Our friends at Textmetrics recently published an article (link) about Cross-functional governance in business. In it, they discuss the idea of a cross functional steering committee, creating buy-in and support among the higher-ups. We would like to take this concept a step further. While C-suite buy-in is important, cross functional teams can bring tremendous value to a business. Cross functional teams bring a collaborative approach in which representatives from different departments or functional areas work together to oversee and manage projects, initiatives, or processes that span multiple areas of the organization. Importantly, this approach breaks down silos that exist between departments and business functions, improves communication, and helps to ensure that decisions and actions align with the high-level business objectives that have been identified by the governance team.
Cross-functional teams typically include members from various departments such as marketing, sales, product development, finance, IT, and customer service. The team works towards common goals that benefit the entire organization rather than focusing solely on the interests of individual departments. Cross-functional teams are empowered to make decisions that affect multiple areas of the business, so that the decision making process includes newly relevant perspectives. Team members are jointly responsible for the outcomes of their decisions and actions, promoting a sense of shared ownership. They can develop unique solutions to business problems, that individually the siloed functions may not have developed on their own or even recognized as an issue facing the business.
By bringing together diverse expertise, these teams can better coordinate efforts across departments, reducing inefficiencies and conflicts. The diverse perspectives within cross-functional teams often lead to more innovative solutions and improved problem-solving capabilities. In the event of an emergent situation, coordination among team members will be enhanced because they will have a familiarity with each other, having already had the opportunity to work together; this has been the norm for many years among first responders who will regularly hold scenarios and drills with other agencies and functions.
Effective cross-functional governance requires strong communication skills and established channels for sharing information across departments. Cross-functional teams often involves ongoing evaluation and refinement of processes to enhance efficiency and effectiveness. In many cases, these teams rely on data and analytics to inform decision-making and track progress towards goals.
In order to implement effective cross-functional teams, companies should:
- Establish clear goals and objectives for the team.
- Include influential members from various departments.
- Empower the team and discourage hierarchical behaviors.
- Provide necessary resources and tools for collaboration.
- Encourage constructive conflict resolution.
- Regularly assess and measure the team’s performance and impact.
By implementing cross-functional teams, businesses improve problem solving, find new efficiencies, foster innovation, and better align their activities with overall organizational goals. This approach is particularly valuable in today’s business environment, where projects and initiatives often require input and coordination from multiple areas of expertise.
