What are the biggest challenges leaders face managing transformations across cross-functional teams?

In today’s rapidly evolving business landscape, managing transformations across cross-functional teams has become a critical challenge for leaders. With 83% of companies now leveraging cross-functional teams to maintain agility and competitiveness, the ability to navigate these complex collaborations is more crucial than ever. However, research shows that nearly 75% of cross-functional teams are dysfunctional, highlighting the significant hurdles leaders face in this arena.

To shed light on these challenges, we’ve invited Antonio Nieto-Rodriguez, a world-renowned expert in project management and strategy implementation, to share his insights. As the creator of concepts like the Hierarchy of Purpose and the Project Manifesto, Antonio brings a wealth of experience in advising senior leaders on transformational change and cross-functional collaboration.

Let’s explore the biggest challenges leaders encounter when managing transformations across cross-functional teams, and gain valuable perspectives from Antonio on how to overcome them.

Antonio Nieto-Rodriguez

Antonio Nieto-Rodriguez, a world-renowned expert in project management and strategy implementation, addresses the question: What are the biggest challenges leaders face managing transformations across cross-functional teams? According to Nieto-Rodriguez, “The biggest challenges that leaders face when managing transformation across functional teams are related to the silos, the organizational structure.”The primary obstacle stems from traditional organizational structures that prioritize business units and operational efficiency over cross-functional collaboration. This siloed approach often leads to conflicting incentives and objectives that hinder successful transformations. Nieto-Rodriguez emphasizes that “when silos, when departments have priority, when the incentives, the objectives are still driven by the organizational structure, this is what makes a big challenge for transformation to be successful.”To overcome these challenges, Nieto-Rodriguez advises leaders to focus on strategic transformations rather than attempting to change the entire organization at once. He recommends:

1. Assembling a fully dedicated team for the transformation
2. Empowering the team with clear, transversal objectives
3. Extracting team members from their day-to-day responsibilities
4. Adjusting incentives to align with transformation goals

By implementing these strategies, leaders can accelerate transformations and increase their chances of success. Nieto-Rodriguez concludes, “Try to adjust that. Try to have a fully dedicated team, try to empower the team, try to have objectives for their team transversely, extract the people from their day-to-day and put them in the transformation. That will certainly accelerate the transformation and make it more successful.”As we explore this critical topic further, additional expert perspectives will provide valuable insights into managing cross-functional transformations effectively.