2 days ago
Bridging the gap: How fusion teams drive business-IT alignment
The traditional boundaries between information technology (IT) and business units are becoming increasingly blurred. Especially as organizations adopt digital transformation initiatives such as artificial intelligence, the need for alignment across teams becomes even more critical.
To stay competitive and drive innovation, organizations should work to bridge the gap early between these two domains with high-impact collaboration and consensus on objectives.
THE CHALLENGE AND IMPLICATIONS OF SILOED OPERATIONS
Historically, IT and business units have operated in silos, each focusing on their individual department goals. In fact, according to McKinsey & Company's 2023 The State of Organizations report, 33% of respondents say initiatives in their companies are being launched in organizational silos, thereby limiting their effectiveness. This separation can lead to miscommunication, misaligned goals, and inefficiencies.
Business teams may view IT as a support function, while IT departments might see business units as lacking technical understanding. When IT and business strategies are not in sync, the consequences can be significant. Common challenges include:
Delayed Projects And Outcomes: Without clear communication and shared objectives, projects may face delays due to conflicting priorities or misunderstandings yielding delayed benefits.
Increased Costs And Risk: Disjointed priorities can lead to redundant efforts or investments in technologies that do not support business goals, resulting in wasted resources or increased risk.
Reduced Agility: Organizations may struggle to adapt to market shifts if IT and business units are not working cohesively, leading to missed opportunities.
THE SOLUTION: BUILDING FUSION TEAMS
To overcome these challenges, organizations should consider embracing fusion teams, which are cross-functional groups that integrate members from IT and business units. These teams work collaboratively toward shared objectives, leveraging diverse expertise to drive innovation and efficiency.
By breaking away from the traditional silos, fusion teams can combine technical knowledge with business insights to ensure both perspectives are considered from the start.
At my company, we've embraced the fusion team model to connect the dots between IT and business units. By dedicating professionals from operations, marketing, and technology to work together as cohesive pods, we've witnessed great improvements in project delivery times and value realization, without losing oversight. This collaborative approach has facilitated our ability to align our technological initiatives closely with business objectives, resulting in solutions that are both technically sound and strategically relevant.
KEY STRATEGIES FOR SUCCESSFUL FUSION TEAMS
Building a fusion team is a strong first step toward spanning the divide between IT and business, but assembling the team is only the beginning. To unlock real value, leaders should focus on how to set these teams up for long-term success by ensuring they have the structure, support, and shared goals needed to drive meaningful outcomes.
Strategies leaders can consider include:
Align On Shared Goals: Set clear, common objectives and target outcomes that connect directly to your organization's broader strategy. When everyone understands what they're working toward, teams remain focused, motivated, and aligned. Regularly revisit these goals to ensure they remain relevant as priorities evolve.
Dedicate Resources: Assign employees from IT and business units to work together full time with clear role definition and embedded decision rights. By committing dedicated resources, you foster stronger collaboration and create a sense of ownership within the team.
Choose The Right Team Structure: Think about whether a centralized or decentralized approach fits your organization best. Centralized teams provide structure, consistency, and focus, while decentralized teams may offer more agility and closer ties to specific business functions. In some cases, a hybrid model may offer the best balance.
Rethink Reporting: Consider adjusting reporting lines to drive deeper collaboration. For example, having IT team members temporarily report to business leaders across certain projects can help shift mindsets and instantly realign priorities.
Bridging the gap between IT and business teams is no longer a luxury, but a necessity in today's business environment. By fostering fusion teams and promoting a culture of collaboration, organizations can enhance efficiency, drive innovation, and achieve strategic objectives more effectively.
