Wharton@Work

January 2026 | 

Breadth Is Power: Cross-Functional Knowledge

Breadth Is Power: Cross-Functional Knowledge

Leaders rarely fail because they lack expertise in their own field. They stumble when decisions are made without understanding how those decisions ripple across finance, operations, customers, and technology. Evidence for that knowledge gap is strong. In a Spencer Stuart analysis of executive transitions, one of the most common reasons new leaders faltered in their first 18 months was the inability to collaborate and influence across functions and business units. Academic research reveals similar findings: studies of cross-functional teams show that shared understanding and collaboration across disciplines strongly predict organizational effectiveness.

The takeaway is clear: leaders who think narrowly, within the confines of their own function, limit their effectiveness and the performance of their organizations. Those who think systemically, understanding how marketing decisions affect operations, how finance shapes strategy, and how technology underpins every customer experience, make better, faster, more sustainable choices.

As organizations become more complex, cross-functional fluency has become essential to sound leadership. It enables better questions, sharper decisions, and a more cohesive strategy. It turns functional managers into systems thinkers: leaders who can balance competing priorities, anticipate unintended consequences, and guide their teams confidently across organizational boundaries.

Beyond Functional Mastery

That need for breadth defines Wharton’s Business Essentials for Executives program. Participants immerse themselves in the fundamentals of every major business function — finance, accounting, marketing, operations, and strategy — while strengthening their leadership capacity.

Academic director Gad Allon, a Wharton professor of operations, information, and decisions, says cross-functional fluency is “the new leadership currency. Whether you’re a marketing director preparing for a general management role or a founder scaling your company, you need to understand what motivates people in other parts of the business: the frameworks they use, the metrics they care about, and how they define success. That’s what separates managers who execute from leaders who grow.”

This breadth of understanding helps every functional leader make better decisions. But as people advance, it becomes essential. “At the general management level, you’ll have people reporting to you from all different functions,” Allon says. “You don’t need to be an expert in operations or marketing, for example, but unless you understand the main challenges in those areas, you’ll never be able to drive growth.”

The program helps executives reach that level of understanding. Each day centers on a core business discipline taught by Wharton faculty who translate theory into practice. The sessions link back to the leadership challenge of integration: seeing how the parts connect, where trade-offs occur, and how choices in one function shape outcomes across the business.

Just as important, participants learn to demystify areas outside their expertise. “Finance and accounting, for example, are filled with jargon that can make people feel excluded from key decisions,” Allon notes. “We help them cut through that and feel confident asking better questions.” The goal is empowerment, replacing fear of the unfamiliar with curiosity and command.

When Siloed Thinking Goes Wrong

Allon points to corporate cautionary tales that illustrate what happens when organizations lose an integrated perspective. One is Boeing, which “optimized primarily for financial metrics over time and lost its connection with engineering and manufacturing,” he explains. The company’s emphasis on short-term returns was initially applauded by Wall Street, but it eroded the technical excellence that had defined Boeing for decades. The outcome, which Allon details here, “was long-term neglect and cultural change that accompanied a narrow strategic shift.”

Another example is Lululemon, the athleisure pioneer once celebrated for innovation. “As the company grew, its focus shifted to measurable metrics including dollars per square foot, number of stores, and number of categories, at the expense of creativity,” he explains. “Processes became rigid; creativity became institutionalized. They’re still successful, but compared to competitors like Nike or Alo Yoga, they’ve lost that early-stage dynamism.”

The pattern is familiar: when leadership becomes dominated by any one function, the organization loses sight of the big picture. Founders turn into managers; innovation gives way to process. “It’s what happens when you move from founder-led to management-led,” Allon says. “You start to master specific functions but forget the system that made you successful.”

Building Cross-Functional Fluency

Allon advises leaders to start with curiosity. “Whenever you interact with someone from another function, see how they think about the problem, what metrics matter most to them, and what trade-offs they face,” he says. Understanding those perspectives leads to smarter, more balanced decisions. “That mindset can be developed from day one,” he adds. “Cross-functional fluency isn’t just for executives. It’s a habit anyone can build.”

Business Essentials for Executives jumpstarts that process. Participants arrive unsure of how much value they can add outside their own expertise and leave ready to engage in higher-level conversations across the organization. “They leave feeling empowered to ask the right questions,” Allon says. That empowerment ripples through their organizations as they return better able to identify blind spots, challenge assumptions, and connect strategic dots. “Every function is a system with its own incentives and language,” he adds. “Once you learn that language, you can elevate the discussion.”

A month after the program ends, Allon reconnects with participants for online “office hours,” encouraging them to apply what they’ve learned right away. “If you don’t use something in the first month, you’ll never use it,” he notes. That hands-on philosophy reflects Wharton’s broader belief in learning by doing. “AI can do many things,” he adds, “but it’s not yet good at learning from experience. Humans are.”

That ability to translate knowledge into action is what turns capable managers into growth-minded leaders. For executives and entrepreneurs alike, Business Essentials for Executives builds both the breadth and the confidence to lead across functions and keep learning long after the program ends.