This is classic matricial org oriented towards delivery. I've tried plenty of different orgs, and this is the most efficient structure I've been part of, or led. It's one of the leanest way of building products in discovery mode.
We're doing this at Omada Health.
It comes with its own challenges, though, as every organization:
- the leadership team needs to accept a more bottom up approach to decision making (ie LT give direction and strategy, has a power of creating teams and defining their goal, but teams decide _how_ to reach these goals)
- goals and KPIs need to be clear to everyone in the org, and in the team themselves
- you need to be clear on the values of your teams at large or individually (focus on learning/exploration? Design "quality"? Timeliness of projects?)
- you also need a certain type of teammates. Ones that sometimes can accept unclarity, ones that want to be part of whole product development lifecycle
When you have these ingredients, it's beautiful to see unfold.