From the cross-functional team to the x-team, to the hybrid x-team

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A manager’s most valuable skill is the ability to foster great teamwork—but creating the conditions for teams to thrive has never been more difficult. The rapid pace of change demands teams that are not just productive but also incredibly creative, flexible and agile. The shift to remote and hybrid work has only added to this challenge, making productive collaboration and cross-functional team building even harder.

But what if we could reinvent teamwork for this new reality? What if we could break down traditional organisational silos and tap into the collective intelligence of internal and external stakeholders? What if we could harness the power of technology to create truly connected, innovative and high-performing teams?

Here, we’ll examine these questions, offering managers insights into how to build and support productive and engaged teams. Expanding on the cross-functional team concept, we’ll explore the continuing relevance of “x-teams” and examine the factors that drive their success. We’ll also investigate the ongoing metamorphosis of the x-team in the context of remote work, analysing how to mitigate the impact of reduced in-person interaction on both culture and team innovation. 

Finally, we’ll recognise that supporting employees means more than just facilitating collaboration in these uncertain times. It means addressing anxieties and providing the reassurance and individualised support that employees crave. Going forward, these attributes will be the hallmark of outstanding leadership—and the agile, innovative teams they nurture.

What are cross-functional teams?

The term “cross-functional” is often used in corporate circles, yet pinpointing the exact origin of the cross-functional team concept is difficult. The Total Quality Management movement and the rise of matrix management structures likely influenced their development. At the same time, Glenn M. Parker, a recognised expert in the field, has significantly contributed to our understanding of the cross-functional team through his book “Cross-Functional Teams: Working with Allies, Enemies, and Other Strangers.”

A cross-functional team is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations and human resources departments. Typically, it includes employees from all levels of an organisation. A cross-functional team can often help organisations carry out complex tasks that require a lot of input and expertise.

Apple’s development of the first iPhone, through its “Project Purple” team, is a prime example of a cross-functional team in action. This team combined the expertise of hardware, software, and design engineers, who collaborated closely to overcome challenges and deliver a groundbreaking product. The iPhone’s success highlights the power of the cross-functional team in fostering innovation and achieving ambitious goals.

Yet, in the face of rapid change and uncertainty, traditional, internally focused teams often struggle to keep pace. While the cross-functional team concept gained prominence in the 1980s and 1990s, a new type of team emerged in the early 2000s: the “x-team,” a concept pioneered by Deborah Ancona and Henrik Bresman.

When a cross-functional team crosses organisational lines

X-teams are specifically designed to be externally focused, agile and adaptable. As such, the concept is enduringly relevant; they break down organisational silos and engage directly with external stakeholders such as customers, partners, and even competitors. This external orientation allows x-teams to gather diverse perspectives, identify emerging trends, and adapt quickly to market shifts. 

X-teams excel at three core external activities:

• Sensemaking: Actively engaging with the external environment to understand customer needs, competitive threats, and emerging trends.
• Ambassadorship: Building relationships with key stakeholders outside the organisation to gain buy-in, secure resources, and foster collaboration.
• Task coordination: Coordinating activities with external partners and stakeholders to ensure alignment and efficient execution of tasks.

By embracing these activities, x-teams can drive innovation, improve responsiveness and enhance organisational learning. For instance, Ancona and Bresman, identified the Spin-In team at Takeda Pharmaceutical as a compelling example of an x-team’s success. This particular team was tasked with finding the best use for a drug that didn’t fit into the company’s existing therapeutic areas. 

The team engaged in extensive sensemaking by visiting biotech companies and startups to learn about their practices and conducting competitive analyses to understand the market landscape. They also practised ambassadorship by reaching out to senior leaders within Takeda to secure resources and buy-in and by creating an informal board of external stakeholders for advice and support.

The team employed agile decision-making processes and a flexible structure, bringing in part-time and part-cycle members as needed. They experimented with new approaches, such as partnering with a nursing organisation to bring clinical trials directly to patients, significantly speeding up the drug development process. 

Ultimately, the Spin-In team successfully identified a new application for the drug, generating data that piqued the interest of another R&D group within Takeda. They effectively transferred their expertise and enthusiasm to this new group, ensuring the continued development of the drug.

This example demonstrates how an x-team, by embracing external collaboration, agility and flexibility, can successfully navigate complex challenges, drive innovation and achieve organisational goals. However, adopting the x-team approach requires a shift in mindset and, subsequently, is often met with resistance. Let’s examine why in more detail and outline how these challenges can be overcome.

Overcoming barriers to x-team adoption

Despite its clear value, managers often encounter obstacles when adopting the x-team strategy. Many hold onto outdated assumptions about teams, whether it be consciously or unconsciously. For example, the notion that teams should have fixed memberships is a common barrier to effective x-team implementation. X-teams are fluid and dynamic, with a strong external orientation. This can lead to confusion about who to include, how to manage diverse expertise, and how to change membership. 

Additionally, traditional team management techniques may not be suitable for x-teams. In conventional team settings, managers often take a more directive approach, setting clear goals, assigning tasks and closely monitoring progress. There may be more effective approaches for x-teams, which require a higher degree of self-management, external engagement and coordination across organisational boundaries. For example, an x-team leader tasked with developing a new product in collaboration with an external partner will need to allow team members to make decisions independently rather than micromanaging their every move.

Despite these challenges, several strategies exist for successful x-team implementation. Starting small by practising x-team skills on a smaller scale can help build confidence and familiarity. Prioritising external exploration and sensemaking before setting internal goals and roles is also crucial. Managers must embrace the fluidity of x-teams, recognising that their membership and focus will evolve over time. 

Dividing x-team work into distinct phases and adjusting team composition and leadership as needed can help manage this dynamic process. Finally—and this cannot be stressed enough—encouraging leadership at all levels and empowering team members to take ownership and contribute to decision-making can foster a sense of shared responsibility and drive success.

The remote worker as a new breed of external stakeholder

Despite its enduring relevance, there are some things Ancona and Bresman simply couldn’t have foreseen two decades ago when they proposed the concept. The unprecedented changes in the world of work, accelerated by the pandemic and the rise of AI, have led to a distributed workforce that challenges traditional notions of teamwork and company culture beyond that of the x-team manifesto. 

Indeed, the ongoing debate on how to build an innovative team in the remote work era applies to x-teams as much as any other team structure. A strong culture facilitates smooth interaction among individuals and groups while also distinguishing people’s organisation-specific identities and behaviours. Less time in the office means fewer opportunities for serendipitous encounters vital for team innovation. With a decrease in social capital, intellectual capital development suffers. 

Despite this critical challenge, x-teams can leverage remote workers to enhance innovation, agility, and organisational learning. In the context of x-teams, remote workers can be viewed as a new type of external stakeholder, and, as we have already seen, external stakeholders are not an obstacle to the x-team but an asset. Remote workers often bring diverse backgrounds and experiences, enriching the team’s perspectives and problem-solving capabilities. They can enhance the team’s agility and responsiveness by operating across different time zones and geographies. 

Incorporating remote workers effectively requires a shift in mindset and a new set of strategies. X-teams create an inclusive environment where remote workers feel valued and connected to the team’s mission and goals. Equally, by leveraging technology, X-teams can bridge geographical distances and maintain regular contact with remote workers. This includes digital tools to facilitate seamless knowledge sharing and collaboration among remote and in-person team members. 

By building trust with remote team members by establishing clear expectations, providing regular feedback, and encouraging open communication, x-teams with remote elements can thrive. The result is a next-generation hybrid x-team, where no limit is placed on the value of external insight.

Final reflections on the current context

The rise of the “hybrid x-team,” with its fluid structures and remote elements, is indeed the result of a period of unprecedented uncertainty. The COVID-19 pandemic, economic volatility and geopolitical instability have left many employees feeling anxious and vulnerable, and we, as leaders, have no control over whether such events happen again. This is where strong leadership becomes crucial; although embracing new team structures is vital to success, it also requires a shift in leadership style. 

An article by behavioural science experts Kristine Powers and Jessica B.B. Diaz highlights the need for managers to go beyond traditional strategies and provide individualised support that addresses the specific anxieties of their team members. Powers and Diaz found that in times of crisis, employees crave reassurance and open communication. Managers who can acknowledge challenges while offering hope and stability are more likely to maintain trust and engagement. 

This is particularly important for hybrid teams, where members may feel disconnected due to their diverse backgrounds and remote work arrangements. For x-teams to function effectively in this environment, managers need to foster psychological safety. This means creating a space where team members feel comfortable expressing their concerns and vulnerabilities without fear of judgment. It also means providing personalised support, recognising that each member has unique needs. Some may require flexibility in their work schedule, while others may benefit from more frequent check-ins and reassurance.

By adapting their leadership style to meet these needs, managers can create a more resilient and adaptable x-team. In essence, supportive leadership becomes the glue that holds the team together in the face of uncertainty, allowing them to leverage their diverse perspectives and external connections to navigate the crisis and achieve their goals.

Embracing the x-team advantage in the new world of work

The modern workplace demands a new approach to teamwork that embraces external collaboration, agility and adaptability. X-teams, with their ability to break down organisational silos and engage with external stakeholders, are uniquely positioned to navigate the complexities of this dynamic environment.

As we’ve explored, successful x-team implementation requires a shift in mindset, moving away from traditional assumptions about team structure and leadership. Managers must embrace fluidity, encourage external engagement, and foster psychological safety to empower x-teams to thrive. Integrating remote workers as key external stakeholders adds another layer of complexity, requiring the strategic use of technology and a focus on inclusivity and trust-building. In this era of unprecedented uncertainty, supportive leadership is more critical than ever. By providing individualised support, open communication, and a sense of stability, managers can help x-teams navigate challenges and achieve their objectives. The x-team model, with its inherent flexibility and external focus, is not just a response to the crisis but a blueprint for the future of work. As organisations continue to adapt to the changing landscape, embracing the principles of x-team collaboration will be crucial for driving innovation and sustainable success.