Cross-departmental work: The success factor for finance teams

What does cross-departmental work mean?

Cross-departmental work means breaking down silos and having employees from different departments work together on goals and projects. This collaboration requires not only open communication but also a clear division of responsibilities, roles and expectations from the outset. In practice, this means, for example, that finance does not analyze figures in isolation, but works closely with sales, IT or product development to make data-driven decisions and develop solutions together. In this way, finance becomes a partner for the entire company and actively contributes to value creation.

Definition of cross-functional work: Cross-functional work refers to the close collaboration of employees and teams from different departments of a company to achieve common goals. It is based on the exchange of knowledge, skills and perspectives, promotes the integration of departments and supports the development of holistic solutions.

Benefits of cross-functional finance teams

Modern finance teams are no longer just responsible for accounting and controlling. They are increasingly acting as intermediaries between operational and strategic corporate goals. But why is cross-departmental work so crucial? The key lies in combining financial knowledge with the expertise of other departments. And the best thing is: we actually have everything we need to do this. What is meant are modern tools that promote communication and collaboration between departments.

According to a study by McKinsey & Company, close collaboration between finance and other departments can improve the quality and speed of decision-making. This synergy is particularly important in times of economic uncertainty, when flexibility and the ability to adapt quickly are required. 

The right tools are needed to promote collaboration

Tools such as interactive dashboards are becoming increasingly important. They not only enable up-to-the-minute data processing, but also create transparency and understanding between departments. The days of Excel spreadsheets that only the finance department understands are a thing of the past. In a world where decisions have to be made quickly, a modern dashboard can bridge the gap between finance and other departments. Technological solutions are therefore needed to enable interdisciplinary collaboration.

However, there are still some obstacles to be overcome before the full potential of these tools can be realized. A study by Horváth shows that a significant proportion of finance managers (59%) complain about a pronounced silo mentality in various departments, which makes cross-departmental collaboration more difficult. In addition, 40% of respondents report difficulties in recruiting suitable specialists with the necessary skills.

Demands on modern CFOs

The role of CFOs has also changed dramatically in recent years. It is no longer enough to deliver numbers. CFOs must simultaneously be leaders, strategic advisors, and operational managers. But this diversity of demands also presents challenges. It is often difficult for CFOs to find enough time for strategic tasks because day-to-day business keeps them fully occupied. 

So, CFOs need to set clear priorities to achieve their goals. The Deloitte CFO Agenda 2024 identifies six key issues for CFOs that are critical in a dynamic business environment:

1. Increase value: CFOs are challenged to go beyond traditional financial metrics and consider investments in areas such as climate protection and diversity that may not yield immediate financial returns. 

2. Managing people and fostering corporate culture: Attracting and developing employees with the right skills is essential. Particular attention is paid to the adaptability of personnel in order to meet changing requirements. 

3. Driving artificial intelligence and digital transformation: Implementing AI requires addressing issues such as talent development, governance and risk management in order to exploit the full potential of these technologies. 

4. Strengthen operational efficiency and resilience: By working with procurement and security departments, efficient supply chains should be ensured and cyber risks effectively managed. Topics such as digitization and IT are increasingly the responsibility of finance teams. 

5. Integrate sustainability and climate protection: CFOs must align sustainable practices with the company's growth objectives to ensure long-term success. 

6. Optimize corporate security and risk management: Investments in analytical tools are necessary to understand external factors and assess their potential impact on the organization. 

These topics are closely related and require CFOs to take a holistic approach to meet the diverse challenges and make strategic decisions effectively.

Attracting young people: Why finance needs to become “cooler”

A statement we hear again and again: “Finance needs to become cooler and more attractive!” It couldn't be put better. Because if we're honest, Excel spreadsheets that scroll to infinity inspire neither the business departments nor the Gen Z graduates. And that's exactly the point. 

If finance continues to be perceived as a dusty back room, it will be difficult to attract the best people – and even more difficult to get the rest of the organization on board. This means we need more exchange, more understanding and – yes – more clear tools. Interactive dashboards that provide clarity at a click, instead of an IBM AS400 interface that half of your employees wonder if they've been beamed back to 1995. 

A PwC survey of GenZ employees shows that the majority of young professionals value a modern work environment and innovative technologies. By introducing new tools and promoting cross-departmental collaboration, companies can not only work more efficiently, but also create a more attractive work environment.

Conclusion: Cross-departmental work as the key to success

Cross-departmental work is more than just a trend. It is a decisive success factor that determines the future viability of companies. Organizations that have understood this not only benefit from more efficient processes, but also create a corporate culture that promotes collaboration and innovation. The key to success lies in the right combination: state-of-the-art tools, clear communication and the will to break down silos.