Cross-functional teams include members from different departments and can be temporary or permanent. They can work quickly and efficiently, encouraging innovation and considering the needs of different departments. Companies need to carefully select team members to ensure they work well together and avoid interpersonal conflicts.
Cross-functional teams are units within a business that include members from various departments of the business. The team can be assembled temporarily to work towards a specific objective and a short-term objective, or it can be a permanent unit designed to solve ongoing problems in the business. Using cross-functional teams can be a highly effective business strategy for companies across industries.
The origins of the cross-functional team seem to date back to the 1950s, when companies began to explore the idea of teaming up with members from multiple departments. By combining people with different areas of experience and skill, a company can create a very small functional unit capable of accomplishing a lot. For example, a company working on new product development can move the process much faster with cross-functional teams than with sequentially moving the product from department to department.
Members of a cross-functional team work together, but also keep the needs of their home departments in mind. For example, someone in marketing will remember marketing needs when discussing goals with team members and can shape the direction of decisions made by the team in ways that benefit the marketing department. Likewise, a person in the department that focuses on packaging and distribution would consider issues related to that department, and so on. This can reduce inefficiency down the line by ensuring that the needs of different departments are considered at every step of the decision-making process.
Cross-functional teams can be tasked with making decisions, developing products, and solving problems facing the company. They can work quickly and highly efficiently and can be given a lot of autonomy. Using cross-functional teams in operations can encourage innovation, as people can be more comfortable exploring and presenting new ideas in small groups.
When building cross-functional teams, companies need to think about their needs and how to reach the right mix of people. Usually, a team leader is assigned to coordinate the group, but as the group is small it is essential to ensure that everyone works well together. Interpersonal conflicts can decrease efficiency, in addition to creating an unpleasant work environment, which makes it difficult for the team to achieve its goals. On the other hand, team members who think a lot alike may not make a great team because they will have a hard time understanding the big picture or thinking about problems in new ways.
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