Cross-Functional Teams: A Hidden Asset in Compliance Programs

Breaking Down Silos for Effective Compliance

Ensuring organizational compliance with laws and ethical standards is a complex, high-stakes endeavor, global regulatory compliance costs an estimated $1.9 trillion per year. Yet many companies tackle compliance in isolated departmental silos, with legal, HR, IT, and other units working separately. This siloed approach often leads to duplicate efforts, gaps in oversight, and confusion. As one expert notes, without cross-functional collaboration, organizations risk “working in silos, duplicating efforts, and creating confusion”. In today’s environment of evolving regulations and multifaceted risks, such fragmentation can undermine even the best-intentioned compliance programs.

The solution? Leverage cross-functional teams as a hidden asset in your compliance program. Cross-functional teams unite personnel from different departments and expertise areas to work toward a common goal. Instead of viewing compliance as the sole responsibility of a separate department, cross-functional collaboration embeds compliance into everyday operations across the business. By breaking down departmental walls, these teams ensure that compliance efforts are taken seriously across the business, not just “tucked away in legal”. The result is a more holistic, proactive, and resilient compliance program. This article explores how cross-functional teams can enhance compliance initiatives, and why HR professionals, business leaders, and compliance officers should treat them as a critical asset rather than an afterthought.

In general, a cross-functional team is a group of people with different functional expertise working toward a common goal. Traditionally used for product development or project management, this concept is equally powerful in the realm of compliance. A cross-functional compliance team might include, for example, representatives from legal, HR, IT, finance, and operations, all collaborating to design, implement, and monitor compliance measures. The idea is to involve all the relevant stakeholders so that every area of risk is addressed and compliance becomes a shared responsibility.

Why are cross-functional teams needed for compliance? Consider the scope of a typical enterprise compliance program: it spans employee conduct and HR policies (e.g. anti-harassment training), data privacy and cybersecurity, financial reporting and anti-fraud controls, environmental and safety regulations, and more. No single department has full visibility or expertise over this wide range of risk areas. By engaging a cross-functional team, the company ensures that each specialized perspective, whether legal interpretation, technical control, or employee training, is contributing to a unified compliance effort. Such a team might take the form of a compliance task force or committee that meets regularly, or an ad-hoc project team for a specific initiative (like implementing a new regulation or conducting an internal audit). In all cases, the role of the cross-functional team is to break down silos and enable coordinated action. Stakeholders share information, align on policies, and collectively monitor compliance issues in real time, rather than working in parallel (and potentially at cross purposes). This approach directly supports what regulators look for in an effective program: evidence that compliance is “rooted in risk, and taken seriously across the business”, not merely on paper, but in practice.

Cross-functional teams can transform a compliance program from a box-ticking exercise into a dynamic, enterprise-wide effort. Key benefits include:

• Holistic Risk Coverage and Reduced Duplication: When multiple departments collaborate, it ensures no major risk area falls through the cracks. Each function brings its own lens, legal can flag regulatory changes, IT can address cybersecurity requirements, HR can handle training and ethics, resulting in a 360-degree view of compliance. This comprehensive coverage prevents the inefficiencies of siloed work. For instance, before adopting a cross-functional approach, one compliance leader found that audit, risk, and ethics teams were “hitting the same business partners three different times” with separate inquiries. Integrating those efforts into a single workflow not only saved time but also eliminated conflicting or redundant asks. In short, cross-functional collaboration reduces friction between teams and avoids bottlenecks caused by miscommunication or duplicate tasks.
  
• Better Decision-Making through Diverse Perspectives: A cross-functional team combines the expertise of professionals from various fields. This diversity sparks more creative problem-solving and balanced decision-making. Rather than viewing an issue narrowly, the team considers legal implications, employee impact, technical feasibility, and business objectives together. As a result, solutions tend to be smarter and more robust than those devised in isolation. Bringing in colleagues from HR, legal, internal audit, etc., “provides greater results and effectiveness” because you get a wide range of perspectives, not just the compliance officer’s view. Research on digital transformation backs this up, 83% of advanced companies report using cross-functional teams (versus only 55% of early-stage companies), in part because these teams can sense and respond to changes more quickly. In the compliance context, that agility means the organization can adapt faster to new regulations or emerging risks.
  
• Greater Accountability and Transparency: When people from different departments work together on compliance, it creates shared accountability. No longer can business units claim ignorance of compliance requirements, they have a seat at the table. Cross-functional teams establish clear ownership of end-to-end processes, so tasks don’t get lost between departmental “gray areas.” Everyone knows who is responsible for what, and issues are raised openly rather than buried. In practice, this leads to faster issue resolution and consistent follow-through. As one trade compliance expert observed, the most successful organizations assign cross-functional teams with defined ownership and decision rights, and this shared responsibility prevents the finger-pointing that happens when functions operate in silos. Additionally, transparency improves, more people “understand the work that we do” in compliance, and compliance learns what other groups do, fostering mutual respect. This openness helps build a common language and trust between departments.
  
• Improved Compliance Culture and Engagement: Cross-functional collaboration sends a powerful message that compliance is everyone’s job. When employees from various teams are actively involved, compliance becomes ingrained in daily operations rather than seen as an external mandate. This inclusive approach can boost morale and ethical culture: employees feel empowered to voice concerns and contribute solutions, knowing that management and peers across departments are collectively committed to doing the right thing. In fact, involving a broad team can serve as on-the-job compliance training. Team members cross-train in each other’s domains, learn new skills, and become compliance champions within their home departments. One compliance officer noted that working closely with HR, legal, and audit partners provided “cross-training and development” opportunities and even aided succession planning for compliance roles. Overall, a cross-functional team promotes a culture of compliance where proactive risk management and ethical behavior are valued across the organization.
  
• Efficiency and Business Alignment: By aligning compliance efforts with business operations through cross-functional teams, companies often find they can do more with less. Collaboration helps streamline processes and integrate compliance checks into existing workflows. For example, a technology firm integrated its compliance tasks directly into its product development cycle through a cross-functional approach, enabling faster compliance and better-quality outcomes by catching issues early. Similarly, a smaller enterprise that spun off from a larger corporation managed to maintain an effective compliance program with a lean team by partnering with other departments and “not recreating the wheel”, instead, they built on existing tools and processes in HR and other units. When compliance is embedded into business processes, it stops being a last-minute hurdle and becomes a natural part of how the company operates, which can even drive competitive advantages (e.g. more resilient supply chains and trust with customers). In short, cross-functional teams help compliance initiatives support business goals rather than obstruct them.
  

These benefits illustrate why cross-functional teams are often the secret sauce behind successful compliance programs. Organizations that harness this collaborative power tend to have more effective and dynamic compliance management compared to those that rely on siloed structures.

How can an organization effectively leverage cross-functional teams for compliance? It requires intentional design and support from the top. Here are some best practices for building cross-functional collaboration into your compliance program:

• Secure Leadership Support and a Clear Mandate: Leadership buy-in is critical to empower cross-functional efforts. Senior executives should champion the idea that compliance is a shared responsibility across functions, setting the “tone at the top” that ethical conduct and compliance are non-negotiable. Establish a charter or mandate for the cross-functional team (or committee), endorsed by leadership, which defines its authority and objectives. For example, the team might be charged with coordinating enterprise compliance strategy, overseeing policy updates, or responding to specific risk areas. When leaders actively support these teams (and evaluate their success as a group), it creates a supportive environment where cross-functional initiatives can thrive.
  
• Include the Right People and Define Roles Clearly: Composition matters. Invite representatives from all key functions relevant to your compliance risks, commonly legal, HR, finance, operations, IT/security, and internal audit or risk management. Each member should understand why they are on the team and what expertise they bring. Clearly define roles and responsibilities so that there is no ambiguity in who handles which aspect of compliance. Ambiguous accountability is a recipe for gaps. Research by Harvard Business Review found that nearly 75% of cross-functional teams struggle, often due to “unclear governance” and lack of specific goals and accountability. To avoid this, designate a team leader or decision-maker who is accountable for the team’s outcomes, and ensure each member knows their decision rights and duties. For instance, one approach is to establish a Compliance Committee with a chairperson (such as the Chief Compliance Officer) and members from various departments who each own compliance tasks in their domain. This structure formalizes accountability and governance for cross-department collaboration.
  
• Set Common Goals and Integrate with Business Processes: At the outset, align the cross-functional team on shared goals, such as improving compliance training completion rates, strengthening internal controls, or successfully implementing a new regulation across the company. These goals should tie into broader business objectives (e.g. enabling a smooth entry into a new market by meeting all regulatory requirements). Shared goals help break down the “us vs. them” mentality and focus the group on collective success. It’s also wise to integrate the team’s work into existing processes whenever possible, rather than create entirely new workflows that might be ignored. For example, if the HR department is rolling out a manager toolkit for employee relations, the compliance team could contribute compliance guidance to that toolkit rather than launching a separate initiative. Using familiar channels (like including compliance checkpoints in project management routines, or adding compliance updates to regular business meetings) makes collaboration more seamless and less burdensome on everyone involved.
  
• Foster Open Communication and Information Sharing: Communication is the lifeblood of cross-functional teams. Establish regular meeting cadences (e.g. monthly compliance committee meetings or weekly project syncs) and use collaboration tools to keep everyone informed. Create communication protocols so that, for instance, if a compliance issue is discovered in one area, the relevant team members from other functions are alerted promptly. Some organizations leverage shared dashboards and reports accessible to all stakeholders, giving shared visibility into compliance status and pending tasks. This transparency ensures that problems are not hidden and that each function can proactively address concerns in real time. It also helps build a shared knowledge base, team members learn the basics of each other’s domains (e.g. IT learns about legal requirements, legal gains insight into operational challenges). Such knowledge exchange was highlighted as a benefit by compliance leaders who saw their teams “get an understanding of what the human resource group does, the legal group does… or any operating group” through cross-functional work. Encourage an environment where asking questions and challenging each other is welcome, this leads to more thorough analysis and mutual trust.
  
• Provide Training and Cross-Education: Even though cross-functional team members are chosen for their expertise, they may need some training to effectively contribute outside their usual silo. Invest in cross-education: train business managers on key compliance concepts relevant to their decisions, and conversely train compliance staff on business operations and priorities. One corporate study noted that successful programs train commercial teams on compliance implications and compliance teams on business impact. This two-way education builds empathy and smoother collaboration. Consider workshops or briefings where each function teaches the others about their role in compliance (for example, IT might present on cybersecurity controls, HR on ethical leadership and whistleblower processes, etc.). Over time, this raises the overall competence of the group. Additionally, ensure team members have the soft skills for teamwork, communication, conflict resolution, and project management, since they will be coordinating across departmental lines.
  
• Use Tools to Enable Collaboration: Modern governance, risk, and compliance (GRC) tools or even simple shared platforms (like project management software, document repositories, or compliance management systems) can greatly assist a cross-functional team. These tools act as a single source of truth where everyone can see compliance requirements, tasks, status updates, and documentation. For example, if a policy change is needed, the legal and operations reps can jointly edit and review it in a shared system. If an issue is found (say a security vulnerability with compliance impact), an alert can notify both the IT security lead and the compliance officer simultaneously so they can coordinate response. Having a common platform reduces the chance that critical information stays siloed in one department’s inbox. It also helps track accountability (who completed which task by when). Even simple measures like shared email lists, compliance Slack channels, or collaboration sites can bridge gaps. The goal is to bridge data and communication silos, minimizing the friction of working across different departments’ tools.
  
• Recognize and Reward Collaborative Efforts: To sustain enthusiasm, ensure that cross-functional compliance work is acknowledged. Leaders should recognize team achievements publicly, for example, if the cross-functional team successfully navigates a regulatory audit or launches a new code of conduct training across all divisions, celebrate that success. This could be as simple as leadership communications praising the team or incorporating their work into performance evaluations. When employees see that collaborative compliance efforts are valued in the organization, they are more likely to stay engaged despite the extra time commitment such teams often require.
  

By following these practices, organizations can embed cross-functional teams into the fabric of their compliance program. Start small if needed, perhaps form a cross-functional working group for one high-priority compliance project to demonstrate the value. As comfort with the model grows, you can institutionalize it via formal committees or permanent cross-functional roles (e.g. designating “compliance champions” in each department who meet regularly). The overarching principle is to treat compliance not as an isolated function, but as a collaborative enterprise where every key function has a voice and a duty. When structured correctly, cross-functional teams ensure that compliance activities are efficient, comprehensive, and aligned with business strategy, turning compliance from a check-the-box task into a source of strength for the organization.

While cross-functional teams offer many advantages, they are not without challenges. Being aware of these pitfalls and proactively addressing them will improve your team’s effectiveness. Here are some common issues and ways to overcome them:

• Misalignment and Conflicting Priorities: Team members from different departments may initially have conflicting goals, for example, Sales might prioritize speed and customer convenience, whereas Compliance prioritizes thorough due diligence. Such tension can cause friction if not managed. The antidote is to establish a shared vision and clear objectives from the start (as discussed earlier) and to have leadership explicitly prioritize the cross-functional team’s success. Ensure that each member understands how the team’s compliance goals support overall business success, so they don’t feel it undermines their functional targets. Regularly revisit and clarify priorities if you sense a team member’s functional goals are eclipsing the group’s mission.
  
• Unclear Governance and Accountability: If the team lacks clarity on decision-making authority or reporting structure, it can stall progress. In fact, a study of 95 cross-functional teams across industries found that nearly 75% were dysfunctional, often because they suffered from unclear governance and lack of accountability. To avoid this, assign a capable leader or coordinator for the team who is responsible for driving meetings and follow-ups. Also, define how decisions will be made (consensus, majority vote, or leader decision after input) so that the team doesn’t get paralyzed. Each member should know what they are accountable for delivering. If the team is long-standing, consider writing down a team charter outlining these governance points. Clarity here prevents the common scenario where cross-functional projects falter because “everyone thought someone else was handling that.”
  
• Time and Resource Constraints: Cross-functional teams usually consist of people who have a “day job” in their functional department. Juggling their regular duties with team responsibilities can lead to burnout or neglect of team tasks, especially if their direct manager isn’t supportive. Overcome this by securing managerial buy-in for each member’s participation, their bosses should agree that a portion of the person’s time will be dedicated to the compliance team. Treat cross-functional work as part of the performance goals, not an extracurricular activity. Additionally, be realistic with workload: use the team to focus on issues that truly require cross-functional input, and delegate more routine tasks to individual functions. Efficient use of sub-teams or task forces for specific subtasks can also help distribute work evenly. Remember that cross-functional initiatives might initially take more time (due to coordination), so build in schedule buffers and emphasize long-term efficiency gains to keep members motivated.
  
• Cultural and Communication Gaps: Different departments often have their own jargon, cultures, and ways of working. These differences can lead to misunderstandings, for instance, an IT analyst might drown the team in technical details while a HR manager might focus on employee sentiment; both perspectives are valuable but they need a common ground. To bridge these gaps, invest time in team-building and establishing a common language. Encourage team members to explain acronyms or concepts from their field and educate others (turn it into a learning opportunity). Rotating meeting facilitation or having informal coffee chats can help members appreciate each other’s work context. If geographical or remote, use video calls to build personal rapport. Over time, a cross-functional team can develop its own micro-culture that blends the best of each function, but early on, leaders should actively facilitate understanding. Also, be mindful of any power dynamics, for example, if a senior executive from one department is on the team with junior staff from others, ensure everyone’s input is solicited and valued so hierarchy doesn’t silence critical information.
  
• Maintaining Momentum and Continuous Improvement: It’s easy for a cross-functional effort to lose steam after the initial enthusiasm, especially once immediate issues are solved. Teams might meet less frequently or revert to old siloed habits. To combat this, embed the cross-functional team into your ongoing compliance governance. For instance, make it a policy that any significant compliance incident or new regulatory development triggers a cross-functional review by the team. Set a standing agenda that always looks at recent developments and upcoming risks, keeping the team’s purpose fresh. Solicit feedback regularly on what’s working or not in the collaboration process and adjust (this could be done via brief retrospectives or surveys among team members). Celebrating wins, as mentioned, also keeps momentum, when people see tangible successes like a reduction in policy violations or a successful audit, they appreciate the value of staying engaged.
  

By anticipating these challenges, you can put safeguards in place. Clear governance, strong leadership support, training in collaborative skills, and thoughtful workload management all go a long way toward making cross-functional compliance teams effective. Remember, the statistic that 75% of cross-functional teams are dysfunctional is not a condemnation of the model, but a cautionary tale, it underscores that organizations must actively prioritize the success of cross-functional projects through proper structure and support. If you do so, your team can beat those odds. In fact, many companies have turned cross-functional compliance teamwork into a competitive advantage, enabling them to manage complex risks more nimbly than competitors.

In an era of increasing regulatory scrutiny and organizational complexity, cross-functional teams truly are a hidden asset in compliance programs. They enable companies to embed compliance into the fabric of the organization, creating a program that is resilient, agile, and owned by all stakeholders. Rather than compliance being seen as the sole domain of lawyers or a small compliance office, it becomes a collective effort, one that can catch issues early, respond swiftly to change, and foster a culture of integrity. As we’ve discussed, the journey isn’t without challenges, but the rewards are significant: more efficient processes, better-informed decision making, and a stronger alignment between compliance and business objectives.

HR professionals and business leaders should view cross-functional compliance collaboration not as a luxury, but as a necessity for sustainable growth and risk management. By tapping into the diverse knowledge of your workforce and encouraging departments to work in concert, you turn compliance from a checkbox exercise into a source of strategic value. The best compliance programs often operate like cross-functional teams by default, breaking down silos and encouraging open dialogue across the enterprise. If your organization is not there yet, consider this article a roadmap to begin unlocking that potential. Start small, learn and adapt, and watch as the hidden asset of cross-functional teams elevates your compliance program to new heights. In the end, when compliance is everyone’s business, the whole business wins, protecting your people, your reputation, and your bottom line.

FAQ

What is a cross-functional team in a compliance program?

A cross-functional team is a group of employees from different departments—such as legal, HR, IT, finance, and operations—working together to oversee and improve compliance efforts. This structure ensures that compliance responsibilities are shared and integrated into everyday business operations.

Why are cross-functional teams important for compliance?

They bring diverse expertise and perspectives, enabling organizations to identify risks more effectively, cover all compliance areas, reduce duplication of work, and make better decisions. This approach helps break down departmental silos and fosters a culture of compliance.

What benefits do cross-functional teams bring to compliance efforts?

Benefits include holistic risk coverage, improved decision-making, greater accountability, stronger compliance culture, and better alignment with business objectives. They also increase efficiency by integrating compliance into existing workflows.

How can organizations build effective cross-functional compliance teams?

Organizations should secure leadership support, choose the right team members, set shared goals, define clear roles, promote open communication, provide cross-training, and use collaboration tools to ensure seamless information sharing.

What challenges can cross-functional compliance teams face?

Common challenges include conflicting priorities, unclear governance, time constraints, communication gaps, and maintaining momentum. These can be overcome with strong leadership, clear accountability, ongoing training, and regular performance reviews.