How To Encourage Cross-Functional Collaboration in Your Business

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Teamwork and collaboration are important factors of business success to ensure employees are working towards the same goals and are not inadvertently hindering each other. While employees in the same department often instinctively work together to meet their common objectives and tasks, those in different departments may not be as readily collaborative.

It may be for simple reasons such as being located on different floors of the office building or more complicated reasons such as not having the same operational priorities. Cross-functional collaboration aims to remove those boundaries but encouraging these employees to work together is not always easy.

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What is cross-functional collaboration?

When employees from different departments work together on the same project or goal, it is described as cross-functional collaboration.

For example, a representative from each of the accounts, sales, procurement and HR departments may form the team charged with devising a new product. Or, they may be brought together to identify how to meet a business objective, such as going carbon neutral.

Each employee brings their unique insight and experience to developing the new product or achieving the goal – the accounts employee can bring knowledge of financial ramifications, the sales worker can discuss customer demands or potential saleability issues, the procurement staff member can raise any issues regarding parts supply, and the HR representative can provide insight into whether new staff need to be sourced to create the product or meet the goal.

This team may solely be brought together to brainstorm ideas for the business owner or executive to decide upon, or it may be involved in the direct implementation of the product or goal.

The cross-functional team may be made up of employees from entry-level operators to senior managers to ensure insights at all levels are provided.

While one senior staff member may still head up the group and lead its work, the objective is for all parties to be represented equally in discussions.

However, not all departments need to be involved to achieve cross-functional collaboration – just two different areas may be required.

Why is cross-functional collaboration beneficial?

Traditionally, departments have worked in isolation and are brought into business operations only when required.

It can be an effective way of managing workload, as teams are assigned tasks as needed and their priorities are clear.

However, by involving at least one representative from different departments in the business process in the early stages of a project, it can be a more efficient way of working.

It can enable departments to better plan their future workload and resource needs, as well as identify issues to overcome that those from another department cannot foresee.

Bringing together employees with different backgrounds can also spark innovation, promoting new ways of working and considering ideas and issues that those in other departments may never have considered or believe to be important.

Collaborating cross-functionally also can have general benefits for workplace culture. When workers from different departments get to know each other, it can lead to a friendlier, more pleasant work environment.

Employees also can better respect other’s input to business operations when they better understand their day-to-day activities and unique pressures.

How to encourage cross-functional collaboration

There are specific ways in which business leaders can encourage cross-functional collaboration in the short and long term.

Simple tips to foster collaboration in the short term

For every new initiative that the business undertakes, the working party should be made up of at least one representative from each department who is invited to the meetings. They can then decide if they can contribute or need to be involved now, or should be brought back in at a later stage.

Everyone should have the opportunity to speak during these meetings or be called on to provide their thoughts at some time during the meeting. Dedicating time to each employee and listing it on the meeting agenda is a simple way to accomplish this.

Using common software programs across departments can help overcome logistical issues, such as ensuring all employees log into the same video conferencing program for team meetings, while project management software can ensure tasks and developments are accessible to all team members.

Small-to-medium sized businesses may find they already are collaborating cross-functionally because of the small number of staff employed. However, there is always opportunity for improvement.

Holding a weekly meeting in which all staff outline their current projects and priorities can be a simple way in which employees learn about each other’s roles and provide an opportunity for them to offer support, if desired.

Long-term ideas to foster collaboration

From a broad perspective, increasing inclusivity in the workplace can foster cross-functional collaboration organically.

For example, instead of holding separate departmental awards and recognition events, hold one event for those in all departments to attend. Employees will get to know each other, at least by face and name or at a social level, and understand different roles in the organisation.

It may pay to consider locating different departments on the same floor of the office, if possible. It can be harder to exclude employees, inadvertently or otherwise, when a meeting is occurring within a few metres of their work station. Likewise, it is easy to realise someone may have a valuable contribution to the discussion and invite them into it if they are spotted sitting at a work station near the meeting room.

In these days of remote work arrangements, ensuring that there are certain days when all people are working in the office also can foster cross-functional collaboration, especially in terms of facilitating casual in-office chats such as around the coffee machine.

Secondments also are a way to encourage cross-functional collaboration in the long term. For example, an employee may be loaned to another department to help boost staffing levels during a peak period, during which time they learn about its priorities and pressures as well as key aspects of that role.

They return to their own department with new skills, perspectives and contacts within the business.

Problems that can arise and how to overcome them

The difficulty in enabling cross-functional collaboration often lies in departments having competing demands. For example, the marketing officer may have a fabulous idea to spread the message about the new product but it comes at a cost that the finance officer cannot work into the quarterly budget.

It can cause angst between the two if one perspective is regularly prioritised over the other or if employees are unwilling to negotiate.

It can help to obtain the buy-in of team leaders to positively spruik these collaborations or help address internal employee grumblings.

Another problem may be that employees who are more senior in rank feel they are better experienced or knowledgeable in areas and want their contribution to weigh more heavily than junior members of the cross-functional team – or disregard or knock their ideas altogether.

This is where having a team leader who is on board with the concept can be beneficial, as they will ensure that everyone’s contribution is of equal value.

Cross-functional collaboration can also fall victim to the different workload peaks of departments during the year. For example, finance-related employees will be busy at the end of the financial year, while employees in sales roles may find it hard to be available to meet at the end of the calendar year.

Working groups may need to be flexible to cater to the workloads of other parties and work harder to find mutually agreeable times to meet. They perhaps may allow some members to skip the odd meeting, or allow them to send another representative in their place.

The key to achieving cross-functional collaboration is persistence. If at first cross-functional collaboration does not succeed, keep trying, by ensuring each time that all parties are aware that this is a key mission and value of the business.

Invite other departmental representatives if those initially selected turn out to not be suited to the process, and communicate achievements made by collaborating cross-functionally to the wider business.

Practice makes perfect. Over time, everyone will instinctively work together and help tackle each other’s problems, blurring the lines between departments and creating one cohesive team.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.