Cross-functional teams include members who bring different types of knowledge and experience from areas such as finance, engineering, human resources, and marketing. These teams occasionally may draw on subject-matter expertise from outside the organization by inviting external consultants or customers to join a team. By combining people with diverse task-related backgrounds, cross-functional teams can take a broader approach to addressing a problem or completing a set of activities. This can lead to new ideas and more creative solutions. It can also make a team's efforts more efficient and effective by including information that can help avert risks or poor outcomes.
Team
Cross-functional teams combine people with different knowledge and perspectives.
Example of a Cross-Functional Team
Many business activities require cross-functional collaboration to achieve successful outcomes. A common example is service improvement. To better meet customer expectations and achieve higher satisfaction rates, a company first needs to understand what customers are looking for. The marketing department is responsible for gathering that type of customer data. Operations staff members have expertise in how to design the process for delivering a service, so they would need to be involved in making any changes to that system. The human resources department oversees training, and employees may need new skills to succeed with the new process. If any information technology is involved in supporting the service improvement, then people from that department should be on the team. Finally, accountants may be needed to identify any new costs and additional savings. In this example, the team brings together people from five different functional areas.
Challenges of Cross-Functional Teams
Even though diversity of knowledge and perspective is the big advantage of cross-functional teams, it can also be a source of problems. People who work in the same discipline or area have a common understanding and a terminology for their work that is unknown to others. Shorthand expressions or common acronyms that are familiar to one person may be confusing to others. This can make communication between members of a cross-functional team difficult and subject to misunderstanding.
Cross-functional teams may be more likely than less complex teams to have members with divergent perspectives on how work gets done. For instance, engineers value precision and attention to detail, while those who come from more creative areas such as marketing may prefer a less rigid approach. These differences in styles may also be reflected in the personalities of team members. It can take extra effort to collaborate when you have to take into account the preferences and styles of widely dissimilar individuals.
In some organizations certain departments have more status than others. A common distinction is between those in areas that contribute directly to revenue, such as sales and manufacturing, and those that do not, including support departments like purchasing and IT. Perceived differences in relative importance or credibility can undermine the effectiveness of cross-functional collaboration.