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Statements on Management Accounting

L E A D E R S H I P S T R A T E G I E S & E T H I C S

C R E D I T S

T I T L E

This statement was approved for issuance as aStatement on Management Accounting by theManagement Accounting Practices Committee and itsSubcommittee on SMA Promulgation. The Institute ofManagement Accountants extends appreciation to theSociety of Management Accountants of Canada (SMAC)for its collaboration, and to Victor M. Rocine, CMC ofChangeMASTERS, who drafted the manuscript.

Special thanks go to Randolf Holst, SMAC Manager,Management Accounting Guidelines, for his continuingoversight during the development of the Statement,and to the members of the focus group that providedadvice and counsel, including MAP Subcommitteemembers Dennis Daly and Richard Berk.

Managing Cross-Functional Teams

Published byInstitute of Management Accountants10 Paragon DriveMontvale, NJ 07645-1760www.imanet.org

IMA Publication Number 94295

Copyright © 1994 in the United States of America by Institute of ManagementAccountants All rights reserved

ISBN 0-86641-232-8

Statements on Management Accounting

T A B L E O F C O N T E N T S

Managing Cross-Functional Teams


I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1

II. Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1

III. Defining Cross-Functional Teams . . . . . . .2

IV. Objectives of Cross-Functional Teams . . . .3

V. The Role of the Management Accountant .3

VI. Implementing Cross-Functional TeamGuidelines . . . . . . . . . . . . . . . . . . . . . . .3Providing Top Management Championshipand Support . . . . . . . . . . . . . . . . . . . . . .4Choosing and Defining the Right Project .4Selecting the Appropriate Team Members .5Supporting Development of a Team Charter . . . . . . . . . . . . . . . . . . . . .7Ensuring an Effective Team Start-Up . . . .8

VII. Task-Oriented Tools and Group ProcessTechniques . . . . . . . . . . . . . . . . . . . . . .12Task-Oriented Tools . . . . . . . . . . . . . . .13Group Process Techniques . . . . . . . . . .14

VIII. Dynamics of Cross-Functional Teams . . .16Barriers to Effective Team Performance .16

Stages of Team Development . . . . . . . . .17

IX. Individual and Organizational Implications 21The Individual Perspective . . . . . . . . . .21The Organizational Perspective . . . . . . .22Evaluating Team Performance . . . . . . . .24

X. Why Cross-Functional Teams Can Fail . . .25

XI. Conclusion . . . . . . . . . . . . . . . . . . . . .26

Appendix: Cross-Functional Team Rating Form27

Bibliography . . . . . . . . . . . . . . . . . . . . . . . .29

ExhibitsExhibit 1: Task-Oriented Tools and Group

Process Techniques . . . . . . . . . .12

Exhibit 2: Stages of Team Development . . . .18

I . RAT IONALEThe power of the microchip, a developing globaleconomy, and a consumer revolution in expecta-tions are driving unprecedented change and forc-ing acceptance of a new competitive order. To sur-vive, organizations must deliver value. Private andpublic organizations face the challenge to befaster, cheaper, better, more reliable, moreresponsive and more convenient. Success todayis no indicator of future success, or even survival.

The challenges of this new competitive orderdemand a full view of processes, new thinkingand integrated solutions implemented withgreater speed. Success in the new competitiveorder requires cooperation and partnerships withcustomers, suppliers, employees, unions, share-holders, and even traditional competitors.Managing complexity becomes a prioritybecause no single function, unit, or departmentcan have authority or control over the final prod-uct or service. Traditional organizational struc-tures are unable to respond quickly and under-stand the interdependencies between processesand the multiple, simultaneous changes requiredto achieve the desired outcome, change, orimprovement. For example, functional decisionsmay be made without adequate managementaccounting participation.

Continuously creating value for customers andother stakeholders increasingly requires cross-ing functional, program, organizational, techno-logical, and even industrial boundaries. Itrequires making the most effective use of anorganization’s resources, particularly its people.Teams of varying types are being increasinglyused to conduct research, to design better prod-ucts and services, to bring them to market, to re-engineer processes, to improve operations, toidentify and solve problems, and to createwealth. The capability of organizations to contin-

ually and effectively organize, deploy, and inte-grate cross-functional teams is becoming a best-in-class differentiator.

While most organizations find such teams worth-while, many are not using them to their greatestpotential. Other organizations suffer team over-use, unnecessary meetings, an inability to sus-tain team initiatives, and problems with account-ability and ownership. Experience may castdoubt on the usefulness of cross-functionalteams. This waste and lack of realized potentialhave caused some organizations to greatlyreduce their use of cross-functional teams.

I I . SCOPEThis guideline will be of value to organizations ofall sizes, types, and industries that are consider-ing, or already have implemented, cross-functionalteams. It will help organizations understand:l the value and benefits of cross-functional

teams;l the prerequisites for high-performing cross-

functional teams;l guidelines and best practices for planning,

organizing, building, maintaining, and evaluat-ing cross-functional teams;

l basic group problem-solving tools and therequirements for effective group process anddecision making;

l the importance of accommodating and balanc-ing individual, team, and organizational needs;

l why cross-functional teams can fail; andl the contribution management accountants can

make.

This guideline will also assist the cross-functional teams themselves, including helpingthem achieve a well-defined mandate, with spe-cific, meaningful expectations and time lines.

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I I I . DEF IN ING CROSS-FUNCTIONAL TEAMSA cross-functional team is a small group of indi-viduals that cross formal departmental bound-aries and levels of hierarchy. The group is com-mitted to a common purpose or goal of improve-ment; it acts and works as a unit—communicat-ing frequently, cooperating and providing mutualsupport, coordinating activities, drawing uponand exploiting the skills and capabilities of theteam while considering the needs of individualmembers.

Cross-functional teams are typically formed onthe assumption that a small group is better ableto accomplish a purpose or goal than either indi-viduals acting alone or in a large, permanentlystructured group. Results should be better usingcross-functional teams, both in the quality of theoutcome and in the commitment to carry out theassociated changes and improvements.

There can be a variety of cross-functional teamscovering:l a range of subjects and issues (e.g., customer

service, research, product design, productlaunch, business strategy, internal manage-ment practices);

l different periods and frequencies (disbandedafter a one-time project or meeting togetherregularly);

l different levels or degrees of complexity (e.g.,networks of linked cross-functional teams,each team working on a distinct aspect of acomplex undertaking); or

l varying degrees of delegation or empowerment(e.g., authorized only to analyze problems andmake recommendations, or established as aself-managed work team).

Besides recommending action, such teams areincreasingly responsible for implementation

(e.g., design of complex new products or servic-es, which include design, engineering, markettesting, development or manufacture, systemsdelivery, and even marketing and sales).

Above all, cross-functional teams are units ofperformance. This guideline uses the followingideal of a high-performing team:l a common, compelling purpose—All team

members are committed to achieving a sharedvision, the shape of which they have influenced;

l shared leadership roles and role flexibility—Team members share responsibility for teamprocesses, development, and outcomes;

l individual and mutual accountability—Individuals are accountable for individual con-tributions and the team shares mutualaccountability for the team’s collective performance;

l a common, agreed work approach—The teamdiscusses and decides how it will proceed andhow each member will contribute to the team’sefforts;

l trust, respect and openness—Members sharemutual respect and caring; communication isopen and honest; they explore various ideasand encourage an active problem-solvingapproach;

l dedication to performance and implementa-tion—The team is dedicated to enhancing theorganization’s performance, for example byimproving productivity, quality, value to the cus-tomer, and employee satisfaction;

l measurable performance goals—The teammeasures its own performance by assessingcollective work products and progress towardits mission; and

l supportive organizational structures, systems,and practices—Cross-functional teams cannotmeet these measures on their own; nor canthey be sustained in organizations that are

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“unfriendly” to the team concept or that havetraditional bureaucratic cultures, systems, peo-ple management processes, and practices.

Appendix A includes a High-Performing TeamRating Form, based on these characteristics,which may be used throughout the cross-functional team’s life.

IV. OBJECT IVES OF CROSS-FUNCTIONAL TEAMSIn situations requiring the simultaneous applica-tion of multiple skills, experience, and judgment,cross-functional teams generally can get betterresults than a collection of individuals operatingindependently within confined job roles andresponsibilities. Successful cross-functionalteams achieve a balance of skills, accountability,and commitment. Organizations can have sever-al objectives for creating cross-functional teamsincluding:l overcoming the limitations of hierarchical struc-

tures—Teams can facilitate dialogue and anunderstanding of processes that cross hierar-chies, departments, and regions. Teams canidentify and break down barriers and systemicconstraints that hinder organizational effec-tiveness (i.e., creating value for the customer).Cross-functional teams can also increase thechance of desired change taking place bybringing together representatives from the var-ious organizational interests that have a stakein the area or issue under investigation;

l improving the quality of decision making—Teams can provide a more thorough view of awhole organization and process(es);

l increasing organizational flexibility—Teams canbe quickly assembled, deployed, refocused,and disbanded; and

l increasing organizational productivity—Because teams have clear goals, they aremore productive than groups that have no

clear performance objectives. Teams are apowerful mechanism for making better use ofthe organization’s employees.

V. THE ROLE OF THE MANAGEMENT ACCOUNTANTManagement accountants have a significant roleto play in helping cross-functional teams achievetheir goals. Management accountants bring tocross-functional teams several key capabilities:l training and skills in measuring, analyzing, and

reporting information focused on user needs;l an organization-wide or business-process-wide

perspective; andl organizational credibility and an attitude that

focuses on issues or problems.

Management accountants contribute to the teamprocess and performance in a number of differ-ent roles, such as executive champions, teamleaders, facilitators, members, or outsideresources. Management accountants:l provide, collect and assess critical team infor-

mation;l help establish goals and set team priorities;l contribute their technical and functional

expertise and knowledge in using problem-solving tools and decision-making techniques;and

l participate in creative team problem solving.

V I . IMPLEMENTING CROSS-FUNCTIONAL TEAMGUIDEL INESImplementing winning cross-functional teamsgeared to achieving results is not a matter ofchance. It is a repeatable process that can beguided by following certain basic steps, including:l providing top management championship,

including appropriate resources and organiza-tional support;

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l choosing and defining the right project;l selecting the appropriate team members;l supporting development of a team charter;l ensuring an effective team startup; andl connecting organizational and team goals.

Providing Top Management Championshipand SupportPeople are truly the organization’s most valuableresource. Unless top management displays thisfundamental belief, teams can expect no morethan lip service. Any success will then be solelyattributable to the team members’ perception ofthe value of the project, their own dedication,and their self-empowerment to improve theircompany.

Top management has to understand the commit-ment required for developing a successful teamand a team system capability within the organi-zation. They must be willing to allocate the nec-essary resources—personnel, money, autonomyand authority, training, process facilitation, legal,computer, and information services, etc. Theymust also allocate adequate attention to theteam process and allow for the time to solveproblems and try solutions.

Choosing and Defining the Right ProjectIt is management’s challenge to choose a projectand an objective of substance, which directlyaddresses a critical business issue.Fundamental questions for senior managementto address are: what is the strategic importanceor driver for an initiative? Is a cross-functionalteam the best approach? What is the linkbetween team and organizational objectives? Towhat extent is top management prepared to del-egate authority and allocate resources for theteam to truly succeed? What is their commit-ment to carrying out the team’s findings and rec-ommendations?

The following list suggests several criteria forselecting projects for cross-functional teams.The more criteria a product, service, or processfits, the more it qualifies as a project with strongpotential for significant results. Good candidatesare products, services or processes that:l require more than one department’s functions,

or organization’s participation to createimprovements or change;

l are highly influential in the capture, retention,or loss of customers;

l are central to the mission of the enterprise;l are vital to work done by others;l are the greatest time consumers (e.g., loan

applications, tax forms, financial reports); andl are sources of error, complexity, cost, or dissat-

isfaction (e.g., invoices, physical inventory).

Once the focus of the potential undertaking isidentified, organizations should test the pro-posed project against the following critical suc-cess factors for cross-functional teams:l Are the proposed undertaking and its objective

challenging, yet possible?l Is it compelling and is there a sense of

urgency?l Is success clear, specific (discrete), and meas-

urable?l Does it have broader organizational signifi-

cance, such as helping to develop a new prod-uct, process, or organizational capability?

l Is it based on existing organizational readi-ness and a willingness to change?

l Is it achievable with available resources andauthority?

l Is it sufficiently compelling, important, chal-lenging, and exciting that top management isprepared to accept some mistakes? (This willinfuse the team with sufficient commitment totry new things, to go for a breakthrough, to tryanything that might work.)

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If the project cannot satisfy these critical suc-cess factors, the organization should considermore conventional means of dealing with theissue.

Selecting the Appropriate Team MembersMembers of cross-functional teams should beselected to provide diversity, balance, and com-plementary skills. A team embodying those qual-ities will be more creative and productive.Selecting the right mix of people involves weigh-ing at least three factors:l technical or functional expertise, i.e., educa-

tion, training, knowledge, experience, and per-spectives;

l problem-solving and decision-making skills, i.e.,the abilities to identify problems, developopportunities, evaluate options, and decidehow to proceed; and

l interpersonal skills and compatibility, i.e., per-sonal styles, temperament, communications,process support and intervention skills, andfacilitation.

Generally, the size of cross-functional teamsvaries according to the scale and complexity ofthe undertaking. A large project team mayinclude several teams, in either a hierarchical oropen-systems structure.1 Effective teams maybe as small as three individuals or as large astwenty. For teams that actually work together, fiveto eight members is generally considered opti-mal, all other factors being equal.

Larger numbers of people have trouble interact-ing constructively as a group, much less agreeingon specific actions that should be taken. Smaller groups (ten or fewer people) are far

more likely than larger groups to successfullywork through their individual, functional, and hier-archical differences toward a common plan andhold themselves jointly accountable for theresults. When teamwork values break down andpressures to produce increase, larger groupsinvariably come to rely on formal hierarchy, struc-ture, policies, and procedures. Beyond more chal-lenging social and group dynamics, large groupsalso face logistical issues, such as finding mutu-ally agreeable meeting times and facilities.

Large teams (over ten) are advised to segmenttheir undertaking and break into several projectteams. Progress meetings with the larger group orteam can be held for coordination, briefings, majordecision points, and other common concerns.

Smaller groups or teams (i.e., four or fewer mem-bers) also may have some disadvantages. Theseinclude limited input, too narrow a perspective,insufficient creativity, and too few people to carryout assigned tasks in an optimal time.

Ideally, prospective team members should volun-teer for team membership. Team commitment isgreatest when employees seek out assignmentsor are recruited to join teams. Autonomy tochoose team assignments increases the likeli-hood of members taking responsibility for work-ing through conflicts, making confrontations pro-ductive, and taking the necessary risks to makethe team work.

If teams deal with matters affecting front-line orfield operations, representation from theseareas, whether blue-collar or white-collar, ismandatory. Terms of labor union agreements andpersonnel policies may present challenges oftheir own in the selection process; however,experienced front-line personnel bring valuableinsights, and their involvement will break down

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1 For example, a single car model may have up to thirty toforty cross-functional teams. A team responsible for a partic-ularly complex item often has specialized lower-level supportgroups. The thirty or forty teams and their support groupsare integrated or coordinated by a total systems team orproduct management team.

barriers to change and improvement. In a union-ized firm, unionized team members representboth worker and broader union concerns. Beyondworker ideas and insights, unionized member-ship can develop or cement relationships andfoster greater employee commitment.

Individuals from outside the organization—mostnotably suppliers, collaborative partners, or cus-tomers—are also logical potential additions tocross-functional teams, depending upon thenature and scope of the undertaking. Suchefforts create valuable opportunities to build,maintain, and extend relationships to the benefitof all concerned.

Successful cross-functional teams generallyrequire several roles. The most common include:

l executive champion—This is the executiveproject team sponsor, customer, and advocateof the project. The executive champion is abridge between senior management and theteam. He or she also helps ensure that thenecessary project resources are available andintercedes upon the team’s behalf in removingany barriers. The executive champion is notgenerally a member of the team, but mayattend key meetings or parts of meetings.

l team leader—This is the overall project manag-er, responsible for basic team organization,leadership, and coordination. The leader’sexact role and style may vary according to thestage of team development, team memberpreferences, agreed ground rules, organiza-tional culture, and the team’s charter. A majorresponsibility of the leader is creating an envi-ronment that encourages participation and anatmosphere of shared leadership. The leaderis critical to creating and maintaining an emo-tional bond among the members that will helpthem to stay motivated and act as a team.

l team facilitator—Team facilitators ensureeffective group processes and dynamics bykeeping the team moving in a constructivedirection. Facilitators typically act as coachesto team leaders—preparing for team meetingsand debriefing leaders after meetings. Duringteam meetings, facilitators observe and inter-ject only when the team strays from the problem-solving and decision-making process.Facilitators are most often used to bring problem-solving, communication, interperson-al, and teamwork skills to teams who lackthem. A facilitator helps a team to turn its col-lective attention back to its purpose.

l team recorder—The team recorder acts as theteam’s secretary and is responsible for record-ing meeting minutes, notes, and team deci-sions. Meeting minutes are distributed soonafter adjournment to remind team members oftheir assigned tasks. The recorder may also beresponsible for the team’s project notebook.

l team member—Members appropriately partici-pate in team meetings and accept tasks andresponsibilities as assigned by the teamleader or the team as a group.

The members selected to serve on the team willsuggest the importance of a proposed undertak-ing and the organization’s commitment and seri-ousness. If the team includes corporate doers,contributors, and achievers, and individualsappropriate to the task, the firm is clearlytelegraphing to the team and to the rest of theorganization its intent to take the team seriously.

Given that time is spent on team assignmentsout of the mainstream of corporate promotionsand advancement, the duration of team member-ship may become an issue. Individuals shouldbe expected to sign on for the life of the project.For projects lasting several years, this expecta-tion goes against the norm, in most North

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American companies, of promotions or transfersevery two or three years. The alternative, howev-er, is that the company must face the conse-quences of reduced team effectiveness becauseof member turnover.

Supporting Development of a Team CharterIn cross-functional teams, members are expect-ed to bring a perspective, a set of skills, and abody of knowledge and experience that they willuse on behalf of the whole organization, not torepresent the people of a particular function ordepartment. A clear and agreed upon under-standing of the team’s mission and the role ofeach team member are important in breakingdown departmental barriers.

Management usually initiates and negotiates acharter with the team to create that understand-ing. The charter is the team’s terms of reference;it represents a contract between the team andexecutive management. As such, it should beagreeable to both groups. Typically, a team char-ter includes:l a description of the project and its primary

focus (multiple issues should be avoided asthey may lead to conflict and ambiguity);

l why the project was selected;l why the team members were chosen;l the outcomes desired by management;l any constraints, parameters, or related issues

that may affect the project, including the decision-making authority vested with theteam;

l expectations for team commitment, such astime required for a typical team member;

l the support management will provide;l permission to explore all aspects of the prod-

uct and process;l any limitations top management considers as

necessary; and

l management’s commitment to seriously exam-ine and implement as many of the recommen-dations as are feasible.

The most important issue for team charters toaddress is that of outcomes. Teams have agreater chance of succeeding when they are pre-sented with clear, worthwhile, and compellinggoals. Each characteristic—clear, worthwhile, andcompelling—is important and quite different.

The outcomes desired by management must beclear—discrete, measurable, and have dead-lines. “Raise morale,” “increase productivity,” or“improve the quality of work life” are wanderinggeneralities. They sound impressive, but theyprovide a poor standard by which teams canjudge their progress. “We will increase through-put on this line by 15% within ninety days” or “wewill reduce the necessity for call-backs to cus-tomers by 10% by March 1” are meaningfulspecifics. Those who sponsor teams and thosewho serve on them can tell whether these goalsare accomplished. (This assumes, of course,that the company has a feedback system to pro-vide the necessary data.) However, while it isimportant that goals be clearly defined theyshould not be so narrowly focused that no roomis left for creative thinking or entrepreneurialspirit.

Desired outcomes must be worthwhile to thosewho must put forth the effort to achieve them.Senior management may praise the goals andcurrent periodicals may enthusiastically promotethem, but what really matters is that the teammembers believe the goals are worthwhile andthat their sustained effort is required to reachthem.

Desired outcomes may be clear and worthwhileand still fail if team members and executive

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management do not also believe that they arecompelling. They are compelling when they mustbe accomplished within a limited timeframe.

Most organizations have many goals. To realizethe benefits afforded by teams as an integrativedevice capable of balancing and reconciling mul-tiple subgoals, organizations need to communi-cate the priority of strategic goals to teams andgive teams the authority and autonomy toresolve conflicts and manage their progresstowards these goals over time.

To this end, the first task of the team should beto thoroughly review, discuss, refine, and adoptthe charter, including amendments as may benecessary. For large undertakings, this task maytake several meetings, preliminary diagnostics,and additional team members and resources.The team should be encouraged to name itselfand its project. This process allows the team todistill its essence and promotes team owner-ship, signalling the transfer of the undertakingfrom executive management to the team.

The team must be granted authority commensu-rate with its assigned task. The authority may liewith the team or the team leader specifically.Even if senior management asks the team onlyto do fact finding and make recommendations, itmust clearly delineate the team’s decision-making authority. The success of a single teamundertaking and, even more so, the long-termorganizational potential of the team concept isdependent upon clearly defined authority.

Ensuring an Effective Team Start-UpIf the team charter plants the seeds of success,it is the team’s launch that will often decidewhether the seeds will take root. The factors par-ticularly important in executing an effective teamstart-up are: (i) social bonding; (ii) rules of con-

duct; (iii) review of the team charter; (iv) teammission and vision statements; (v) project plan;(vi) project notebook; (vii) training; (viii) goodmeeting management; and (ix) effective commu-nications.

Social bondingOrganizations often make a serious mistake earlyin a project’s life by devoting insufficient time tobuilding a cohesive team. Teams commonlyengage in a task-oriented approach too quickly,before team members have a chance to developa sufficiently high comfort level that encouragestrust and cooperation. It is reasonable to expectthat if trust is not developed early in the project,teams will be less willing to engage in informalcommunication (the key to high cooperation).Team socialization and team building are requiredearly in the project’s development to set thestage for future project success.

Rules of conductAll groups develop rules of conduct. Effectiveteams make them explicit early in the process.The ground rules required relate to: l attendance—When and how often meetings

will be held?l meeting protocol—How will meetings be run?

(e.g., be prompt, no interruptions to take mes-sages)

l team protocol—How will members interact?(e.g., everyone contributes)

l team behavior—What type of behavior isacceptable? (e.g., comment on anything, nosilent disbelief)

l analytical orientation and approach—How willwe carry out our task? (Teams should keep thediscussion at the “values” level to start. Thefirst meeting is too soon to decide methodology.)

l accountabilities—Who is accountable for whatand when? A sense of mutual responsibility is

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required. All members must feel responsiblefor team outcomes. Thus, members will needto be clear on the outcomes for which they areindividually and jointly responsible.

l ethics—How will the team deal with confiden-tiality or other ethical concerns?

l conflict (constructive confrontation)—How willmembers deal with differences of view?

l decision procedures—How will decisions bemade? (e.g., “What does consensus mean?”)

Review of the team charterAn important first task for the team is to reviewand discuss the “draft” team charter as initiallyprovided by senior management. All the basic ele-ments will be there, if management has plantedthe seeds appropriately. Reviewing the charter,getting comfortable with its implications, develop-ing a common understanding of the assignedtask, exploring ambiguities and contradictions,and anticipating the time and work commitmentsimplied by the charter are all important.

Right at the start it is important to get it right.The initial meeting will lay the team’s foundationand will set the tone and style for all that will fol-low. Reviewing the charter offers a constructiveway to quickly develop team cohesion and under-standing. If management has provided less thana complete charter or none at all, then the teamshould complete it.

The team should share the revised charter withsenior management for its concurrence. Anychanges must be signed off by both parties.Acceptance of the charter by the team and sen-ior management represents the agreement andcommitment of both parties to undertake andsupport the project.

Team mission and vision statementsThe review of the team charter leads appropri-ately to developing a team mission statement—a clear, concise, statement of the team’s reasonfor existing. The mission statement is the team’sinterpretation of its purpose, stated in theteam’s own language. It should help the team tocontinually focus on the issue it has undertakenand the intended outcome. The team’s missionshould obviously complement and be compatiblewith the organization’s mission statement.

The team should also prepare a team vision anda set of project goals. The vision statement andproject goals answer the fundamental questions:What do we want to become? What do we standfor? What do we want to achieve? How will wemeasure our success? The team should not for-mally try to prepare a team vision too early in theprocess. The team vision belongs to the team,not executive management; it represents genuine“team ownership” of the assigned challenge.

The function of the mission statement and teamvision is threefold: (i) they help the group devel-op as a team; (ii) they provide a basis for furtherclarification or redefinition of the team’s goalwith senior management; and (iii) they are abasis for ongoing direction and control duringteam activities.

Project planThe team should develop its own project plan,which provides a disciplined framework for plan-ning, deploying resources, and controlling theteam assignment. Its purpose is to help theteam achieve its mission. A project plan answersthe fundamental questions: How will we fulfill ourmission? How will we achieve our goals andvision? Like the mission statement, the plan is atool to provide ongoing direction, assessprogress, and control team activities. The plan

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includes key assumptions, critical events, orinputs that may affect the team’s success. Theplan also specifies resource requirements, mile-stones (events or measures of progress), interre-lated tasks, and a method for periodically review-ing progress. The plan is the keystone of soundteam project management.

Project notebookEffective teams usually organize and maintain aproject notebook. A notebook helps the teamstay organized, aids the team in reporting toexecutive management, and provides a corpo-rate resource for other teams, work groups, andindividuals. Small projects may require only a fewpages of documentation. Large projects mayrequire several binders. Notebooks usuallyinclude project documentation such as:l team charter;l team mission statement;l project plan;l schedules;l instruments to gather data;l meeting minutes or notes;l correspondence;l team outputs; andl working papers.

TrainingTeam members may require and benefit fromtraining in interpersonal skills such as, but notnecessarily limited to:l listening skills—Listening is a crucial, but often

overlooked, aspect of communicating.Listening skills, such as paraphrasing ideas,reflecting implied meanings and feelings, andbeing sensitive to nonverbal behavior, can pro-vide clues to hidden messages;

l assertiveness skills—Finding a means of self-expression is the other main componentof interpersonal competence. Often individualshave ideas or feelings that go unexpressed,

either because of fear of others’ reactions orbecause of group dynamics. Assertivenessimplies stating ideas clearly, without unneces-sary jargon and without the intent of “winning”a point;

l conflict management—Conflict is not alwaysan obstacle to team performance; it may fuelthe creativity necessary to complete the task.The value of cross-functional teams is embod-ied in the differences members contribute tothe team’s collective effort. These same differ-ences also provide a platform for conflict.Successful teams effectively integrate differ-ences. Conflict resolution is accomplished bya combination of listening and assertivenessskills in a collaborative atmosphere; and

l advocacy and inquiry—Effective communica-tion, particularly in groups, requires a balanceof advocacy and inquiry. Advocacy involvestelling and persuading others. Lack of advoca-cy is manifested by withholding (not sayingmuch) or withdrawing (stepping back andwatching) behavior. Positive inquiry includesasking questions, exploring others’ views, andmaking reasoning explicit. In a less positiveform, inquiry involves leading questions andmaking few direct statements.

Good meeting managementMeetings can either be the biggest time wasteror the most effective tool for improvement. Sincethe meeting is the major medium for teams,team effectiveness is highly dependent uponeffective meetings.

The frequency of meetings will depend uponmany considerations—the stage in the project,the deadline, other team member commitments,etc. Teams can easily suffer from meeting toofrequently or not enough. Meetings should notbe held for the sake of getting together but totake advantage of getting together. If meetings

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are too infrequent, the team and project maylose momentum and direction. If too frequent,team morale and productivity may falter.

The following checklist offers suggestions forgood meeting management.l Before the meeting

3 Determine meeting objectives.3 Decide if other than regular team members

should be there.3 Decide where and when meetings should

be held.3 Send out an agenda or meeting objectives

ahead of time.3 Arrange for equipment.3 Arrive early to set up the room and greet

team members.

l Starting the meeting3 Begin on time.3 Review and confirm meeting objectives.3 Review action items from the previous

meeting.

l During the meeting3 Structure the content and discussion in

stages (e.g., proposition, evidence, discus-sion, conclusions, action).

3 Keep the group focused.3 Facilitate discussion and participation of all

team members. 3 Summarize major conclusions and all

decisions.3 Use a flip chart as the team’s collective

note and think pad.

l Ending the meeting3 Establish and review the action list with

responsibilities and deadlines.3 Set the date, place, and objectives for the

next meeting.3 End on a positive note and on the agreed

time.

l After the meeting3 Prepare and distribute meeting minutes or

notes.3 Follow up on action items.3 Check with members on progress and

issues before next meeting.3 Plan carefully for the next meeting.

A technique used in some organizations to focusgroup effort is to sum and post the total hourlypersonnel costs of the team members beforeeach meeting. This represents most of the directcosts of the team getting together.

Effective communicationsEffective communication is critical to teams,both within the team and with the rest of theorganization. Poor communication is a major bar-rier to teamwork and innovative performance.The team leader and executive managementhave the preeminent roles, but all team mem-bers have a responsibility.

One example of poor communication is the fail-ure to integrate effectively the lateral processes(teams) and vertical processes (functional activ-ities). One does not replace the other. Functionalmanagers must be kept abreast of what is hap-pening. Major breakdowns occur when the feed-back loop is not operating. Team membersshould keep their functional managers apprisedof the relevant team progress and particularly ofissues affecting the functional department.Publicizing the team’s work to the rest of the

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organization (e.g., through newsletters, staffmeetings, correspondence) allows others in theorganization to contribute information, insights,and ideas to the team. It also provides a periodic “reality check” for the team, promotingconsistency with team and organization objec-tives and minimizing the risk of groupthink.

Ensuring effective communications is an ongoingprocess that affects all functional areas through-out the project. Executive management shouldencourage the communication of team success-es to the rest of the organization. Such commu-nications serve to recognize team contributionsand create a positive and supportive team environment.

VII. TASK-ORIENTED TOOLS AND GROUPPROCESS TECHNIQUESEffective teams need to develop group competen-cies. Group competencies may be categorized intotwo clusters: (i) task-oriented tools, such as groupdata gathering, analysis, and problem solving, and(ii) group process techniques, such as group deci-sion making, team building, and team mainte-nance. The task-oriented tools focus on the tech-nical aspects of the team assignment. The groupprocess techniques focus on the human aspectsand help the group work smoothly as a team.

Training in both task-oriented tools and process-oriented techniques helps teams reach their fullpotential. Organizationally, a common trainingapproach and the development of group compe-tencies create a degree of uniformity within and

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Task-Oriented Tools

BenchmarkingAffinity RelationsTime-Based ManagementQuality Function DeploymentActivity-Based CostingPolicy DeploymentValue Analysis

Cost of QualityDesign of ExperimentsVariables ChartingStratificationProcess Capability AnalysisSamplingStatistical Process Control

Flow ChartCheck SheetPareto AnalysisHistogramsCause & EffectData CollectionRun ChartControl Chart (UCL/LCL)Scatter ChartAttributes ChartAffinity Diagram

Specialized

Enhanced

Basic

Group Process Techniques

Creative Thinking TechniquesAdvanced Group Facilitation TechnologiesIndividual/Group AssessmentsAutomated GroupwareRisk Analysis ProcessInteraction Process AnalysisBody Language Analysis

LeadershipConflict ResolutionPriority SettingGroup Facilitation—GeneralCoachingMentoringNegotiating

Effective MeetingsDecision MakingBrainstormingMultivotingNominal Group TechniqueDecision GridForce Field AnalysisProblem SolvingGoal SettingTeam Effectiveness RolesTeam Life-cycle

EXHIBIT 1. TASK-ORIENTED TOOLS AND GROUP PROCESS TECHNIQUES

Source: ChangeMASTERS ©. Reprinted with permission.

between cross-functional teams. The most effec-tive training is done in team sessions while work-ing together on the team project. This “just-in-time” approach trains teams when theyare ready to use the specific techniques andtools. It is more relevant than mass training andis geared to achieving measurable results. It guar-antees a return on the investment of training dol-lars. Unless training is immediately put into prac-tice, retention and use are practically nonexistent.As well, the training can evolve as the team andproject develop. Exhibit I lists some basic, moreadvanced, and specialized task-oriented tools andgroup process techniques.

Task-Oriented ToolsThe following is a preliminary introduction to somebasic, task-oriented tools that teams use toincrease their performance:l Checksheets;l Cause and effect charts;l Pareto charts;l Run charts;l Control charts; andl Scatter diagrams.

For further problem solving tools and explana-tions, see Scholtes, 1988.

Data collection forms (checksheets)A frequent barrier for cross-functional teams isformed by a lack of data. Indeed, the absence ofdata is a major reason problems go unsolved forso long. The need for data can occur at almostany stage in the team process—selecting anddefining a problem, testing a hypothesis aboutcauses, or checking the effectiveness of a pro-posed solution. Data collection need not beexpensive nor elaborate. For example, a simple,well-designed form that can be filled with X’s ortally marks (i.e., a checksheet) is often all that isrequired.

Cause and effect (or “flshbone”) charts2

Cause and effect charts allow teamsto map out a list of factors that theythink will affect a problem or desiredoutcome. It is an effective tool forstudying processes and situations,

for deciding on an approach to data collection,for identifying root causes, and for planning. Itcan also help a diverse team better see the bigpicture.

Pareto chartsPareto charts identify and display the80-20 rule; that is, whenever severalfactors contribute to some overalleffect, a few of those items account

for the bulk of the effect. Pareto charts are use-ful throughout a project: early, to identify whichproblem should be studied; later, to narrow downwhich causes of the problem to address first.Since Pareto charts draw everyone’s attention tothe important factors where the payback is likelyto be greatest, they can be used to focus teameffort and build consensus.

Run charts (or time plots)Run charts help teams to examinedata for trends or other patterns thatoccur over time. A time plot shows

the data points plotted in time order with a lineconnecting the points. The frequency of time canbe hourly, daily, weekly, monthly, yearly—any peri-od that is relevant to the subject under review.

Control chartsTeams use control charts to monitora process and display its relativestability to help in identifying spe-cial causes, and to assess the

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2 Also referred to as an Ishikawa diagram, after KaoruIshikawa, who developed the technique as an effective meansof encouraging and focusing employee involvement in improv-ing business processes.

U

L

effects of process control and improvement.They are similar to frequency charts, but theyalso show the range of variation built into thesystem, the boundaries of which are marked byupper and lower statistical formulas from datacollected on the process.3 Control charts help todistinguish between variation inherent in aprocess (variation from a “common cause”) andvariation arising from sources that come and gounpredictably (“special causes”).

Scatter diagramsA scatter diagram visually plots therelationship between two variables,such as two process characteris-tics. Whereas a dot plot allows ateam to look at only one process

characteristic at a time, a scatter diagram allowsteams to look at the relationship between twocharacteristics.

Group Process TechniquesGroup effectiveness studies show that groupsuccess is highly influenced by two groupprocess factors—the generation of ideas andthe quality of decisions. For critical decisions,team consensus is both the most effective andmost difficult form of decision making.

Consensus is not necessarily unanimity, noreveryone being totally satisfied, nor a majorityvote. Consensus is finding a proposal acceptableenough that all members can support it. That is,no member opposes it. Reaching consensusinvolves exploring the needs and interests of allparties until a creative and unified team solutionemerges from the consideration of all positions.

Reaching consensus requires time, active partic-ipation of all members, skills in communication(listening, conflict resolution, and discussionfacilitation), open-mindedness, and creative think-ing. The chief advantage of reaching consensusis that group commitment to the decision shouldproduce an increased likelihood of action.

An optimal solution considers the needs of allparties involved, of the organization, and theproblem and solution itself. Not every decisionneeds the support of everyone. Every effortshould be made to reach consensus on primaryissues, such as the team’s mission, primarygoals, and major milestones (i.e., progresspoints, accomplishments, deliverables).

Many disagreements are really about wordingrather than substance. Agreeing as a group onthe meaning of words can go a long way towardhelping achieve consensus. Some structuredgroup process techniques that are used by teamsto aid in reaching consensus are:l Brainstorming;l Multivoting;l Nominal group techniques; andl Decision grids.

Other less structured, more relaxed methods arejust as effective. Teams should be encouraged toexperiment and find their own styles.4

BrainstormingBrainstorming is a method to help a team createmany ideas quickly. Brainstorming can be usedat various stages of team problem-solving todecide possible causes, to generate solutions,or for other purposes. A successful brainstormlets people be as creative as possible and does

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3 Control limits are not the same as specification limits, norare they related to budgets, targets, or objectives. Controllimits say nothing about how a process is supposed to per-form or what managers hope it can achieve. They only indi-cate what a process is capable of doing.

4 For further group process techniques and concepts, seeScholtes, 1988.

not restrict their ideas in any way. This freeformapproach can generate excitement in the group,equalize involvement, and often result in originalsolutions to problems.

The general sequence of events in a brainstormsession is to:l Review the topic, defining the subject of the

brainstorm. Often this is done best as a “why,”“how,” or “what” question: For example, Whatare the possible ways to inform and trainsupervisors and hourly workers on all threeshifts? How can we get all the information weneed regularly to complete these forms ontime?

l Give everyone a minute or two of silence tothink about the question.

l Invite everyone to call out their ideas. Themeeting facilitator should enforce the groundrules (“No discussion! Next idea...”).

l One team member should write down all ideason the flip-chart, pausing only to check accuracy.

MultivotingMultivoting is a way to select the most importantor popular items from a list with limited discus-sion and difficulty. This objective is accom-plished through a series of votes, each cuttingthe list in half; even a list of thirty to fifty itemscan be reduced to a workable number in four orfive votes. Multivoting often follows a brainstorm-ing session to identify the few items worthy ofimmediate attention.

The general sequence of events in multivoting isto:l start with a list of items and number each

item;l combine similar items, but only if the group

agrees. Renumber all items if necessary;l allow each member to vote for several items

(at least one-third of the total number ofitems);

l have members silently record their preferrednumbers (items) on separate sheets of paper;

l have the facilitator collect the ballots andrecord and consolidate the results;

l reduce the list by dropping those items withthe fewest votes. There are no fixed rules onhow many votes an item should have. Makingthis decision is generally self-evident to theteam; and

l repeat the procedure until the desired numberof items remains.

Nominal group technique (NGT)The nominal group technique is a more struc-tured approach to generating a list of optionsand narrowing it down than either brainstormingor multivoting. It is called “nominal” becauseduring the session the group does not engage inthe usual amount of interaction typical of a realteam. Because of its relatively low level of inter-action, NGT is an effective tool when all or somegroup members are new to each other. NGT isalso good for highly controversial issues or whena team is stuck in disagreement.

NGT has two parts—formalized brainstormingand making a preferred selection.l formalized brainstorming:

3 define the task as a question;3 write it down for all to see; discuss and clar-

ify until everyone understands;3 team members silently generate ideas by

writing them down on a paper;3 in plenary, prepare a list of ideas using brain-

storming;3 clarify and discuss the ideas as required;

and3 consolidate the list (this becomes the ballot

for part two of NGT).

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l selecting preferences:3 if the number of items is large (say over 50

items), use multivoting to reduce the list;3 each member receives a ballot and is

allowed a few weighted votes. For example,for 20 items, each member might receivethree votes. Weight the first choice threepoints, the second choice two points, andthe third preference one point; and

3 record votes in plenary. The item with themost votes is the group’s first choice, theitem with the second highest score is sec-ond, and so on.

Decision gridThe decision grid is another structured grouptechnique to aid consensus building. It can beused to narrow the range of alternatives to amore workable number by pairing each alterna-tive with another. Team members vote for thepreferred alternative in each pair. After all possi-ble pairs are considered, the votes are tallied.Those alternatives receiving the lowest totalnumber of votes can be eliminated. A grid isused to support this process.

V I I I . DYNAMICS OF CROSS-FUNCTIONAL TEAMS

Barriers to Effective Team PerformanceTeams do not take shape immediately. Theyevolve, developing their own dynamics. The vari-ous forces at work in a team can cause signifi-cant barriers to effective team performance,stunting various stages of a team’s developmentif they are not properly managed. Examples are:l different points of view;l role conflict;l power struggles;l groupthink; andl lack of commitment.

Different points of viewThe purpose of a cross-functional team is to har-ness divergent skills and talents toward specificobjectives. Coming from different departmentsor even organizations, there is a strong likelihoodthat team members will see the world from theirown points of view. The tendency to stereotypeand devalue other views is heightened when theproject is highly technical and members speaktheir own codes and languages. If there is anyhistory of conflict among organizational units,the representatives from these units may carrytheir prejudices into the team, potentially sub-verting attempts to create common objectives.Often these factors are not apparent until theteam actually begins work. Conflict resolution,advocacy and inquiry, team building, and teameffectiveness role modelling are among themany possible methods for constructing a com-mon team vision and appreciating the contribu-tions of others.

Role conflictProject or matrix organizations are not only theproduct of ambiguity; they create ambiguity aswell. Team members are in multiple roles andoften report to different leaders, possibly creat-ing conflicting loyalties. They often do not knowwhich constituency to satisfy. The “home” groupor department has a set of expectations, per-haps including certain benefits from representa-tion on the team. Once it starts on the task, theteam develops a life of its own, with norms, val-ues, and expectations that might vary from thosedepartments. For example, a department may berun in mechanistic, hierarchical fashion while theproject team may be more democratic and partic-ipatory. Team members might also experiencetime conflicts due to the demands of projectmeetings that compete with traditional jobresponsibilities. The pull of these conflictingforces can be either exhilarating or a source of

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tension for team members. Organizations needto be sensitive to such discontinuities for teamparticipants.

Power strugglesWhile role conflict often occurs horizontally (i.e.,across units), conflict can also occur vertically,because different authority levels are represent-ed on the team. Individuals who occupy powerfulpositions elsewhere may try to recreate thatinfluence in the group. Often such attempts toimpose ideas or to exert leadership over thegroup are resisted, especially by others who holdsimilar positions. There can be subtle attemptsto undermine potentially productive ideas withthe implicit goal of winning the point rather thanlooking for what is best for the team. In addition,lower status individuals may be ignored, thuseliminating a potentially valuable resource. Whilesome struggle for power is inevitable in a diversegroup, it should be managed in a way that mini-mizes potentially destructive consequences.

GroupthinkGroupthink refers to the tendency for a highlycohesive group, especially one working on spe-cial projects, to develop a sense of detachmentand elitism. To maintain cohesion, the group cre-ates shared illusions of indispensability and una-nimity. There is a reluctance to examine differentpoints of view, because these are seen asthreats to the group’s existence. As a result,group members may censor their opinions, andthe group proceeds to compromise the inherentquality and morality of its decisions. Makingteams aware of the groupthink phenomenon mayhelp avoid this trap.

Groupthink may also exist on a wider scalethrough entrenched organization philosophies,further underlining the need for team leaders

and executive champions to create and supportan environment for creative thinking.

Lack of commitmentTeam leaders should deal with lack of commit-ment from members early in the life of the proj-ect and attempt to change negative views imme-diately. Insecurity is often a major reason for lackof commitment. Team leaders should try todetermine why insecurity exists and work onreducing team members’ fears.

Stages of Team DevelopmentA team develops in stages, over time, before itbecomes really productive. Some groups neverget past a certain stage. The most commonmodel of team development involves fourstages:l Form—Initially people are concerned with what

other people are like, what the group will doand what will be required and expected ofthem.

l Storm—After people settle in, their lack ofexperience with each others’ different stylesaffects productivity and commitment. Needsfor recognition and influence create conflict.

l Norm—Because of the conflict, people evolvebetter ways to both deal with each other andachieve group goals. They develop mutuallyacceptable patterns of work and rules.

l Perform—With the energy released from inter-personal tensions and having identified waysto help each other, people address the workissues at hand.

The role of the team leader and facilitator is tohelp the team members get through the formingand storming stages as quickly as possible sothey can get down to work.

Providing an understanding of the stages a teampasses through can alleviate team members’-

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18


EXHIBIT 2. STAGES OF TEAM DEVELOPMENT

STAGE 1—FORMTeam Formation & Orientation

Low Productivity

Moderate Morale

People are concerned with what otherpeople are like, what the group will do,their role, what will be required and expect-ed of them. People see themselves as indi-viduals. They begin to understand thegroup’s assigned task. The group is not ateam but a gathering of individuals broughttogether for a common purpose.

l Moderately eager with high expectationsl Tentative and a bit shy toward team

membersl Some anxiety and skepticism about the

task ahead.l Testing situation & central figuresl Dependency on authority & hierarchyl Need to find a place & establish oneself.

l What is the group’s purpose?l What methods and procedures will we

use?l What will be acceptable behavior?l Does group have the right members?l What will be expected of us?l How will we be judged?

l Discuss business context of assignmentl Review Team Charterl Write Team Mission Statementl Develop Code of Conductl Introduce:

3 Stages of Development3 Characteristics of high performing

teamsl Organize social timel Encourage open discussion of concernsl Use a team assessment questionnaire

Stage Characterizedby:

STAGE 2—STORMDissatisfaction & Conflict

Low to Moderate Productivity

Low Morale

After people settle in their different waysof doing things. Productivity and commit-ments are affected by their lack of experi-ence in dealing with each others’ differentstyles. Needs for recognition and influencecreate conflict. Members disagree on theteam’s approach and resist collaborations.

l Resistant to attempting differentapproaches

l Increased tension and disunityl Defensive and competitivel Feeling incompetent and confusedl Experiencing polarities of dependency

and counter dependencel Experiencing discrepancy between hopes

and realityl Dissatisfied with dependency on authority

l How will we resolve conflict around pur-pose and methods?

l How will we deal with group problems?l How will we make decisions?l How will leadership be decided?

l Develop Project Planl May introduce:

3 Characteristics of effective team members

3 Dealing with differences3 Task & relationship skills3 Effective listening3 Leadership & empowerment3 Managing conflict3 Giving & receiving feedback

GeneralDescription ofTeam Stage

Team MembersFeelings

Team Concernsand Questions

SuggestedLearningActivities toAssist TeamDevelopment

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EXHIBIT 2. STAGES OF TEAM DEVELOPMENTSTAGE 3—NORM

Resolution & Development of HomeBase

Moderately High Productivity

Improving Morale

Because of the conflict, people evolvebetter ways to both deal with each otherand achieve group goals. They developmutually acceptable patterns of work,roles and rules. Members accept individ-uality of members. The job is gettingdone positively and effectively.

l Decreasing dissatisfactionl Resolving discrepancies between

expectations and realityl Resolving polarities and animositiesl A sense of personal accomplishmentl Developing harmony, trust support and

respectl A sense of belonging to teaml Freedom to express ideas and construc-

tive criticisml Mutual respect

l Will we be able to meet our mission?l Are we proceeding satisfactorily?l How can we improve our team

effectiveness?

l May introduce:3 Norms & groupthink3 Openness & self disclosure3 Consensus decision making3 Group facilitation3 Collaboration

l Use group problem solving and decisionmaking tools

l Use group creativity techniques


STAGE 4—PERFORMSynergy & Production

High Productivity

High Morale

Because of the conflict, people evolve bet-ter ways to both deal with each other andachieve group goals. They develop mutual-ly acceptable patterns of work and rules.The team is now an effective, cohesiveunit where much productive work is beingdone.

l Excitement about participating in teamactivities

l Working collaboratively and interdepend-ently

l High trust and friendshipl High creativityl Sense of team strength and confidencel Sharing leadershipl Pride in team accomplishmentsl Performing at high levels

l How will senior management respond toour recommendations?

l What will happen to the team upon com-pletion?

l How can we continue to do good thingstogether?

l Introduce more advanced group process& problem solving techniques

l May introduce:3 Overcoming barriers to effective team

work3 Managing change3 Personal development techniques3 Visioning3 Creative thinking3 New role of leader as trainer, coach,

mentor

GeneralDescription ofTeam Stage

Team MembersFeelings

Team Concernsand Questions

SuggestedLearningActivities toAssist TeamDevelopment

concerns about progress. Exhibit 2 provides asummary of the types of feelings and concernscommon to each stage, suggested team learningactivities, and team leader style and behavior foreach stage of team development.

There are two additional stages of developmentthat may follow the perform stage—conform andtransform. Teams at the perform stage may func-tion well, producing outstanding results, but theywill not do so on an ongoing basis unless theycan make it to the transform stage. Team perfor-mance lags during the conform stage, whichtakes place when:l team members are less inspired by their vision

and sense of purpose;

l trust, mutual respect, and open communica-tion decreases; and

l the team, despite changes, is unable to breakfrom its current frame of reference.

The transform stage is the other alternative avail-able to teams. It is the next higher level of learn-ing and performance. It is characterized by thefollowing qualities:l a renewed sense of purpose is created;l new goals are stated and group process skills

are increased;l team leadership is shared among all

members;l the group develops enhanced appreciation and

respect for individual differences;

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EXHIBIT 2. STAGES OF TEAM DEVELOPMENTSTAGE 1—FORM

Team Formation & Orientation

Low Productivity

Moderate Morale

High directive/Low Supportive

l Set realistic and attainable goalsl Clarify tasks and relationshipsl Set standards and limitsl Make decisions and give directionsl Teach and show skillsl Give feedback on performance and

group dynamicsl Provide low to moderate support


STAGE 2—STORMDissatisfaction & Conflict

Low to Moderate Productivity

Low Morale

High Directive/High Supportive

Supportivel Facilitate group decision makingl Listen activelyl Accept & understand differencesl Acknowledge difficultiesl Confront challengel Build supportive relationshipsl Manage conflictl Praise helpful behavior

Directivel Redefine goals and expectationsl Provide visionl Redefine roles & responsibilitiesl Continue skill development (technical,

interpersonal & group)l Attribute meaningl Facilitate interdependence

LeadershipStyle andBehavior

l team collaboration is the preferred approach toachieving high performance; and

l the team thrives on continuous learning.

IX . INDIV IDUAL AND ORGANIZAT IONAL IMPL ICAT IONSTeams both reflect and affect the organizationsof which they are a part. The language and inter-action patterns of the organization’s structures,systems, and cultures shape its teams andaffect their effectiveness. The tension caused bythe contradictions of teamwork explains much ofthe gap between ideal and actual team perfor-mance. These contradictions exist:l within individuals, as members adjust to

becoming team members, to be both individu-als and parts of a team, to having a functionaland a team identity, and to being independentand dependent;

l within teams, as members grapple with theparadoxical demands of the team task, includ-ing the challenge of integrating different func-tions, skills, and perspectives; and

l within organizations, as firms shift from tradi-

tional bureaucratic systems to adopt new workforms, such as cross-functional teams.

The Individual PerspectiveIndividual employees want work that offersachievement and fulfillment. Achievementmeans working and performing well. Fulfillmentcomes from work that provides a sense of mean-ing and authenticity. Individuals seek recognitionfor excellence and quality, but with freedom fromconstraints on initiative and creativity.

In teams, individuals want not only to be part ofa winning team, they want more pleasure, free-dom, and opportunity to participate. They expectopportunities and support for the developmentof new competencies. They seek a sense of com-munity and an atmosphere of tolerance andopenness, working cooperatively with differentkinds of people to achieve something larger thanthemselves.

To provide individuals with the essential organi-zational support for high performing teams, exec-

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STAGE 3—NORMResolution & Development of Home

Base

Moderately High Productivity

Improving Morale

Low Directive/High Supportive

l Facilitate group functioningl Involve group in setting goals and

standardsl Involve group in decision makingl Encourage & acknowledge

performance

STAGE 4—PERFORMSynergy & Production

High Productivity

High Morale

Low Directive/Low Supportive

l Share informationl Link to the larger organizationl Manage team goal settingl Facilitate team performance review

process


LeadershipStyle andBehavior

EXHIBIT 2. STAGES OF TEAM DEVELOPMENT

utive management must address five concernsof a typical team member: (i) Will I receive orga-nizational credit for my team contribution? (ii)What will I learn or gain in terms of personaldevelopment from my team involvement? (iii) Willmy team involvement advance or hinder mycareer? (iv) How will my team contribution beassessed and by whom? and (v) Will I have therequired resources and support to fulfill my teamcommitment?i) Organizational credit—The answer to this

concern may evolve over time with the orga-nization’s experience with cross-functionalteams. There are firms who do not evaluatean individual’s contribution to the teameffort or factor this element into the organi-zation’s merit system. If they want cross-functional teams to work, firms are advisedto provide a mechanism to do these things.

ii) Personal development—Team involvementmust meet individual needs, preferences,and aspirations. Opportunity for personaldevelopment and growth motivates employ-ees. Organizations should ensure that theselection of team members and their prelim-inary roles complements the individual’sneeds as well as those of the team andorganization. The performance managementsystem should recognize and reward individ-uals’ learning and accomplishments inteams.

iii) Career advancement—The organizationneeds to show, through its promotion poli-cies and, more importantly, its promotionpractices that team assignments lead toadvancement; that team involvement is partof new, flexible, nonbureaucratic behavioressential to the organization’s future suc-cess; and that there is a hierarchy of morechallenging and exciting team assignments.

iv) Individual assessment—Individual teammember performance can be evaluated by

the individual’s functional manager, by theteam leader, by peers on the team, or by thewhole team. Individuals deserve to receivefeedback on their performance. Theydeserve to know in advance how their perfor-mance will be assessed, by whom, and usingwhat criteria or expectations.

v) Resources and support—The organizationmust also provide the necessary and appro-priate resources for the individual to con-tribute to the team effort. This may meanreallocating responsibilities to enable theindividual to devote the necessary time andattention to team tasks and meetings. Itmay mean training the individual in prepara-tion for a team assignment (e.g., in interper-sonal skills). It may require the functionalmanager granting to the individual theauthority to commit appropriate functionaldepartment or work unit resources to theteam effort.

The Organizational PerspectiveFor cross-functional teams to flourish, they mustfind a breathable organizational atmosphere. Itis executive management’s role to address thisbroader organizational and cultural requirement.This assumes that the executive managementhas an interest in cross-functional teams thatextends beyond a one-time or occasional useand wants to build a long-term organizationalcapability to manage and benefit from cross-functional teams. The concept of teamwork runscounter to the prevailing social and organization-al culture of North America. North American cul-ture is deeply rooted in values of individuality,independence, competition, and individualaccomplishment. Business culture, in particular,is premised on the beliefs and values that:l competition produces better effort and

outcomes;

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l resources need tight control to be efficientlyutilized;

l individual accountability is essential to perfor-mance; and

l selection, evaluation, and reward are bestdone on an individual basis.

These fundamental beliefs find organizationalexpression in bureaucratic structures and prac-tices; systems of functional responsibility, indi-vidual accountability, appraisals and rewards;and policies of quality and cost control. All thesevalues, beliefs, systems, practices, and the orga-nizational imperatives of bureaucratic structuresand power relationships are at odds with the newdemands of cooperation, information-sharing,and joint decision-making inherent in high-performing cross-functional teams.

For a typical functional manager, the very exis-tence of cross-functional teams implies compro-mises with existing organizational arrangements.Personal and organizational imperatives associ-ated with the status quo naturally conflict withcross-functional teams. Compounding this is thestress experienced by the team and the individu-als within it.

The following serves as a summary of strategiesand tactics that organizations can use to supporthigh-performing cross-functional teams.Organizations should:l encourage executives to be champions of the

team concept—Executives are models of orga-nizational values in their own behavior and inhow they recognize and reward employee prac-tices. How well executives consistentlyexpress team-friendly values through theirbehavior can greatly influence team success.

l ensure management-team alignment of pur-pose and expectations—This objective can beachieved by the appropriate selection of the

team project and through negotiation with theteam on its team charter.

l change functional managers from controllers tosuppliers—Too frequently the functional man-ager acts as the controller of resources.Today’s business challenges require the inte-gration of diverse knowledge and expertiseand the cooperation of everyone with the req-uisite elements of knowledge. Cross-functionalteam success requires that the functionalmanager surrender authority for resource allo-cation to the team. The functional manager’srole requires clarification and a shift to that ofenabler and supplier of services.

l provide appropriate external resources and sup-port for the team—Cross-functional team proj-ects usually require external resources, suchas training, process facilitation, and legal,computer, and information services. It is criti-cally important that senior management pro-vide the organizational resources and supportrequired for an innovative team to functioneffectively. The team leader needs to tell man-agement at the onset of the development pro-gram what resources, help, and support areneeded. The leader’s relationship with seniormanagement should be carefully cultivated viainvolvement, planning, and regular communica-tions as it critically affects the project leader’scredibility, visibility, and priority.

l allow time away from regular duties—Assuringtime away from regular duties for team meet-ings and assignments is a key resource issue.Depending on the scope of the projects, totalteamwork may require 100 to 200 hours ofwork over a three-to-twelve month period.Given the hectic pace of most work environ-ments, this time must be built into the sched-ules of team members and their functionaldepartments. These adjustments must besupported and encouraged by management.

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l clear roadblocks to team success—Whenteams address products and processes withhigh potential and high visibility, they invariablyencounter political issues, differences of man-agement opinion, and questions of responsibil-ity. These issues require the advice and advo-cacy of the executive champion whose role isto clear any roadblocks to team success.

l invest resources in training, employee develop-ment, and team facilitation—Initially all teammembers should be trained in the new way ofworking. This commonality of training andexperience will provide team members with ashared team language. Ideally, basic aspectsof team training should be extended to allmanagers and executives. For example, teammembers may benefit from training in interper-sonal skills.

l implement team recommendations—Executives must be prepared to act on teamrecommendations or to justify their actionswhen team recommendations are modified orrejected. Failure to do so will undermine futureteam efforts. Each team project must bebrought to a satisfactory conclusion. Resultsmust be implemented, or at least tested. If theresults are not implemented, there should beevidence of substantive organizational learningfor future application.

l reinforce team (not team member) accountabil-ity—Allow the team to perform. The organiza-tion must grant the team sufficient authority tofulfill its assigned mission. For example, afterreceiving broad direction from executive man-agement, teams should set their own targets.Organizations must permit the team to man-age risk, to control its budget, to evaluate itsperformance, and to recognize and celebrateits individual members’ and the overall team’sperformance. Making teams accountable forproject control, spending, and team resultshelps team members focus on their joint

effort. It generates personal commitment tothe team and its common purpose. This strat-egy also prevents, or at least reduces, externalpressures that may distract the team.

l reward collaboration and cooperation, not com-petition—Many forms and types of team recog-nition are available, such as a team presenta-tion to executive management, an appreciationdinner, recognition in performance appraisals,reporting team results in corporate publica-tions, and personal acknowledgment fromexecutives.

l suspend normal individual performancereviews—A corollary to team accountability issuspending individual performance reviews.Individual reviews may work against teameffectiveness. In interdependent tasks, suchas teamwork, it is difficult to establish individ-ual contributions. If they are required, the teamis probably the best judge of individual contri-butions. Individual performance reviews for tra-ditional functional or line responsibilitiesshould be suspended for people who areassigned to a cross-functional team. Suchreviews distract members from the team effortand reinforce existing organizational structuresand relationships.

Evaluating Team PerformanceTeam performance should be evaluated on a reg-ular basis with the focus more on results andless on specific activities, to promote creativesolutions and avoid group tunnel vision. Teamsuccess can be evaluated against the following:l fitting with team vision;l fulfilling team’s mission;l achieving results;l upholding team values; andl meeting expectations.

The best judge of team effectiveness is the teamitself. Self-evaluation can be brought onto the

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informal agenda of every meeting by simply ask-ing, “How are we doing?” The team leader canperiodically place the issue on the formal agen-da. The review should consider both the taskside and process side of team effectiveness. The“Cross-Functional Team Rating Form,” inAppendix A, provides a possible structure for rat-ing team performance on the process side.

X . WHY CROSS-FUNCTIONALTEAMS CAN FA ILCross-functional teams can fail for many rea-sons. Among them are:l Failure to establish clear project objectives:

3 poor goal or issue definition at project kick-off;

3 not defining goals and roles of functionaldepartments; and

3 underestimating project complexity;

l Failure to control costs, schedules, andresources:3 not anticipating issues that can derail proj-

ects; and3 not monitoring project process;

l Ineffective communication networks betweenthe team and the external world:3 not establishing, using, and updating com-

munication networks;3 not maintaining the interest and commit-

ment of senior management; and3 failure to share important “earnings”;

l Lack of coordination within the team:3 not clearly defining team member roles and

responsibilities;3 not integrating the efforts of individual con-

tributors; and3 not anticipating team problems and develop-

ing contingency plans;

l Failure to deal with intense pressures and conflicts:3 underestimating task difficulty;3 not allowing for a learning curve to develop

within the team; and3 pressure for immediate results;

l Failure to deal with problems and issues:3 not knowing that serious problems exist;3 not admitting that problems exist; and3 not seeking expert help in solving major

problems;

l Failure to develop a feedback system:3 not providing feedback to team members;3 lack of senior management feedback and

control; and3 not using the experience of other teams that

have faced similar experiences;

l Inadequately trained team leaders and teammembers:3 lack of training in team development skills;

and3 inadequate team leadership and team mem-

bership skills;

l Other issues:3 underestimating project completion time;3 not providing adequate resources;3 senior management’s failure to support and

empower the team;3 not assessing the team’s strengths and

weaknesses;3 lack of planning and control; and3 not investing enough time in high-payoff

activities, such as status review meetings.

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XI . CONCLUSIONToday’s business challenges require the integra-tion of diverse knowledge and expertise and thecooperation of everyone with the requisite under-standing and capabilities. As integrative mechan-isms, cross-functional teams are a primary man-agement tool of the 1990s and will be more crit-ical in the next century. Cross-functional teamsintegrate the distributed expertise required bycomplex undertakings.

However, teams are not the solution to everyorganization’s organizational needs. They will notsolve every problem, enhance every firm’sresults, nor help top management address everyperformance challenge. Moreover, when misap-plied, they can be both wasteful and disruptive.Nonetheless, cross-functional teams usually dooutperform other groups and individuals.

This guideline presents advice and best prac-tices for getting more from cross-functionalteams for the individual team member and theorganization. Without diligent implementation,however, the best practices are merely bestintentions.

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APPENDIX A : CROSS-FUNCTIONAL TEAM RAT ING FORM5

Think how your team would rate on a scale of 1-5(1 = low; 5 = high)

Criteria RatingPurpose1. Members describe and are committed to a common purpose. ______2. Goals are clear, challenging, and relevant to the team’s purpose. ______3. Strategies for achieving goals are clear. ______4. Individual roles and responsibilities are clear. ______

Sub-total (out of potential of 20) ______

Empowerment5. Members feel a personal and collective sense of power. ______6. Members have access to necessary skills and resources. ______7. Organizational policies and practices support team objectives. ______8. Mutual respect and willingness to help each other is evident. ______


Relationships and Communication9. Members express themselves openly and honestly. ______10. Warmth, understanding, and acceptance are expressed. ______11. Members listen actively to each other. ______12. Differences of opinion and perspective are valued. ______


Flexibility13. Members perform different roles and functions as needed. ______14. Members share responsibility for team leadership and team development. ______15. Members are adaptable to changing demands and requirements. ______16. Various ideas and approaches are explored. ______


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5 Source: Adapted from Kenneth Blanchard. Donald Carew, and Eunice Parisi-Carew, 1990, 22-23.

Criteria RatingOptimal Productivity and Accountability17. There is individual and mutual accountability. ______18. There are collective work-products. ______19. Team measures performance by assessing its collective work-products. ______20. Team discusses, decides, and does real work together. ______21. Team output is high. ______22. Quality is excellent. ______23. Decision-making is effective. ______24. Clear problem-solving process is apparent. ______


Recognition and Appreciation25. Individual contributions are recognized and appreciated by leader and other members.______26. Team accomplishments are valued and recognized by the organization. ______27. Group members feel respected. ______28. Team contributions are valued and recognized by the organization. ______


Morale29. Individuals feel good about their membership on the team. ______30. Individuals are confident and motivated. ______31. Members have a sense of pride and satisfaction about their work. ______32. There is a strong sense of cohesion and team spirit. ______


General AssessmentGrand Total (out of potential of 160) ______

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Henke, J.W., A.R. Krachenberg, and T.F. Lyons.1993. “Cross-functional teams: Good con-cept, poor implementation!” Journal ofProductivity Innovation Management.10:216-229.

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Zenger, John H., Ed Musselwhite, KathleenHurson, and Craig Perrin. 1994. LeadingTeams: Mastering the New Roles.Homewood, IL: Business One Irwin.

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