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Systemic Innovation

Despecialization: Building Your Cross-functional Excellence

by Vadim Kotelnikov, Founder, 1000ventures.com

You Need Cross-functional Excellence for:

Cross-Functional Technology Managers

  • are skilled technologists

  • value the contribution from other functions

  • play an active role integrating these functions during the innovation process

Why You Need Cross-functional Excellence?

Although innovation is driven by technology, required competence extends beyond technical know-how. In the new knowledge economy and knowledge-based enterprises, systemic innovative solutions arise from complex interactions between many individuals, organizations and environmental factors. The boundaries between products and services fade rapidly too. If you wish to be a market leader today, you must be able to integrate in a balanced way different types of know-how that would transform stand-alone technologies, products and services into a seamless, value-rich solution.

Cross-functional Excellence for Leading Organizations

We all start our carriers as specialists - men and women with narrow corridors of functional expertise. The goal of specialists is to optimize individual effort. Technologists want to design the best products. Salespeople want to develop the most effective marketing strategies... and on and on. But "to raise to the ranks of senior management, you must forgo this quest for personal perfection, seeking instead to balance the skills and capabilities of the specialists working for you1". You need to apply the balanced business systems approach and consider your business as system of interrelated factors of strategy, owners, investors, management, workers, finance, processes, products, suppliers, customers, and competitors.

Strategic Cross-functional Management

Strategic cross-functional management is central to capitalizing on functional excellence, and in order for functional specialists to make the greatest possible contribution, they must take a broader view of their functions and understand how they fit into the web of the organizational processes and, ultimately, into the overall strategy... More

Cross-functional Excellence for Driving Radical Innovation

"Here is the paradox: You need a great team of people with diverse skills to perform a symphony well, but no team has ever written a great symphony!3".

While cross-functional team are key players in defining and implementing incremental innovation projects, cross-functional disruptive individuals tend to be key players in defining radical innovation projects. Individuals who are likely to excel in a radical innovation project, besides having superior technical capabilities, should be goal-oriented, broadly educated, creative, extremely bright, not afraid to be different, integrative, flexible, passionate, entrepreneurial, aggressive, eager to learn business, able to take risks, and inquisitive3.

Cross-functional Excellence for Managing Technology

In the new era of systemic innovation, cross-functional technology managers are in high demand. In the Silicon Valley, for instance, many companies found that when they moved to a flatter organization, they had plenty of top-flight technologists but too few technology managers. "These managers are skilled technologists who also value the contribution from other functions, and who play an active role integrating these functions during the innovation process2".

Cross-functional Excellence for Managing Knowledge

The explosion of knowledge growth, combined with its rapid distribution, makes it difficult to stay on top of the available knowledge in any industry. Thus, a global knowledge economy rewards not only creators of new knowledge but also those who can identify and integrate knowledge effectively2.

Case in Point: Nurturing Cross-Functional Experts at Hewlett-Packard

Most companies tend to recruit, train and promote people within functional corridors. But Hewlett-Packard (HP) breaks the walls, creating a carrier network that begins with the recruitment of diverse people in terms of their skills and personality and then promotes horizontally, as well as vertically throughout the company. "Typically, HP employees move through four to six functional areas in the course of their carriers. This creates broad knowledge of the company and fosters the kind of teamwork other companies covet1". When it comes time to promote, managers don't look who is next down the carrier line, they look for the best people. Neither employees should follow a pre-defined path to a particular post, nor need they to get a bigger title to be given new responsibility.

Bibliography:

  1. "Extreme Management", Mark Stevens, 2001

  2. "Relentless Growth", Christopher Meyer, 1998

  3. "Radical Innovation", Harvard Business School, 2000

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