sharing decision-making power. If one emphasizes quality while another prioritizes speed, both need to find common ground.

This approach is demanding for everyone involved. That's why at Caljan we work systematically on information flow – we define management roles, ensure regular information exchange, and build a culture that supports giving and receiving feedback. This disciplined approach helps maintain clarity and confidence that decisions are made efficiently.

When these conditions are in place, challenges turn into advantages. The matrix model enables faster decision-making, promotes cross-country collaboration, and speeds up professional development. When one market slows down, resources can be shifted to another. If one team experiences staff turnover, work doesn't stop – support comes from other countries.

This way, the company maintains scale while staying agile and coordinated. It's a modern work culture that turns geographic spread into a strategic advantage and creates an environment where people want to work and grow.