In a traditional company structure, departments are usually divided by function, such as sales, marketing, or customer service. While this helps maintain specialized expertise, modern business challenges may sometimes need solutions that extend beyond the capabilities of a single department. Relying solely on these siloed teams can lead to inefficient processes and hinder collaboration.

A cross-functional team can be the solution — a group of employees with diverse skills and expertise working together to tackle complex problems or achieve broader organizational goals. In this article, we will explore the definition of cross-functional teams, along with their advantages, disadvantages, and best practices for success.

What is a Cross-Functional Team?

A cross-functional team isn’t like a department where everyone is assigned to the same task. Instead of sorting employees by their specialties — like marketing, IT, or customer service — this type of team is composed of people with different expertise, backgrounds, and seniority.

Usually, these teams are made with a goal or project in mind. As such, members of a cross-functional team are chosen to help with a certain part of the team’s initial purpose. Compared to traditional employee sorting through departments, these teams are mobile, resilient, and efficient because of their diverse capabilities and experiences.

Advantages of Cross-Functional Teams

Due to their divergent nature, cross-functional teams have unique advantages compared to other types of groups in your company. Here are some of the benefits of deploying a cross-functional team.

Improved collaboration and communication

Though having team members from different departments may cause conflicts, the opposite can occur. Since a cross-functional team works together on a single goal, your team members will be more inclined to share their perspectives and experience. They’ll be able to learn more skills and knowledge from each other as they collaborate.

Higher efficiency and problem-solving

Delays and other detriments can be caused by insufficiencies in your company’s internal processes. However, with cross-functional teams, they’ll be able to identify any issues or obstacles as they go through their day-to-day operations. They’ll also be able to provide multiple angles to tackle an issue. Their all-around skillset and know-how can meet a wide list of challenges.

Increased level of innovation

With all their shared insights, a cross-functional team can potentially plan and implement long-term innovations. They’ll be guided by their comprehensive knowledge of the inner workings of your organization and the perspective of each department. This could be an upgrade to your company’s internal processes or massive improvements to their service or product. A well-structured cross-functional team can support the needs of the business at any level.

Disadvantages of Cross-Functional Teams

A cross-functional team can provide a substantial boost to your company’s development, but only if it’s properly executed. Here are some weaknesses of a poorly planned cross-functional team.

Increased risk of conflict

Since your team members come from other groups in your company, they’ll likely have their own priorities and duties. If they don’t find common ground, they may clash with how they would want to approach a certain task. This will result in a lack of meaningful progress in your team’s goals.

Emphasis on coordination

Team members in a cross-functional team must be communicative and understanding because they have to coordinate with several departments. It’s a vital skill that allows them to maximize their varied expertise. If they can’t align with several schedules or take note of the viewpoints of people outside their own field, your cross-functional team’s performance will slow down.

Higher use of managerial resources

Creating and maintaining a cross-functional team is a big investment. These initiatives used up time, energy, and money to properly apply the changes the team will implement. Managers will also need to change their priorities to oversee the team’s progress, especially when they don’t have a senior member on board.

Best Practices for Creating Cross-Functional Teams

A cross-functional team needs comprehensive planning to set it up for success. To avoid conflicts and setbacks, follow these practices to create a cohesive and cooperative cross-functional team.

Specify their goals and purpose

A clear, fixed, and specific goal is the driving force for a cross-functional team. It’s important for the team to know what problems they should solve, the processes they’ll improve, or the innovations they’ll plan for. The more distinct their purpose is, the easier it’ll be for them to collaborate with each other.

Select the right people

Not all employees can effectively contribute to a cross-functional team. It’s an interconnected group where people from multiple disciplines and fields cooperate. They should be communicative, open-minded, and responsible because they’ll constantly work with different departments.

Establish communication channels

To help foster a responsive culture, your team should know how and when to communicate with one another. Aside from regular meetings in the office, they should practice messaging each other through apps like Slack and Microsoft Teams. Asking questions, requesting help, or sharing insights are some signs of good inter-team communication.

Prepare for conflict

Disputes and clashes are bound to happen, so it’s best to prepare for it. A cross-functional team must be flexible and adaptable so that they can handle any delays or disruptions that may occur. Team members should also undergo conflict resolution training to help them settle issues if they come up.

Assign roles and leaders

Each member of your cross-functional team should have their own distinct responsibilities and tasks. Since they’re working outside of their department and managers, they need a clear understanding of their role in the team to guide their work. Collaboration can only happen when everyone is doing their assigned jobs.

In Summary

A cross-functional team unites employees from different departments to solve complex problems and achieve long-term business goals. With the help of a well-defined organizational chart, companies can easily identify and assemble the right mix of skills for more effective collaboration. Organimi is a powerful cloud-based org chart maker that simplifies the process of structuring these teams with its intuitive range of customization options.

What Is A Cross-Functional Team In Business?