Have you ever wondered why some teams work better than others?
The answer lies in the way they collaborate across functions. In today's complex remote world, collaboration is key to success. But it's not just about working together; it's about working together effectively.
In this blog post, we will explore how cross-functional collaboration can drive success for accounting firms of all sizes. We'll discuss the benefits of collaboration, common challenges, and practical tips for implementing effective cross-functional collaboration. Whether you're a small business owner or a corporate executive, you'll come away with a better understanding of how to harness the power of cross-functional collaboration to take your business to the next level.
What is Cross-Functional Collaboration?
Cross-functional collaboration is when people from different teams within the accounting firm work together to get things done. It's like when your audit team and your tax specialists team up to help a client with their finances. By working together, the firm can use everyone's unique skills and knowledge to achieve better results for the client.
This is really important in accounting firms because it helps to work more efficiently and provide better service to clients. Cross-functional collaboration helps break down walls between teams and encourages everyone to work towards a common goal.
A New Era Of Cross-Collaboration
Nothing has changed teamwork like 2020-2021 did. Thousands of employees learning new skills, helping each other to manage new communications technics, and adapting fats to unexpected clients' requirements. Bringing unprecedented challenges, these past few years emphasized how necessary it is to strategize collaboration across your firm in order to drive steady growth and foster a culture of trust and transparency.
We all know that siloed work is sometimes inevitable, but making it your company’s culture can have negative effects. When companies work in a ‘heads down at all times’ atmosphere, especially in today’s remote work era, employees can feel alienated, and disconnected from what others are doing.
Why You Should Aim For Effective Cross-Functional Collaboration?
1. Better decision-making: Two heads think better than one. When employees from different departments work together, they can bring a variety of perspectives and expertise to the table, leading to better decisions. Collaboration can help identify and solve problems more quickly, leading to better outcomes for clients and the firm.
2. More efficient processes: Cross-functional collaboration is like bringing together a bunch of superheroes with different powers to work together towards a common goal. By working together, they can eliminate any redundancies in their work, which means they won't have to do the same thing twice.
3. Flexible team structure: When different teams work in silos, they might not be aware of what the other team is doing, which can lead to confusion or misunderstandings. But when employees work across different functions and teams, they gain a broader understanding of the company's operations. This means that they may be able to try out different positions. By having employees who are knowledgeable about multiple areas of the business, the company can be more agile and respond more quickly to changing circumstances.
How To Support Cross-Functional Teams?
Let's explore the key characteristics of a high-performing cross-functional team. The more of this you encourage, the most effective your team is going to be:
Lon-term collaboration
Temporary collaboration teams can pose a challenge to cross-functional collaboration. When team members know that the project is temporary, they may not see the value in changing their processes or ways of working, with the expectation of returning to business as usual once the project is complete. However, the true benefits of cross-functional collaboration can be realized when teams are formed permanently in a diverse way or when cross-functional collaboration is accepted as a strategic management approach.
Challenging but realistic goals
Another critical factor for team success is ensuring that project objectives present a moderate performance challenge. Objectives that are too easy can lead to disengagement and boredom, while objectives that are too difficult can lead to frustration and disconnection. The key is finding the right balance between challenge and attainability to keep team members engaged and motivated.
Positive work culture
Working in a climate of pressure, fear, or boredom can be challenging and can negatively impact team effectiveness. High-performing cross-functional teams understand the importance of creating a supportive and collaborative atmosphere that values open communication, respect, and a sense of purpose.
Empowerment
Encouraging autonomy and giving team members the freedom to make decisions that align with their skills and expertise can help build a sense of ownership and accountability, resulting in higher performance and better outcomes.
Exemplary leadership
A successful team requires a leader who can effectively balance structure and flexibility. The leader should set clear task boundaries, but also give team members the freedom to make decisions about how to achieve the goals within those boundaries. This autonomy allows team members to utilize their unique skills and perspectives to approach tasks in a way that works best for them.
Excellent communication
No matter the size of your business, one of the most vital components of successful cross-functional teams is effective communication. When team members communicate with a high level of trust, honesty, and respect for one another, it fosters an environment of open dialogue and encourages the sharing of ideas and feedback.
How Effective Is Your Accounting Firm's Cross-Functional Collaboration?
In short, cross-functional collaboration is a crucial element of success for any organization, especially for accounting firms that need to optimize their resources to drive growth. By addressing the common challenges and implementing these effective practices, accounting firms can leverage the benefits of cross-functional collaboration to improve decision-making, increase efficiency, and enhance outcomes.
Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References:
Cross-functional collaboration: what it is and how to improve it. (2021, October 7). Knowledge Hub. https://pumble.com/learn/collaboration/cross-functional-collaboration/
Ross Donovan (2018, December 01). Secrets for Successful Cross-Functional Collaboration https://sfmagazine.com/articles/2018/december/secrets-for-successful-cross-functional-collaboration/
How finance teams can become better cross-functional partners in 2022. (n.d.). How Finance Teams Can Become Better Cross-functional Partners in 2022. https://ramp.com/blog/partnering-with-finance-teams-in-2022
