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Why Cross-functional Teams?

To face today's complex challenges, you need to incorporate a wide range of styles, skills, and perspectives.

Cross-functional Teams Leading Organizational Change

When seeking to change an organization, it's strategy or processes, leaders run into Newton's law that a body at rest tends to stay at rest. To achieve change, you should start with assembling a cross-functional team of like-minded colleagues to scale the cultural barriers and create change... More

Cross-functional Teams Leading Innovation

In the new era of systemic innovation, it is more important for an organization to be cross-functionally excellent than functionally excellent. Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as manufacturing, distribution, human resources, marketing, and customer relationships. To lead these expertise development efforts, cross-functional teams, either formal or informal, need to be formed. These teams can also find new businesses in white spaces between existing business units... More

How To Build Cross-functionally Excellent Teams

As a team leader, you must accept two concepts:

1. Your must shift your focus from self-perfection to organizational excellence.

2. You must require that your team members forgo the quest for personal best in concert with the group effort.

Case in Point: General Electric (GE)

As far as Jack Welch, the legendary former CEO of GE, is concerned, middle managers have to be team members and coaches. Welch gives a hypothetical example.³ Assume there is a multifunctional business consisting of engineering, marketing, and manufacturing components. And the business has the best manufacturing person it has ever had - someone with excellent numbers, who produces high-quality goods on time:

"But this person won't talk with people in engineering and manufacturing. He won't share ideas with them, and won't behave in a boundaryless way with them. But now we're replacing that person with someone who may not be quite a perfect but who is a good team player and lifts the team's performance. Maybe the predecessor was working at 100% or 120%, but that person didn't talk with team members, didn't swap ideas. As a result, the whole team was operating at 65%. But the new manager is getting 90% or 100% from the whole total. That was a discovery."⁴

Case in Point: Hewlett-Packard Way

To create an organization that could sustain its competitive advantage regardless of marketplace whims and what their competitors were building, HP founders based their corporate culture on the integration and reinforcement of critical opposites. This became known as the Hewlett-Packard Way. HP has achieved "what appears to be the greatest dichotomy: creating an environment that celebrates individualism, but at the same time one that is also wholly supportive of teamwork. Although HP people are taught to engage in cross-functional teams, they are also rated on the performance of decentralized business units and personal achievement."¹...More

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