CROSS-FUNCTIONAL TEAMS AS A KEY TO SUCCESSFUL PRODUCT MANAGEMENT

ABSTRACT

The study emphasizes the importance of cross-functional teams (CFC) in product management, demonstrating how the integration of interdisciplinary knowledge and skills facilitates the development of innovative solutions and effective responses to dynamic market demands. Drawing on research data from MIT SMR and Deloitte, the paper examines the contribution of different functional units to the product development process and illustrates how collaboration accelerates decision-making and enhances the agility of startups. In addition to theoretical conclusions, practical examples from successful companies are presented, confirming the effectiveness of cross-functional collaboration in achieving business goals.

АННОТАЦИЯ

Исследование подчеркивает значимость кросс-функциональных команд (КФК) в управлении продуктом, демонстрируя, как интеграция междисциплинарных знаний и навыков способствует разработке инновационных решений и эффективному реагированию на динамичные рыночные требования. Основываясь на данных исследований MIT SMR и Deloitte, статья рассматривает вклад различных функциональных подразделений в процесс создания продукта и иллюстрирует, как коллаборация ускоряет принятие решений и повышает адаптивность стартапов. Помимо теоретических выводов, представлены практические примеры из успешных компаний, подтверждающие эффективность межфункционального взаимодействия в достижении бизнес-целей.

Ключевые слова: кросс-функциональные команды, продуктовое управление, управление, команды, сотрудники.

Keywords: cross-functional teams, product management, management, teams, collaborators.

Introduction

Effective product development in today's business environment involves integrating the efforts of professionals with unique competencies from different functional areas of the enterprise. Leading cross-functional product team management professionals have deep knowledge in the fields of engineering and design, regularly collaborating with experts from these fields.

Figure 1. Cross-functional projects [10]

However, effective product team leadership goes beyond technical and design collaboration, requiring a broad strategic vision and integration of ideas from areas as diverse as marketing, quality assurance, manufacturing processes, supply chain management, and data analytics.

The importance of cross-functional teams in modern organizations cannot be underestimated as they play a key role in providing strategic direction for product development, enabling companies to effectively respond to market demands and ensure timely product releases [7].

Thus the purpose of the study is to examine the impact of cross-functional teams on successful product management in today's business environment.

1. Literature Review

A study conducted by MIT SMR and Deloitte, in which more than 3,500 managers were surveyed, confirms that organizations that are most advanced in digitalization, i.e., those that effectively integrate digital technologies and capabilities to streamline procedures, attract highly skilled talent across the enterprise, and implement innovative value-generating business models, are significantly more likely to resort to cross-functional collaboration. This conclusion was reached in a study published in April 2019 by MIT Sloan.

Cross-functional teams are proving to be effective for different types of businesses and can include employees from any part of the organization coming together to achieve a common task. Here are the key benefits that such a cross-functional team implies

Also, for most individuals, the act of collaboration and establishing true partnerships are not instinctive acts, emphasizes Rick Lepsinger, managing partner of consulting firm OnPoint Consulting. Consequently, CIOs will have to improve these skills both personally and within their management teams and departments. Lepsinger argues that simply calling for collaboration is not enough: leaders must demonstrate examples of this behavior and demand it from their subordinates, thereby building a culture of collaboration and support at all levels of the organization. He adds that it is also important to develop influencing, conflict management, and communication skills.

Additional expert opinions point to the need to foster collaboration through diversifying teams and facilitating communication using team collaboration tools. Cynthia Stoddard, who serves as senior vice president and CIO at Adobe, emphasizes the importance of teaching team members to trust each other and build interpersonal relationships, which is considered critical to effective collaboration and yielding control.

Defining common goals, experts say, is necessary to strengthen cross-functional teams, because having a common goal ensures alignment of effort and minimizes potential conflicts. An example is the work of Merabi of NYU Langone Health, who emphasizes the importance of clearly articulating shared ambitions and goals for teams, as well as establishing common criteria for measuring success.

In addition, assigning individual roles and responsibilities, as well as holding individuals accountable for assigned tasks, is critical to the effectiveness of cross-functional teams. Lepsinger emphasizes the need to provide clear guidelines for organizing collaboration and defining authority to prevent conflict and build trust within the team based on shared goals.

Providing interdisciplinary oversight is another key aspect for the success of cross-functional teams, as Abel, CIO at Veritas, points out. He emphasizes the creation of steering committees that reflect the cross-functional nature of teams and promote alignment and the provision of necessary resources [5].

2. Materials and methods

Cross-functional product teams are based on the principle that the product development process should not be limited to the sequential transfer of tasks between separate isolated groups, instead favoring a structure where active interaction between all participants contributing to the development and success of the product is the norm.

Figure 2. A cross-functional team [1]

Regarding the role of scrum teams in the context of cross-functionality, a more promising question may be whether an effective scrum team can exist outside the cross-functional format. Based on the scrum methodology, which assumes rapid development cycles with continuous integration of feedback for continuous innovative improvement in meeting customer needs and business goals, having competencies covering all key aspects of the product and core business functions within the team becomes indispensable [6].

Figure 3. Roles within a scrum team [9]

3. Advantages and disadvantages of having a cross-functional team

In today's business environment, where cross-functional teams (CFTs) have established themselves as an integral element in a multitude of industries, experts highlight the potential benefits and limitations that companies may face.

As an advantage, this collaborative methodology attracts many benefits and appears integral for startups looking to remain competitive in a dynamic business atmosphere. By bringing together diverse perspectives and expertise, cross-functional teams initiate the formation of innovative concepts that would be unattainable for single individuals or isolated departments. The interaction of participants from diversified areas of expertise enables teams to exploit collective intelligence, thereby facilitating accelerated decision-making and effective problem-solving.

The presence of such teams facilitates adaptation to changing market realities. With a broad palette of skills and perspectives, teams can immediately generate original solutions to counter challenges, which is especially relevant for startups whose operations are located in volatile markets that require quick and efficient responses.

Additionally, cross-functional teams foster collaboration between departments, which is an indispensable attribute for the success of any startup. Interactions between employees from different departments can form deep interpersonal bonds and increase mutual understanding of functional roles and tasks, thus ensuring unity of effort towards a common mission and understanding of everyone's contribution to the overall success of the enterprise [3,8].

However, one important disadvantage is the possible inhibition of the professional development of IFC participants due to the limited range of tasks within a certain area of activity. In response to this challenge, some enterprises resort to periodic team renewal to avoid monotony and to stimulate learning related to the diversity of business processes and customer base. Moving employees between teams is a way to overcome stagnation and ensure that the team's innovative capacity is constantly refreshed.

Assigning IFCs to projects of excessive scope, which are doomed to failure due to their global nature, can also be a problem. The lack of focus required for the successful implementation of an IFC project can hinder the effective use of cross-functional teams in the future. In addition, the lack of clear deadlines and milestones can reduce the team's motivation to complete the project, leading to project stagnation and ultimate failure.

The introduction of a new reward system when working with IFC may meet resistance. Replacing individual incentives with team rewards is sometimes resented by employees, despite the potential for increased revenue. There is a perception of a lack of control over the company's financial results and, as a result, over their financial prospects. Also, some employees may perceive the switch to team rewards as a reduction in the value of individual achievements in favor of team efforts, which is perceived as an increase in demands without appropriate compensation [2,4].

4. Examples of successful cross-functional teams

Let's consider some bright examples of cross-functional teams' effectiveness based on the practices of leading corporations.

1. The iPhone development team at Apple. This team was a symbiosis of specialists from different fields: engineering, design, marketing, and other disciplines. Joint activities led to the creation of the iPhone - a product that was able to revolutionize the market through the introduction of advanced technologies and design solutions.

2. Amazon's "two-pizza" team. Amazon took an original approach to forming cross-functional teams by limiting their size to as many people as could be fed two pizzas. This facilitated better communication and quick decision-making within the teams.

3. Cross-functional teams at Cisco. Cisco actively utilizes cross-functional teams to solve complex problems. An example is the team responsible for designing and implementing cloud computing solutions, specifically for Amazon Web Services (AWS).

These examples demonstrate how cross-functional teams can catalyze innovation, improve productivity, and solve complex problems [3].

Conclusion

Thus the success of a start-up enterprise depends on its ability to integrate innovation, generate value, and meet the needs of its customer base. Realizing these ambitions requires a comprehensively organized team of specialists able to collectively develop effective strategies and products. In this context, interdisciplinary teams play a key role in achieving success as they bring together diverse perspectives, expertise, and competencies to create innovative solutions.

An interdisciplinary team consists of representatives from different sectors of the organization with unique roles, functions, and responsibilities. This structure allows the enterprise to mobilize the expertise of different departments to develop innovative solutions. Each member of such a team contributes unique insight into the enterprise's goals and objectives, helping to identify potential risks and opportunities.

Having interdisciplinary teams provides startups with a range of advantages. First and foremost, they provide access to the latest technology trends, allowing enterprises to ideate and create innovative products that meet consumer demands through collective creative exploration. Further, such teams allow for efficient allocation of organizational resources, thereby increasing the efficiency of product development.

In addition, interdisciplinary teams can keep startups competitive in dynamically changing markets. By utilizing a variety of perspectives, startups can quickly identify risks and form strategies that best meet the needs of their customer base. This is especially valuable when introducing new products or services, as it enables them to adapt to market changes and respond to customer feedback quickly.

Finally, interdisciplinary teams facilitate cross-divisional collaboration, which can greatly improve decision-making and increase overall productivity. Departmental collaboration increases the likelihood of sharing information and resources, which can give a business an advantage over competitors. Such collaboration also encourages innovation, as colleagues can come up with creative solutions based on their unique competencies.

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