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Making collaboration across functions a reality

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Summary

This article examines how two companies have successfully addressed the challenge of breaking down silos and boosting cross-functional collaboration. One company focused narrowly to improve a single process, while the other launched a broad-based transformation. This included setting stretch targets to unify different teams, creating cross-functional teams to control the process end-to-end, and redesigning their value chain and processes. They also invested in leadership capabilities rooted in transparency and regular feedback to accelerate cultural change. These changes have had a tangible impact on performance, morale, and ways of working.

Q&As

How can companies break down silos and boost cross-functional collaboration?
Companies can break down silos and boost cross-functional collaboration by imposing stretch targets from the center, empowering cross-functional teams, standardizing processes, and tightening up execution.

What are the common principles for improving performance between functions?
The common principles for improving performance between functions are imposing stretch targets from the center, empowering cross-functional teams, standardizing processes, and tightening up execution.

What was the approach taken by a communications-services company to address its customer satisfaction issues?
The approach taken by the communications-services company to address its customer satisfaction issues was to set several breakthrough targets aimed at uniting different teams and pushing them beyond their usual work practices and patterns. They also established new cross-functional teams charged with controlling the installation process from initial order to after-sales service, assigned a strong manager to coordinate the process end to end, and set stretch goals that no individual function or business could meet on its own.

How did a global industrial company reduce its internal complexity?
The global industrial company reduced its internal complexity by identifying a few hundred combinations of global businesses and local markets, setting stretch goals that no individual function or business could meet on its own, creating a group of transformation leaders to fight cultural resistance and help connect teams end to end, and having team leaders simplify processes by defining seven value chains that created and delivered value to customers in truly distinctive ways.

What measures did the company use to ensure successful collaboration between teams and prevent cultural resistance?
The company used measures such as monthly reviews by top executives to tag lagging business-market combinations, investing in leadership capabilities rooted in transparency and regular feedback, assigning senior managers to own simplified process repositories, and establishing end-to-end performance targets and accountability measures tied to them to ensure successful collaboration between teams and prevent cultural resistance.

AI Comments

👍 This article presents a comprehensive and insightful analysis of how to improve collaboration and efficiency across functions in companies, and provides interesting examples of how two businesses have successfully done so.

👎 This article is very long and provides very little practical advice on how to actually implement these changes in businesses.

AI Discussion

Me: It's about how companies have struggled for a long time to break down silos and boost cross-functional collaboration. It talks about how important it is for companies to focus narrowly on processes that cross functions and create new performance targets that will force teams out of their comfort zones. It also discusses how important it is to standardize processes and roles to reduce complexity and enable collaboration between different business units.

Friend: That's really interesting. What are the implications of this article?

Me: The implications are that companies need to focus on breaking down silos and boosting cross-functional collaboration in order to stay competitive in today's market. Companies should create specific performance targets that will force teams out of their comfort zones and standardize processes and roles in order to reduce complexity and facilitate collaboration between different business units. This will help to increase customer satisfaction, reduce costs, and improve overall performance.

Action items

Develop a cross-functional team to review and assess current processes and identify areas for improvement.
Establish stretch targets that require collaboration across functions and business units.
Implement a system of accountability and performance metrics to ensure that teams are working together effectively.

Technical terms

Silos: A silo is a structure or system that isolates a particular process or group of processes from the rest of the organization.
Stretch Targets: Stretch targets are goals that are set higher than what is expected to be achieved. They are designed to push people to go beyond their comfort zone and achieve more than what is expected.
Cross-Functional Teams: Cross-functional teams are teams that are composed of members from different departments or functions within an organization. These teams are formed to work together to achieve a common goal.
Business-Process Reengineering: Business-process reengineering is the process of redesigning and streamlining business processes to improve efficiency and effectiveness.
Key Performance Indicators (KPIs): Key performance indicators (KPIs) are metrics used to measure the performance of an organization or individual against predetermined goals.
End-to-End View: An end-to-end view is a holistic approach to understanding a process or system from start to finish. It involves looking at the entire process from beginning to end, including all the steps and activities involved.
Value Chain: A value chain is a set of activities that a company performs to create value for its customers. It includes activities such as product design, production, marketing, and distribution.
Platform-Based Product Design: Platform-based product design is a process of designing products that are based on a common platform or architecture. This allows for the reuse of components and the development of multiple products from a single platform.
Standardization: Standardization is the process of creating and implementing standards for products, services, or processes. It is used to ensure consistency and quality in the production of goods and services.