Getting More Out Of

Your Cross-Functional Team

 By Julie Murphree

 It was bad enough being assigned to the product development cross-functional team; what’s worse is they’ve made you leader! Your boss slaps you on the back and as he heads back to the office he says, “Hey no one’s better at getting group consensus than you. Just make sure this team’s a success. We have our performance goals matched to the outcome.”

 Now the pressure is really on!

 The use of cross-functional teams has gone on for years with a real surge in their use during the mid-1990s. So you don’t have to look very far in any major corporation to find newly formed teams with representatives of various departments meeting in the board rooms hammering out strategy for projects ranging from product development to revisions to a company’s code of conduct.

 Some of the most important cross-functional teams are formed to achieve competitive market advantage. Often, these types of teams are tasked with doing competitive intelligence, process improvement or even product lifecycle reviews. Their success or failure goes straight to the top and bottom line of the organization.

 In the 1990s, Chrysler’s celebrated cross-functional platform teams and Honeywell’s Building Controls Division teams illustrated the trend towards increased use of cross-functional teams. As a result of Chrysler’s use of cross-functional platform teams, they could produce cars within three years of concept versus the traditional four to five years previously required, a real time-to-market advantage against the competition. And at Honeywell, their widespread use of the team approach halved new product development cycle times with fewer total hours committed to specific projects and higher product quality testing.

 These cross-functional success stories are continuing today with more urgency than ever. The kicker is designing them in a way that successful results are absolutely, always ensured.

 Successfully Managing and Using Cross-Functional Teams

When managed properly, the cross-functional team can actually make life easier for team members. If not, the results can be nightmarish for the team.

 The power of a cross-functional team rests in the diversity of its members’ expertise, experiences and focus. However, this very aspect of its strength can be the team’s very weakness by producing miscommunication, conflicts, and ambiguous jurisdictions and accountability, and consequently less than optimal results.

 Any successful cross-functional team must begin with core foundational structures to the team. The following list covers what must be done first.

• Clarify the core purpose and end-results of the team and make sure each team member is clearly in agreement with the core purpose and end-results of the team.

• Build common goals and values based on the core purpose of the team.

• Establish a set of conflict resolution processes to resolve conflicts as they come up.

• Establish shared power structures, especially in order to clarify each person’s role. Team leaders must remember to act as facilitators and diplomats more than leaders.

• Establish mutual and individual accountability for each team member. If team results are tied into organizational and individual performance goals including year-end bonus results due to, for example, market share or net sales increases, the chances for team commitment will increase.

•  List formal and ongoing skills development. Team members can bring into the team those “wish list” skills they’ve desired to work on all along. Sometimes the team environment is the best place to improve presentation, verbal, and interpersonal communication skills. In addition, certain teaming environments are even conducive for learning technical skills that are hands on based on what the team is designed to produce for the organization.

• Formulate team reward systems that are separate from performance goals. These can be everything from end-of-project team celebrations to team point challenges with members earning the most points winning tickets to a ballgame.

Core Purpose and End-Results

Obviously for success, cross-functional teams must be very clear about their purpose. It’s at this juncture that everyone also shows full commitment to the purpose of the cross-functional team.

Write it out. Put in writing the core purpose of the team and team members commitment to the success of the team. Teams today literally sign their names to a document that spells out the core purpose of the team and each one’s commitment to success. Some corporate documents will also list each team members core abilities and what they are bringing to the cross-functional team. These documents are also often shared with the organization’s leadership. In addition, the final document of purpose (some organizations structure is like a mission statement) is posted next to the ground rules.

One mid-sized manufacturing firm required all their cross-functional teams to revisit the document of purpose once a month to ensure team members stayed on track. Losing focus within a cross-functional team is easy to do. Some teams find keeping the purpose of the team simple and straightforward key to success.

Conflict Resolution Processes and Basic Team Rules

Team members need to consider what rules they require to communicate productively. Once the team begins focusing on its task, the team’s diversity is sure to produce heated discussions. Brainstorm ground rules at an initial meeting, and record the rules in writing.

After all responses are recorded, review each rule, define all the rules listed, and mutually agree upon the ground rules. These rules should be posted, as stated earlier, with the document of purpose. Posting them in a visible place allows team members to reference them regularly.

In organizations where cross-functional teaming is used extensively, a common set of ground rules is established for all teams. Since certain ground rules can work for all teams, this saves time for newly formed teams to not have to reinvent the wheel.

Following are common ground rules. Use these as a guide and create your own based on your organization’s corporate culture.

• Value your role on the team.

• Value your teammate’s role on the team.

• Recognize that challenges will occur in a team setting but be ready to resolve them.

• All members will be contacted by the team leader a minimum of one week before each meeting for input on the agenda.

• All members must be present before a meeting begins.

• During brainstorming, no idea is dumb.

• All team meetings will begin on time.

• Unless notified ahead of a scheduled meeting, team members must be on time for meetings.

• Members have the option to say, “pass” when asked to express their opinion, and no other member may question their reason for passing.

• Members may not discuss team issues and problems away from other members unless previously agreed by the team.

• When conflicts arise between team members, those in conflict must meet with the current team leader outside of the team meetings to resolve the conflict.

• Team members are asked to respect other team member’s opinions.

• During team meetings, members must not interrupt each other.

Shared Power

If team leadership is rotated, then members must each be prepared for their leadership role. Often, a cross-functional team may have a 2- to 3-year life span and often leadership is rotated to balance the load of leadership.

For certain teams that have an indefinite lifespan, such as a commodity team, the leadership may be kept within the purchasing and supply management department since for cross-functional commodity teams the impact of the results will rest most heavily upon the purchasing and supply management department.

Shared power can also refer to the influence and role each member has within a team. If the cross-functional team is a user team testing new information technology (IT), the team member from the department receiving the new technology might have as much influence as the team leader that happens to be from the IT department.

Teams also are designed to recognize equal value to all members. If a member feels that their role is insignificant in comparison to other members, they’ll feel alienated or lack motivation for continuing to contribute. Always seek to recognize individual’s value to the team, in addition to the team as a whole.

Effective team leaders resolve this, in part, by giving equal attention and value to all opinions and contributions of all team members.

Mutual and Individual Accountability

Mutual and individual accountability for each team member is critical. Team rules help facilitate some of this but teams often must go beyond the generally established ground rules.

Tie accountability and end-results to performance goals. If team results are tied into organizational and individual performance goals including year-end bonus results due to, for example, market share or net sales increases, the chances for team commitment will increase.

One organization’s overall goal for the next five years was to increase net revenues by compound annual growth rate (CAGR) of 20 percent. So one cross-functional team tasked with new product development tied their performance into this five-year revenue goal. They and the company determined that any new product or product enhancement that came directly out of the team’s efforts would have a direct impact on their overall team and individual goals.

Accountability is also created by having team members “sign on the dotted line” when created the document of purpose. The credibility of individual participants is visible for everyone to see.

Formal and Ongoing Skills Development

As stated earlier, have team members list formal and ongoing skills development. Team members can bring into the team those “wish list” skills they’ve desired to work on all along. These skill set desires can be as simple as “Wanting to Speak Up More in a Group Setting.” What better place to learn your verbal skills than when you’re a member of a cross-functional team.

 Since the team environment can be one of the best places to improve presentation, verbal, and interpersonal communication skills, rotating meeting responsibilities and even presentations can help those who want to improve in this area.

 In addition, certain teaming environments are even conducive for learning technical skills that are hands on based on what the team is designed to produce for the organization. Teams evaluating new technology can help members hone certain computer skills that are, of course, beyond the basics.

 Since listed abilities and skills are in the document of purpose us the information to identify the team’s skills resources. By doing this, Team members can know not only that they need each other to accomplish team’s purpose, but also what they need from each other. Although members may have a long history of working together, they may not be aware of each other’s prior work experiences. These areas of experience strengthen the team.

 Reward Systems

Formulate team reward systems that are separate from performance goals. These can be everything from end-of-project team celebrations to team point challenges where members earning the most points due to hitting set targets that they win tickets to a ballgame.

 One organization always took their short-term cross-functional teams out to dinner with company leadership at the close of a successful project. In some ways simple rewards but still valuable for all members.

 If you and your cross-functional team can make application of these basic strategies you might not be so overwhelmed by your latest team assignment. And, yes, you can lead your team! Maybe the earlier expectation cited by your boss won’t feel so overwhelming now. Power on!