Cross-functional Management (CFM)





Two Categories of Goals

Cross-functional & Functional







About Cross-functional Management (CFM)

CFM manages business processes across the traditional boundaries of the functional areas. CFM relates to coordinating and synergizing the activities of different units for realizing the superordinate cross-functional goals and policy deployment. It is concerned with building a better system for achieving such cross-functional goals as innovation, quality, cost, and delivery.


Successful Company

5 Basic Elements

Balanced Business System

Performance-based Company

Value Chain






Two Interwoven Goal Categories

① Goals relating to overall improvements in the companies various systems and cross-functional activities;

 ② Goals relating to such measurable factors as profits, market share, and products.




Stretch Goals

Performance Management System




The two key management's concepts supporting the total quality management (TQM) strategy are cross-functional management and policy deployment. Management's commitment to these concepts is expressed by directions provided by top management. Top management usually formulates its annual goals on the basis of long-range strategies and plans.

The major goal categories are:

① Goals related to such measurable factors as products, market share, and profits. These goals are a corporate response to external requirements such as shareholder pressures for profits.

② Goals relating to overall improvements in the companies various systems and cross-functional activities such as employee education, customer service, customer satisfaction, cost reduction, quality assurance, delivery, and new product development. These goals is a self-generated move for improvement in corporate culture, and competitiveness. They call for cross-functional efforts cutting horizontally across the whole organization.

These two major goals for profit and improvement are interwoven.

Cross-functional goals should be set prior to determination of functional goals.




"We should regard all the other management functions as existing to serve the three superordinate goals of Quality, Cost, Delivery (QCD)."

~ Shigeru Aoki, Toyota





Cross-functional Goals are Superordinate Goals

In Total Quality Management (TQM) and Kaizen, the cross-functional goals of QCD (Quality, Cost, Delivery) are clearly defined as superior to such line functions as planning, design, production and sales.



Kaizen and TQM

Kaizen Mindset

Kaizen Culture




The positioning of cross-functional goal as superordinate ones necessitates a new systems approach to management, systems thinking and decision making. To achieve this, top managers must build their cross-functional expertise. The goals for each cross-function of quality, cost, and delivery should be determined by either top management or a cross-functional committee organized at the top-management level.