Cross‐Functional Teams: Good Concept, Poor Implementation!

Since the late 1970s there has been a substantial increase in the use of teams in the product development process. However, even as more manufacturing firms are initiating the use of teams, their value is being questioned by firms that have used teams for years. Based on interviews in dozens of U.S. firms, John Henke, Richard Krachenberg, and Thomas Lyons suggest that most firms are not using teams as effectively and efficiently as they could and should be. In an attempt to overcome this shortcoming, the article discusses the system's characteristics and organizational implications of the multifunctional product development team, including the benefits linked to the use of teams; the current state of team design, and where improvements can be made; and team–people issues, including communications, decision‐making processes, and leadership styles. Specific suggestions on what must be done to improve team effectiveness are also discussed. Finally and most importantly, the article discusses what firms are doing, often inadvertently, to discourage the future use of teams and how these activities can be overcome to maintain the continued viability of teams over the long run.