In the fast-paced world of modern business, organizations are constantly seeking ways to innovate more efficiently. One promising strategy? Building empowered, cross-functional teams that can tackle complex problems through design sprints and carry the torch through implementation. But while the benefits of such teams are clear—faster problem-solving, greater accountability, and more innovative outcomes—adopting them within many organizations remains a significant challenge. In this article, we’ll explore the seven most common barriers to building these teams and set the stage for a deeper dive into each in upcoming articles.
🚧 1. Siloed Structures
Many organizations are still organized in rigid, siloed structures. Departments are designed to specialize and focus on specific functions, creating isolated pockets of knowledge and expertise. While this might work for routine operations, it’s a recipe for disaster when the goal is innovative cross-functional collaboration. Additionally, hierarchical decision-making further entrenches these silos by centralizing power at the top, leaving teams with little autonomy to innovate on their own.
Simon Sinek emphasizes that assigning responsibility, not just tasks, can help break down these silos. When team members are trusted with real accountability, they naturally reach out to others, fostering collaboration rather than isolation【59†source】.
A McKinsey study found that organizations with cross-functional collaboration are 1.9 times more likely to deliver above-average financial performance, yet 70% of cross-functional initiatives fail due to siloed structures and lack of collaboration.
🤔 2. Cultural Resistance
Empowering teams often means shifting from a top-down management approach to one of shared leadership. This can feel threatening to leaders who are used to having control. Change aversion and a lack of trust between departments can also undermine cross-functional efforts. As Brené Brown aptly puts it, "Clear is kind. Unclear is unkind"—but when leaders are vague about empowering teams, it only fuels resistance.
According to a survey by Deloitte, 45% of executives identified cultural barriers as a major obstacle to collaboration. Building a culture of trust and openness is critical to breaking down these barriers. Leaders must create environments where open communication and vulnerability are valued rather than feared.
🧩 3. Misaligned Incentives
If your organization’s KPIs emphasize individual or departmental success rather than collaborative results, cross-functional teams are set up to fail from the start. Budget ownership often exacerbates this problem, as departments guard their resources, fostering competition rather than cooperation. Addressing these incentive misalignments is critical to unlocking true cross-functional collaboration.
As Adam Grant suggests, shifting from individual metrics to team-based success measures can cultivate a sense of collective ownership and shared goals, reducing competition and fostering collaboration.
A Harvard Business Review article found that 65% of companies struggle with aligning team incentives, leading to fragmented efforts and suboptimal outcomes.
🛠️ 4. Skills and Mindsets
Cross-functional teams need members who can bridge technical and business domains, yet many companies don’t prioritize cross-skilling. Moreover, shifting from a task-focused to a problem-solving mindset requires a significant cultural change. This challenge is not just about technical know-how—it’s about fostering a mindset open to learning and collaboration.
According to Simon Sinek, the most effective teams are those where members not only take responsibility for their tasks but also actively support each other’s growth. Building a mindset of shared responsibility can transform isolated efforts into collaborative problem-solving.
A recent LinkedIn Workplace Learning Report revealed that 57% of executives believe upskilling is essential to future-proofing their workforce, yet only 29% have implemented formal cross-skilling programs.
📊 5. Lack of Social and Leadership Support
While technology can certainly pose challenges, the more significant barrier often lies in the lack of social, organizational, or leadership support. Cross-functional teams thrive on psychological safety, where members feel safe to take risks, share ideas, and make mistakes without fear of retribution. However, many organizations struggle to cultivate this environment.
Adam Grant emphasizes that leaders play a pivotal role in creating psychological safety: 'Psychological safety doesn’t just bubble up naturally—leaders have to create it. And it often takes more effort than we realize'. Without leaders actively fostering this sense of safety, teams may hesitate to innovate or collaborate effectively.
Additionally, many companies do not invest enough in training leaders and team members on how to support and empower each other. According to a study by Deloitte, 45% of executives identified a lack of leadership support as a major obstacle to fostering a collaborative culture. Investing in leadership training and creating regular touchpoints for open communication can help build the trust and safety needed for cross-functional success.
💼 6. Leadership Gaps
One of the most significant challenges in building empowered cross-functional teams is the lack of consistent and effective leadership support. Leaders may express their desire to empower teams but often fall short when it comes to modeling collaborative behavior or providing the necessary resources.
According to research from Gallup, only 22% of employees strongly agree that their leaders foster collaboration effectively. One common leadership gap is the inability to create a unified vision that cross-functional teams can rally behind. When leaders fail to align the organization's goals with team objectives, it leads to confusion and fragmented efforts.
Another leadership gap is the reluctance to relinquish control. As Adam Grant points out, leaders often struggle with shifting from a directive approach to one of guidance and support. Effective leaders should act as facilitators, removing obstacles rather than micromanaging tasks.
Finally, leaders often lack the skills to foster a culture of continuous learning and experimentation. Without demonstrating a commitment to personal growth and encouraging risk-taking, they inadvertently stifle innovation within cross-functional teams.
Leaders who actively model collaboration, support team autonomy, and champion collective problem-solving are more likely to see cross-functional initiatives succeed. Training leaders to embrace these practices is essential for sustainable team empowerment.
💡 7. Risk Aversion
Many large organizations favor predictability and fear failure, making them hesitant to embrace the experimental nature of empowered teams. This risk aversion often stems from compliance and regulation concerns, particularly in highly regulated industries where the fear of a lack of oversight looms large.
Simon Sinek argues that innovation requires a willingness to take risks and accept failures as part of the process. By creating a culture where calculated risk-taking is valued, leaders can enable teams to innovate without fear.
A PwC survey found that 55% of executives cited risk aversion as a key barrier to innovation, highlighting the need to balance risk management with creative problem-solving.
Final Thoughts
Transitioning to empowered, cross-functional teams is no small feat, but the potential for innovation and resilience makes it worth the effort. Stay tuned as we unpack each of these barriers in dedicated articles, offering practical strategies and real-world examples on how to overcome them.
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