Investing in boundary-spanning collaboration to drive efficiency and innovation

Abstract

In most global organizations, performance heavily dependson employees’ ability to collaborate across various kinds ofboundaries: vertical, horizontal, stakeholder, and geo-graphic. The increased technical complexity of productsand services demands knowledge far beyond what a singleperson oroftenevenasingleteampossesses.Cross-boundarynetworks let groups throughout an organization achieveeconomies of scale through the transfer of best practices.These networks also enable the combination of diverseknowledge and experience, which can yield break-throughinnovations. Yet thesetwo strategic benefits ofcollaboration— efficiency gains and innovation — cannot be achievedthrough ablanketapproachtoincreasingconnectivityamongemployees. Each requires its own intervention. Leaders who notunderstand that most likely will realize a goodreturn on their investments in collaboration.Executives clearly recognize the crucial role of boundary-spanning networks in the exchange of ideas and best prac-tices. InarecentsurveyconductedbytheCenterforCreativeLeadership (CCL), 86percent ofsenior executives saidthat itwas ‘‘very important’’ for them to work across boundaries.Yet just 7 percent said they were ‘‘very effective’’ at doingso. Only 53 percent agreed that their peer group was effec-tive in this area. This percentage dropped to 19 percent formiddle managers and 8 percent for entry-level managers.Thus the employees who could provide the broadest perfor-mance benefittotheorganization—thoseclosesttothework— struggled the most with this kind of collaboration.One problem lies with performance-management andincentive systems (and other formal structures) that donot encourage employees to help colleagues in other units.Another is a lack of technology and HR (human resources)practices (e.g., rotation programs or on-boarding practices)that