Successfully building and leading cross-functional teams

A cross-functional team operates largely independently of external decision-makers and therefore works faster than interconnected departments.

By Isolde Van der Knaap
0 min reading
January 13, 2026
February 25, 2026
Successfully building and leading cross-functional teams

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Cross-functional teams: The most important facts in brief

  • Cross-functional teams combine multiple skills to be able to work on a result area completely and independently.
  • You make decisions directly within the team, which improves speed and quality.
  • A cross-functional team is worthwhile if there is a clearly defined area of responsibility, sufficient work volume, and genuine decision-making authority.
  • Advantages arise primarily from shorter decision-making processes, greater accountability, and better coordination between specialist perspectives.
  • Difficulties arise when roles, responsibilities, or decision-making processes are unclear, or when individual specialized roles become bottlenecks.

What is a cross-functional team?

Cross-functional teams are groups in which many areas of expertise are combined in such a way that they can jointly take responsibility for a clearly defined goal ("end-to-end"). To do this, the team needs all the essential skills to plan, implement, test, and deliver without external dependencies.

  • Pooling of expertise: The team covers all the skills necessary to achieve the objectives.
  • Shared responsibility: Success and quality are the responsibility of the entire team, not individual functional areas.
  • Few dependencies: Transfers to other departments are eliminated or greatly minimized.
  • Focus on outcomes: The team works on a defined set of outcomes with measurable benefits, rather than on isolated tasks.

Difference between cross-functional and functional

Classically functionally organized teams include people with the same expertise in one department, such as development, marketing, or design. In this model, working on a product or project requires multiple handovers between units. Decisions take longer because each department has its own priorities, processes, and responsibilities.

Cross-functional teams break down this structure. They combine the relevant roles so that a result area can be handled entirely within the team. This eliminates the need for a lot of coordination across departmental boundaries. Decisions are made where the expertise is available.

When is it worthwhile to set up a cross-functional team?

Setting up or deploying a cross-functional team is worthwhile for your company if an area is so clearly defined that the team can handle it from start to finish on its own.

This always works very reliably when there is enough work in this area and, as a rule, no decisions by external bodies are necessary. Under these conditions, a cross-functional team works faster, requires less coordination, and takes responsibility for results.

Good conditions for a cross-functional team:

  • The result can be described very precisely. Examples: a product module, a complete ordering process, or addressing a target customer group.
  • The objective remains stable. There is a robust framework for decision-making and planning.
  • There is a constant flow of work in this area. The team remains continuously busy.
  • All core competencies can be brought into the team. Depending on the area, these include, for example, development, UX, data analysis, or marketing.
  • The team can prioritize independently. Decisions do not have to be constantly sought from managers or committees.
  • Dependencies on other teams are manageable. The team can carry out most steps itself.

These prerequisites immediately reveal the advantages of a cross-functional team:

  • The team does not waste time on handovers or waiting for decisions.
  • It can map the entire process internally.
  • The work and deadlines can be planned very accurately.
  • The team's working methods bring them very close to the customer, enabling them to understand and serve them better.

What difficulties frequently arise in cross-functional teams?

Cross-functional teams solve many internal coordination problems, but they also bring their own difficulties. Most of these arise when roles, decision-making processes, or responsibilities are not (yet) well defined. If this is the case, the team may lose momentum and encounter recurring conflicts.

  • Unclear responsibilities: If it is not clearly defined who makes decisions within the team or which role is responsible for which area, delays and conflicting expectations arise.
  • Conflicts between different professional perspectives: Different disciplines sometimes pursue different goals and apply different evaluation standards. This can lead to discussions about priorities and approaches.
  • Specialists become bottlenecks: Individual specialists, for example in data, infrastructure, or legal matters, quickly become the point where tasks pile up.
  • Different working methods within the team sometimes lead to additional work and misunderstandings.

How do I build a high-performing, cross-functional team?

When setting up a cross-functional team, you should describe the goal or outcome of the working group in great detail, assemble the necessary members based on their roles and skills, and then define responsibilities, decision-making processes, and workflows.

Step 1: Define the result/goal

The objective forms the basis of the team and determines which tasks and decisions are its responsibility.

  • Very precise formulation of the area of responsibility, for example, "Creation and optimization of the checkout process."
  • Clear demarcation from other teams to prevent overlap
  • Set measurable goals that provide guidance for planning and prioritization.

Step 2: Define roles and responsibilities

A cross-functional team must cover all the skills required to work independently on the objective.

  • Determination of core roles, such as product management, development, UX, data analysis, or marketing
  • Assignment of responsibilities per role so that responsibilities are clear
  • Determining how roles with a relatively small project share and time requirement can be integrated.

Step 3: Clarify responsibilities and decision-making processes

  • Determining which decisions the team makes itself and which are made externally
  • Disclosed framework for prioritization and goal setting
  • Binding formulation of quality standards and acceptance criteria

Step 4: Agree on working methods and processes

  • Common workflow such as Kanban or Scrum with defined steps, agile working
  • Regular coordination meetings such as planning, review, and retrospective
  • Uniform documentation standards to ensure that information remains accessible in the long term

Step 5: Manage participants and contributors

A cross-functional team needs agreements on how it will work with other departments.

  • Overview of all contributors and their requirements
  • Established process for how tasks are assigned to the team, for example via intake forms or a prioritization meeting.
  • Agreed format for status reports and expectation management

How do I lead a cross-functional team?

As the leader of a cross-functional team, ensure that you provide your team with a workflow in which, as far as possible, all decisions can be made quickly and efficiently. 

At the outset, binding ground rules should be established to structure the daily work routine. These include:

  • Coordination channels for technical and organizational issues
  • Expectations regarding documentation and communication
  • Dealing with conflicts and differences in decision-making
  • Rules regarding periods of concentrated work and availability

It is then your job to ensure positive cooperation and create a working atmosphere that leverages the strengths of a cross-functional team:

  • Address contradictions immediately, argue professionally and objectively, and do not postpone decisions.
  • Check in regularly, but briefly. Use boards that show the status of the work.
  • Define how you handle synchronous and asynchronous communication and how quickly feedback can be expected.
  • Give each team member decision-making authority and discuss decisions in reviews.

How can I provide suitable spaces for multiple cross-functional teams?

As an employer, you are faced with the task of providing suitable working conditions for several cross-functional teams without having to permanently reserve separate spaces for each team.

Since many employees in marketing, development, product, or consulting regularly work remotely, traditional, permanently assigned team rooms are hardly economical anymore. Actual utilization would be low, while costs would be high.

A suitable approach is to switch to desk sharing and bookable team zones. This involves using workstations, rooms, and team areas via a booking system instead of assigning them permanently. Your teams reserve areas exactly when they want to work together in person, for example for planning, reviews, workshops, or coordinating results.

The advantages of bookable team zones, rooms, and individual workstations: 

  • Lower vacancy rates: Fixed desks often remain unused in hybrid working models. Bookable workspaces avoid these idle times.
  • Even as you grow, there is no need to rent new office space, as your teams can easily share the existing facilities.
  • Your teams can select spaces that suit the task at hand, for example, for focused individual work, group discussions, workshops, or hybrid meetings.
  • Using the booking software, your teams can ensure that the required zones and rooms are available as soon as they start working on site.
  • Rooms and zones can be quickly adapted to different team sizes and tasks, which was not possible with previously defined areas.

PULT is your booking software for desks, rooms, and zones. With PULT, give your cross-functional teams the security and freedom to book suitable spaces at any time.

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FAQ

Have questions?

Does every cross-functional team need a dedicated space?

No, a permanently assigned space is not necessary if suitable areas and rooms can be booked as needed. It is important that the team has reliable access to suitable spaces when collaborative work on site is required.

Are cross-functional teams automatically faster?

At the beginning, additional coordination is required until roles and processes are established. After that, throughput times are usually significantly reduced because handovers are no longer necessary and decisions are made within the team.

How large should a cross-functional team be?

Typically, there are five to nine people, depending on the area of responsibility and the skills required. The team should be small enough for direct coordination and large enough to cover all areas of expertise.

What is the difference between interdisciplinary and cross-functional?

Interdisciplinary describes the collaboration of different disciplines without pooling responsibility for results within the team. Cross-functional means that a team is jointly responsible for a clearly defined result.

What happens when specialized knowledge is rarely needed?

Experts can then be brought in to provide appropriate support. This allows the team to remain operational without having to permanently fill any specialist roles.

About author

Isolde Van der Knaap

Hybrid Work Enthusiast and Account Executive

LinkedIn

At PULT we're designing the future of the hybrid workplace for companies and their employees. Focused on SME and mid market customers in Eruope, I'm working on everything from Customer Discovery to Onboarding. I'm very passionate about new work and moved to Hamburg in 2024 even though I'm originally from France.

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Office Insights

The Paperless Office: A step-by-step guide from piles of paper to a digital workflow

The paperless office describes an ideal state in which documents, approvals, and internal processes are handled without a parallel analog system. However, many attempts at digitization result in duplicate records, a situation that can be avoided.

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The Paperless Office: The Basics

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A paperless office can only be achieved when processes and documents are transformed together. However, parallel structures undermine both the concept and the benefits.

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For legally compliant archiving in accordance with GoBD, retention periods of 6 and 10 years apply. Digitally archived documents must be stored in a manner that ensures they are complete, unalterable, and can be reconstructed at any time for audit purposes.

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Implementing a paperless office: Assess the current situation, prioritize appropriate processes, select software, involve the team, and evaluate the results after 90 days.

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PULT digitizes room reservations, desk bookings, and visitor management in a completely paperless manner and integrates directly with MS Teams, Slack, Personio, and HiBob—as part of a paperless office management system.

What distinguishes a truly paperless office from a digital filing system?

Going paperless starts with ensuring that a process—such as approving a vacation request or processing an incoming invoice—runs from start to finish without any physical documents. If, on the other hand, you simply scan a document and forward the PDF via email, you’ve eliminated the paper, but not the process.

Document vs. Process: What's the Difference?

Document digitization converts a paper document into a file. Process digitization redesigns the workflow behind it: Who submits the request, and where? Who approves it, and how? Where is the result stored in an audit-proof manner and immediately retrievable? Only when both are combined can a paperless office without parallel structures be achieved.

What aspects of office work can be made paperless?

As a general rule, almost all processes that have been handled on paper up to now can be digitized:

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Inbox: digital inbox with automated forwarding.

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Invoice Processing: Digital Incoming Invoices with Accounting Integration.

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Contracts and Documents: DMS with full-text search and access rights.

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HR documents: digital personnel file, electronic time tracking.

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Visitor Management: Digital check-in processes instead of paper lists, as with visitor management using PULT.

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Room and desk reservations: Reservation systems instead of notice boards and in-person reservation arrangements.

Digital booking of rooms and seats in PULT, with automatic check-in and AI-powered meeting room management.

What legal considerations do I need to keep in mind when setting up a paperless office?

The key legal pillars of the paperless office in Germany are the GoBD, document retention periods, and the e-invoicing requirement.

GoBD and Audit-Compliant Archiving

A digitally archived document is considered GoBD-compliant if it meets three principles:

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Completeness: No document may be missing or deleted without verification.

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Immutability: Subsequent changes must be prevented or fully logged.

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Traceability: Every access can be reconstructed by auditors.

Retention periods apply regardless of format: 10 years for accounting documents, balance sheets, and tax-related business correspondence; 6 years for other business correspondence. A GoBD-certified document management system (DMS) then technically implements these requirements.

E-Invoicing and Other Digitalization Requirements

Starting in January 2025, all B2B companies in Germany must be able to receive e-invoices. The requirement to send e-invoices will take effect in 2027 for companies with annual revenue exceeding 800,000 euros, and in 2028 for all companies.

Beforehand, the general processing of invoices should already be fully digitized so that the transition to e-invoicing can then be made with comparable ease.

What software do I need for a paperless office?

Setting up the right software infrastructure for a paperless office means making a decision for each category and finding the best tools for hybrid work for the company. Four categories cover the majority of paper-related processes:

Category Tools (Examples) What is it for?
Document Capture & DMS DocuWare, ELO, M-Files Audit-compliant archiving, full-text search, access rights
Digital Signature Skribble, DocuSign Legally valid signature without a printout
Invoice Processing DATEV, Lexware, Candis Incoming invoices, accounting integration
Office Management PULT Room booking, desk booking, visitor management, and parking management, integrated with Microsoft Teams, Slack, and HR systems

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How do I implement a paperless office step by step?

To move toward a paperless office, first map out the processes taking place in your office, review and streamline the most important ones, select the appropriate software, and then work with your team to implement the now-digital process.

1

Assess the current situation. Document all paper-based processes, including the steps involved: who does what, when, and using what medium?

2

Prioritize processes. Start with the area that offers the greatest time savings. This typically involves incoming invoices or HR processes, as they are time-consuming and prone to errors.

3

Consolidate your tool stack. A few comprehensive platforms are better than a multitude of individual tools, because data interfaces remain the most common source of errors. Choose tools that communicate with each other.

4

Involve the team before rolling out the tool. Employees won't use tools they know nothing about and don't see as benefiting them personally.

5

Evaluate after 90 days. What usage rates have the tools achieved? Where are there still media breaks? What needs to be revised?

How to Keep Your Office Paperless for the Long Term

Your employees will follow the digital processes as long as there is no reason to deviate from them. Therefore, the processes—and especially the software—in the paperless office must offer them everything that was previously possible on paper and even go beyond that.

With PULT, you can manage all aspects of your office operations: room reservations and automated meeting room management, presence detection, office usage analytics, visitor reception, and more:

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Visitor Management

Organizing an Event: Checklist, Permits & Legalities 2026

If you organize an event, you now bear more legal responsibility than you did just a few years ago. New requirements for safety documentation, GDPR obligations regarding participant data, and changes to liability rules mean that event planning has become a task where relying on an outdated checklist can quickly become costly.

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Organizing an Event: The Basics

  • Public events involving a large number of people are subject to a require a permit in Germany: Depending on the state and the type of event, applications must be submitted to the relevant authority at least 12 weeks in advance
  • Since the stricter requirements took effect in 2025/2026, event organizers must actively maintain their safety documentation: In the event of a claim, anyone who cannot provide complete documentation bears the burden of proof, regardless of whether there was any fault
  • The GDPR applies to participant data when organizing an event, and specifically to event photos and video recordings as well: Without explicit consent or a documented exception, substantial fines may be imposed.
  • Event management feature: With PULT, companies can coordinate corporate events, room scheduling, and attendee management all within a single system, directly integrated with Personio, HiBob, MS Teams, and Slack.

What permits do I need before organizing an event?

As soon as you start planning an event in Germany, you’ll encounter a complex web of regulations that vary depending on the state, the type of event, and the number of attendees. The key regulations include the Public Gathering Venues Ordinance, GEMA, and guidelines from the public order office.

  • Your city or town’s Public Order Office: The first point of contact for public events. The Public Order Office generally approves the event and coordinates with other authorities as needed. Private corporate events with a fixed guest list held at an approved venue do not require a separate permit from this office
  • Department of Streets and Green Spaces (also known as the Department of Civil Engineering or the Department of Urban Planning, depending on the city): You can apply here for a special use permit for events on streets, squares, or in parks. The exact name of the agency varies by municipality. The quickest way to find the right contact is to search for “special use permit for events” on your municipality’s city portal. Many municipalities now bundle this application in the Servicekonto Deutschland
  • Business Licensing Office: If you sell food or beverages, you need a temporary permit under the restaurant regulations of the respective state. This is a separate application, independent of the event permit.

Three additional points that often come up too late in the planning process:

  • GEMA: You must register music that includes GEMA-licensed tracks in advance at gema.de, whether performed live or played from a recording. The fees depend on the size of the event and the venue area.
  • Regulation on Public Gathering Places (VStättVO): For events with 200 or more people, the relevant building authority will verify whether the venue is licensed as a public gathering place. Clarify this in advance with the venue’s landlord, because as the organizer, you are jointly liable if the operating permit is missing or has expired
  • Fire Department and Public Health Department: For events featuring stage setups or food service, the Public Order Office often requires a fire safety plan and a hygiene plan. Make sure to get written confirmation that this applies to your event.

For all applications for which your municipality offers an online portal, the following applies: The Servicekonto Deutschland consolidates many of these forms. Start the application process at least 12 weeks before the event.

What has changed for events as a result of new safety regulations and the reversal of the burden of proof?

DGUV 115-002 sets forth safety requirements for event and production technology and applies to all events where technical equipment such as stages, lighting, or sound systems is set up. Starting in 2025/2026, authorities and courts expect event organizers to actively maintain their safety documentation rather than compiling it only upon request.

This means that risk assessments, evacuation plans, protocols for briefing service providers, and participant lists must be fully documented. If you cannot present complete documentation in the event of a claim, the burden of proof falls on you. A structured documentation system in place before the event should therefore be considered a requirement that you must comply with.

How do I comply with the GDPR when organizing an event?

As soon as you register participants, you are processing personal data and therefore need a legal basis under Article 6 of the GDPR. For corporate events, this basis is generally derived from legitimate interest. In this case, the data may not be used for purposes beyond the event and must be deleted after 90 days at the latest. The only exception to the deletion period is tax-related retention requirements.

Things get more complicated when it comes to event photos and video recordings:

  • Portraits and identifiable individuals: Publication is prohibited without express consent, even in the case of seemingly harmless group photos
  • Panoramic photos of large crowds: In such cases, a legitimate interest may apply, provided that individuals are not recognizable.
  • Online events and recordings: If you record events or meetings , you must inform participants in advance and obtain their consent. Starting a recording without prior notice is a violation of the GDPR.

When registering, provide a consent form that explicitly asks for permission to take photos and record videos. The same rules apply to hybrid events—that is, formats in which some participants join remotely—with the addition of recording requirements under data protection law.

Organizing an Event Step by Step: The Checklist

What tools can help with organizing events?

When it comes to organizing your event, three categories of tools cover the most important planning areas: tools for checklists and risk analysis, online portals for submitting official applications, and office management platforms for room scheduling and attendee management.

  • Checklists, AI: Use our event checklist and consult an LLM (Claude, Gemini, ChatGPT, etc.) to research the local and municipal requirements or guidelines specific to your state, as these cannot be summarized in a single, universal list.
  • Online permit portals: The Servicekonto Deutschland and municipal application portals allow users to submit permit applications via browser-based forms. However, availability varies by state.
  • Office management platforms with event features: A direct link between event planning, room management, and attendee management saves you the hassle of back-and-forth coordination.

PULT combines room booking, guest management, and catering into a single platform. You can book rooms, filter by capacity and amenities such as projectors or whiteboards, reserve areas on the interactive office map for your event, and add catering directly during the booking process. 

  • Rooms, catering, parking, and guest workstations—all in one booking.
  • Guests check in at the kiosk, and the host immediately receives a notification in Slack or Microsoft Teams.
  • At the reception desk, guests sign NDAs, photo release forms and receive a visitor badge and privacy notices.
  • In an emergency, PULT generates an Emergency Export of all currently present individuals at the push of a button.
  • The weekly planner shows in advance how many employees will be in the office on the day of the event, so that room planning and space utilization can be coordinated.

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Office Insights

Workforce Analytics: Definition, Key Metrics, and EU-Compliant Implementation by 2026

Workforce analytics refers to the analysis of personnel data to manage headcount, productivity, and workforce planning. HR teams use this method to support personnel decisions with data. Starting in August 2026, the EU AI Regulation will tighten requirements for AI-powered HR analytics and mandate specific structures.

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Workforce Analytics: The Basics

  • Workforce analytics is the quantitative analysis of HR data—such as turnover, absenteeism, headcount, and office utilization—to derive actionable recommendations for workforce planning.
  • Key metrics for workforce planning analytics include turnover rate, time-to-hire, absenteeism rate, office attendance, and team-level productivity metrics.
  • The EU AI Regulation classifies many HR analytics systems as high-risk AI starting in August 2026, imposing obligations regarding disclosure, human oversight, and data protection impact assessments.
  • PULT provides the data foundation for workforce analytics in hybrid teams—including attendance, desk utilization, and room bookings—and thus complements traditional HRIS systems such as Personio or HiBob.

What is workforce analytics, and how does it differ from people analytics?

Workforce Analytics focuses on the quantitative aspects of the workforce. It centers on headcount, productivity, turnover, and workforce structure in medium-term planning. People Analytics takes this a step further and also examines behavior, engagement, and collaboration based on qualitative data. HR Reporting, on the other hand, provides only retrospective reports without a forecasting component.

workforce analytics

In day-to-day work, these two areas are closely intertwined. When you implement your own workforce analytics, you create the data foundation for people analytics and the overarching workplace management.

Which metrics are suitable for workforce analytics?

Workforce Analytics uses metrics such as turnover rate, time-to-hire, absenteeism rate, office utilization, headcount trends, and others, which are regularly collected and analyzed. Together, these metrics provide an overview of how the workforce is evolving and which areas of the company are over- or under-staffed.

What tools are suitable for workforce analytics?

Workforce analytics tools can be divided into three layers. An HRIS layer as the data core (Personio, HiBob, Workday), an analytics layer for evaluation (Visier, Tableau, supplementary HRIS modules), and an office layer for attendance and space data in hybrid setups. The right combination depends on company size, data architecture, and EU compliance status.

When making your selection, consider the following five points:

  • Hosting region: EU hosting with a data center in Germany or elsewhere in Europe.
  • API Capability: Interfaces with HRIS, time tracking, and office management systems to eliminate data silos
  • EU AI Act Status: The provider documents whether and how its tool falls under the category of high-risk AI
  • Level of detail: Customizable KPIs and freely configurable dashboards
  • Office database: Attendance data, room and workstation reservations as well as visitor management
Tip: PULT Workplace Analytics includes this office layer and feeds attendance data, desk utilization, and room bookings into your workforce analytics pipeline, which can be combined with Personio or HiBob.

What does the EU AI Regulation 2026 require of HR analytics systems?

According to Annex III of the EU AI Regulation, an HR analytics system is considered high-risk AI as soon as it automatically supports personnel decisions. These include recruitment, promotion, termination, and performance evaluation. As a result, many workforce analytics functions are subject to strict requirements as soon as algorithms independently generate recommendations for or against individuals.

What requirements will apply to HR analytics systems as of August 2, 2026?

The high-risk classification gives rise to four key obligations for new systems:

  • Risk Management and Technical Documentation in accordance with Articles 9 through 11 of the EU AI Regulation
  • Human oversight for every decision involving personal data, not just at a later stage
  • Data Protection Impact Assessment pursuant to Article 35 of the GDPR, plus a Fundamental Rights Impact Assessment pursuant to Article 27 of the EU AI Act
  • Co-determination by the works council pursuant to § 87(1)(6) of the Works Constitution Act (BetrVG) in connection with any introduction or adjustment

How can I ensure that my workforce analytics setup remains compliant?

You can ensure compliance by clarifying your data architecture and processes before purchasing a tool. This involves five key points:

  • EU Hosting: Servers located in the EU, documented data processing.
  • Purpose limitation: You must document in writing which data you are analyzing and for what purpose.
  • Human final decision: No algorithm makes the final decision regarding hiring, termination, or promotion.
  • Disclosure: You proactively inform employees about what data is collected and how it is analyzed.
  • Involve the works council: A works council agreement fulfills the requirement for employee participation.

How to Build a Future-Proof Workforce Analytics System

Workforce Analytics provides you with a quantitative overview of your workforce, from headcount forecasts and turnover to office utilization.

Starting in the fall of 2026, the EU AI Regulation will require specific frameworks for high-risk AI, documentation, and human oversight. With PULT, you can meet these requirements while still gaining reliable data for your workforce planning and site strategy.

  • PULT Workplace Analytics provides real-time attendance, desk, and room data as a data source for workforce analytics.
  • Native integrations with Personio, HiBob, Microsoft Teams, and Slack, so all your HR data is centralized in one place.
  • EU hosting and ISO 27001 certification as the basis for your GDPR and EU AI Act documentation.

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