Cross Functional Teams

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Part A Types of Teams

Cross Functional Teams

Describe the team and what makes it unique?

Cross-functional teams are "a group of people with a clear purpose representing a variety of functions or disciplines in the organization whose combined efforts are necessary for achieving the team's purpose. The team may be permanent or ad hoc and may include vendors and customers as appropriate" . There are two main characteristics that make cross-functional teams the unique. The first is that, team members are all from different departments of the company. Having group members come from different backgrounds allows the team to have a miscellany of experience and distinct levels of knowledge. Another thing that makes cross-functional teams unique is that they are able to work separate from the company management, and are often allowed to make their own decisions and implement their own ideas .

When is it appropriate to use the team?

It is appropriate to use a cross functional team when a company needs to solve a problem that impacts multiple levels of its business operations. The team can be used when a company is trying to either improve or coordinate work processes or activities, which cross organizational and departmental lines. The team is also used when a company has a problem to solve that requires a wide variety of knowledge and skills. The varied knowledge of these members allows for greater depth in these areas as well . Cross-functional teams "seem to be most effective in companies with fast-changing markets, such as the computer, telecommunications, and similar industries that value adaptability, speed, and an intense focus on responding to customer needs" .

What are the Advantages of this form of team?

With cross-functional teams you are able to reduce the time that a product spends in the developmental phase. This is important for companies with fat changing markets, such as computer, telecommunications, etc, which require fast changes to complete with similar companies. Cross-functional teams provide the framework for bringing team members from different fields of work with different knowledge and experience together. Cross-functional teams help you with customer satisfaction. Customer satisfaction is based on knowing your customers/ their needs and how your product or service can met those same needs. This team provides more innovation because you are bringing together people from different areas with different ideas. One final advantage's that a cross-functional team provides allow experts to share their knowledge with others. This exposure to different experts gives the individual an opportunity to get a different perspective on the product or service the company provides.

What are Disadvantages of this form of team?

There are disadvantages to using cross-functional teams; one being, there tends to be confusion as to what authority a team has in decision-making and idea implementation. Two, there is difficulty in creating clear vision or direction for the project. A main problem is that management is not always kept up to speed and this results in information not being passed along the chain of command. Thus, when using a cross-functional team there is also the problem of providing proper evaluations by supervisors. This is because they are not able to see what their subordinates are doing within the team or how they are working with their fellow employees, which in turn effects rewards and recognition. This is due to fact that most companies have their rewards programs based on single individuals and not on team accomplishment. Finally, the biggest disadvantage is that the team may from its team members bring their potential negatives attitudes towards other departments into the group. This can lead to inter-group conflict and decreased productivity .

Is Leadership Important?

Leadership is very important when using a cross-functional team. The team leader must select employees that have the proper knowledge, skills, and experience giving the nature of the project. To complete the assigned task, he or she must also make sure that the team has clearly defined goals. A responsibility of the leader is to make proper training is available to all the team members . Furthermore, the leader must ensure that all team members are working cohesively and not trying to further any personal goals or agendas, as employees are coming from different department and may have different methods of completing tasks. Without clear guidance of a lead or the team will not be able to accomplish their objective.

What companies have successfully used this type of team?

As earlier stated, companies with fast-changing markets, such as computer and telecommunication industries, have the most success in using this type of team.. In 188, Motorola used cross-functional teams to take over experiments for process optimization. This resulted in having the project completed in less time and overall yields improved by 5%. Motorola also used cross-functional teams to install new equipment and the layout of a manufacturing area in record time . In 10, Cincinnati Milacron used cross-functional teams to develop a plastic injection molding machine in record time, at reduced cost and with increased functionality .

What are critical success factors when using this type of team?

One of the most important things that a cross-functional team needs to succeed is a good leader. A good cross-functional team leader must have knowledge about each field or department from which team members have been selected . This range of knowledge is vital and allows the team leader to properly assign task to team members. This enables the team to take full advantage of the diverse skills and knowledge that each team member brings to the table.

Studies have shown that many groups develop through five stages. The first of these stages is called "forming". This stage is characterized by uncertainty. "Storming", the next stage is one of intragroup conflict. The third stage "norming" is where close relationships and cohesiveness are developed. The fourth stage is "performing". This is where the group is fully functional and work is accomplished. The final stage "adjourning" only occurs in temporary groups. The major concern in this stage is wrap up activities as opposed to task performance .

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