cross-functional teams
(noun)
Teams with members that have diverse skill sets, enabling synergy across core competencies.
Examples of cross-functional teams in the following topics:
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Cross-Functional Teams
- A cross-functional team comprises people from different departments and with special areas of expertise working to achieve a common goal.
- Cross-functional teams include members who bring different types of knowledge and experience from areas such as finance, engineering, human resources, and marketing.
- Even though diversity of knowledge and perspective is the big advantage of cross-functional teams, it can also be a source of problems.
- 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.
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Types of Teams
- Depending on its needs and goals, a company can use a project team, a virtual team, or a cross-functional team.
- Common types of teams found in organizations include project teams, virtual teams, and cross-functional teams.
- Members of a project team often belong to different functional groups and are chosen to participate in the team based on specific skills they can contribute to the project.
- Cross-functional teams combine people from different areas, such as marketing and engineering, to solve a problem or achieve a goal.
- It is common for an organization to have many teams, including teams of several types.
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Teams
- A cross-functional team is a group of people with different functional expertise working toward a common goal.
- Cross-functional teams often function as self-directed teams responding to broad directives.
- The growth of self-directed cross-functional teams has influenced decision-making processes and organizational structures.
- Cross-functional teams consist of people from different parts of an organization.
- Technical, financial, marketing, and all other types of information must come in a form that all members of a cross-functional team can understand.
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The Role of Teams in Organizations
- By combining various employees into strategic groups, a team-based organization can create synergies through team processes.
- In organizations, teams can be constructed both vertically (varying levels of management) and horizontally (across functional disciplines).
- The underlying assumption of a well-functioning team is one of synergy, which is to say that the output of a team will be greater than the sum of each individual's contribution without a team architecture in place.
- Some organizations have a need for strong cross-functional teams that enable various functional competencies to align on shared objectives.
- Recognize the role of a team in an organization, and illustrate the team process.
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Cross-Functional and Self-Managed Teams
- A cross-functional team is fully or partially self-managed group of employees with different functional expertises but with a common goal.
- In small businesses, the team structure can define the entire organization.
- Teams can be both horizontal and vertical.
- For example, every one of the Whole Foods Market stores, the largest natural-foods grocer in the United States developing a focused strategy, is an autonomous profit center composed of an average of 10 self-managed teams, while team leaders in each store and each region are also a team.
- A cross-functional team consists of a group of people working toward a common goal and made of people with different functional expertise.
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Choosing Team Size and Team Members
- Team size and composition affect team processes and outcomes.
- The optimal size and composition of teams depends on the scope of the team's goals.
- Meredith Belbin did extensive research on teams prior to 1990 in the UK that suggested that the optimum team size is eight roles plus a specialist as needed.
- The mix of knowledge and expertise on a team is also important.
- For this reason, cross-functional teams may be larger than groups formed to work on less complex activities.
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Virtual Teams
- Similar to task forces and cross-functional teams, networked teams frequently bring together people with different expertise to bring broad perspectives to discussing an issue or problem.
- Parallel teams are highly task-focused and draw on individuals from different functional areas and locations.
- Functional teams are comprised of people from the same department or area who collaborate on regular and ongoing activities, examples of which include providing training, executing marketing initiatives, and conducting research and development.
- Team-member skills: Beyond their functional expertise and experience, virtual team members need to be effective users of technologies such as video conferencing and other collaboration tools.
- When virtual teams cross national boundaries, differences in language and culture require the ability to negotiate barriers to communication and collaboration.
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Team-Based Structure
- The team structure in large organizations is considered a newer type of organization that is less hierarchical, less structured, and more fluid than traditional structures (such as functional or divisional).
- Teams that include members from different functions are known as cross-functional teams.
- One aspect of team-based structures that will likely persist indefinitely is the integration of team cultures within an broader structure (e.g., a functional structure with teams interspersed).
- Such integration allows for the authority and organization of a more concrete structure while at the same time capturing the cross-functional and projected-oriented advantages of teams.
- The project team might be allocated a certain number of hours a month to devote to team objectives; however, members of the team are still expected to work within their respective functional departments.
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Negotiating
- Due to globalization and evolving business trends, more companies are now using negotiation teams.
- Teams can effectively collaborate, pool resources, and brainstorm solutions to break down and manage complex negotiations.
- More knowledge and wisdom can be harnessed in cross-departmental and cross-functional teams than with individuals operating in information silos.
- Writing and noting customer specifications, listening to buyer concerns, and communicating specific actions are roles team members must satisfy during the negotiation process.
- The capacity base of a negotiation team can also reduce errors and strengthen the long-term buyer-seller relationship because of the improved accuracy and wider range of knowledge that can be brought to the negotiation.
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Functional Structure
- An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.
- Correspondingly, the company's top management team typically consists of several functional heads (such as the chief financial officer and the chief operating officer).
- Each group of specialists can therefore operate independently with management acting as the point of cross-communication between functional areas.
- Recent trends that aim to combat these disadvantages include the use of teams that cross traditional departmental lines and the promotion of cross-functional communication.
- Each different functions (e.g., HR, finance, marketing) is managed from the top down via functional heads (the CFO, the CIO, various VPs, etc.).