Exploring Cross-Functional Organizational Models

Leanne ReiszJanuary 22, 2025
Organizational Effectiveness

Mission-driven organizations—from health care systems and city governments to federal agencies—are navigating increasingly complex challenges as inter-dependent teams operate across departmental, geographic, and programmatic lines. Traditional hierarchical structures designed for clear chains of command and functional specialization, often struggle to accommodate the collaborative demands of modern service delivery. Teams must now coordinate across policy, funding streams, and jurisdictions. This fragmentation can lead to duplicated efforts, slower execution, and disconnects between strategic intent and frontline operations.

Whether your organization is implementing a public health initiative or launching a new digital platform, success depends on teams that can collaborate across boundaries—without sacrificing clarity or accountability. At Blackberg, we help mission-driven organizations design cross-functional structures that foster collaboration, streamline operations, and drive measurable results. In this article, we explore four proven models—matrix teams, squads, cross-unit working groups, and embedded strategists—and how each can be used to translate strategy into sustained, cross-functional action.

The Matrix Model: Dual Leadership for Complex Missions

The Matrix Model assigns staff to report to two leads simultaneously--typically a functional manager and a project manager. This model is common in large federal and health systems where employees are part of a central function (e.g., IT or communications), but they also serve a specific mission or program (e.g., mental health, digital modernization, or Veterans benefits).

When implemented well, a matrixed structure creates transparency, resource-sharing, and stronger alignment between technical expertise and strategic priorities. However, it requires clarity in decision-making, communication norms, and conflict resolution protocols. Without these factors, dual reporting can lead to confusion or duplicated efforts that lead to inefficiencies.

For organizations managing enterprise-wide initiatives with limited resources, the matrix model provides flexibility and responsiveness—especially when central teams must support multiple field locations or mission areas. An environment lacking strong communication norms or clearly defined decision rights, a matrix structure can quickly become inefficient or conflict prone. Successful implementation requires a level of organizational maturity, role clarity, and leadership alignment that not all teams may be ready to support.

The Squad Model: Small Teams, Big Autonomy 

Popularized in the technology sector and increasingly adopted by government innovation units, the Squad Model structures teams as small, cross-functional groups that own a product, initiative, or outcome. Each squad is typically composed of a few key roles, such as the designer, subject matter expert, data analyst, and project lead. Everyone is then empowered to test, build, and iterate with relative autonomy.

Squads work best in fast-paced, high-priority areas where rapid learning and iteration are critical. For example, squad teams can lead the development of new tools, pilot programs, or digital products without needing to wait for broad organizational buy-in at every step. The squad model thrives with clear purpose, transparent goals, and strong coaching—not top-down management. It encourages accountability through ownership and rapid value delivery.

Cross-Unit Working Groups: Aligning Departments Around Shared Goals 

Cross-unit working groups unite representatives from multiple departments to collaborate on a strategic initiative, such as sustainability, equity, or workforce modernization. While members still report to their original departments, the group meets regularly, shares updates, and drives coordinated progress.

This model works particularly well for municipalities and large agencies tackling long-term or horizontal goals. It allows departments to retain their identities and priorities, while contributing to a shared outcome. For example, a city’s economic development strategic plan might involve planning, transportation, public works, and community services--all aligned through a working group that tracks progress and identifies interdependencies.

Success in this model depends on leadership support, defined roles, and dedicated facilitation. Without it, cross-unit groups can lose momentum or devolve into status meetings.

Embedded Strategists: Putting Execution Support Where It’s Needed 

In some cases, organizations benefit from embedding strategic, operational, or communications specialists directly into teams that are executing major priorities. These embedded roles serve as liaisons between leadership vision and frontline delivery--translating strategy into workflows, coaching staff, and identifying gaps before they derail progress.

This model is especially effective during times of transformation, such as launching a new department, scaling innovation, or turning around underperforming programs. By positioning cross-functional experts inside the work, organizations can stay agile, while maintaining strategic alignment.

Conclusion

Cross-functional team models are not one-size-fits-all; however, for mission-driven organizations operating in complex environments, they are essential. Whether through matrix structures that balance functional depth and mission focus or autonomous squads that accelerate delivery, the right structure enables strategy to move from intent to impact.

At Blackberg, we help teams work smarter across boundaries through optimal organizational models. Learn more about our Organizational Effectiveness services here.