TVP – Metric 18 Use of Cross-Functional Teams

Background | User Guide | Program Contents | Stakeholders | List of Metrics

1. Metric Definition

Either the quantity (number or value) of projects being run via cross-functional teams, or the cross-functional nature of the teams according to a subjective scale.

a. Number of Cross-functional Teams

Its is generally accepted that the  use of cross-functional teams will improve the effectiveness and efficiency of the Innovation process and that the cross functional teams ability to address all functional issues will improve speed to market and the overall success rate of projects.. By tracking the number or percentage of such teams and rating the cross functional nature of the team it is possible to reinforce this approach and the associated behaviors.

b. Evaluation of the use of Cross-functional Teams

An organization can assess  its usage and effectiveness of  using cross-functional teams by using a subjective scale ranging from one to four and maintaining a count of the projects utilizing cross functional teams. Firms operating at level one are characterized by the existence of strong organizational boundaries, lack of cross-functional involvement in innovation projects, and no cross-functional team structure. Firms operating at level four are characterized by a well developed and supported team structure which effectively places all innovation work in cross-functional teams responsible for the entire project rather than functional silos responsible for parts. Through these measures, the company can assess the integration of all functions into the innovation process, which should lead to better delivery against objectives for the projects as well as better conformance to timelines. This metric can also indicate to the management team how well the functional teams are integrated into the innovation process.

2. Advantages and Limitations

This metric is useful if the use of cross-functional teams contributes to the effectiveness of the innovation projects within the company.  Use of this metric assumes that cross-functional teams are a key indicator of project success for the company.

3. How to use the Metric

By understanding the percentage of projects being supported with cross functional teams and rating the cross-functional nature, it is possible to understand how well integrated the company is in its innovation process.  This metric can then be tracked over time, which should lead to an increase in programs utilizing cross-functional teams.

4. Options and Variations

This metric can be related to the overall project success to indicate the importance of cross functional teams to the successful delivery of projects.  This is accomplished by rating each project regarding its success and then comparing this to the cross functional rating of the team.

5. Champions and Contacts

6. References