Cross-Functional Dynamics in New Product Development

OVERVIEW:Managing human interactions and the transfer of technology and ideas among individuals and functional groups can be the most challenging aspect of new product development. Interaction, information sharing and cross-fertilization of ideas among people from R&D, production, marketing, and other functional groups is essential. However, problems arise when people with dissimilar orientations, experiences and interests are called upon to interact, make decisions, and participate in a co-creative endeavor like new product development. A closer examination of the human interaction processes that characterize new product development shows that effective leadership as well as followership, equitable distribution of power and a concern for building collaboration among participants can make human interactions more productive, facilitating the progress of ideas across the organization.