What governance structure best supports cross-functional teams?

• A. Centralized, with top-down control.
• B. Clear governance with shared objectives and processes.
• C. No formal governance or processes.
• D. Isolated decision rights.

Answer: (B)

Cross-functional teams work best when governance provides a common direction and a clear way of coordinating across functions. When objectives are shared, every function understands what success looks like and how their work fits with others, so efforts stay aligned. Clear processes for decision-making, escalation, resource allocation, and accountability create predictability and reduce friction between departments, helping the team move fast together rather than getting stuck in silos. This kind of structure avoids bottlenecks and ambiguity that can come from overly centralized control or from having no formal governance at all, and it avoids the misalignment that comes from assigning decision rights to isolated parts of the organization. In short, a governance setup with shared objectives and standardized processes provides the cohesion and coordination cross-functional teams need to perform effectively.