Signal Cross-functional processes consume 40 to 65 percent of managerial time without clear ownership

Summary

McKinsey identifies accountability gaps across functions as one of four main obstacles to process optimization. Processes that cut across departments, such as strategy, budgeting, forecasting, and performance reviews, can take up 40 to 65 percent of managerial and overhead time. Yet these processes often have no clear owner below the executive leadership. In the 2026 survey, 35 percent of respondents believe that breaking down organizational silos will unlock productivity in the next one to two years. The report lists related dysfunctions such as parallel organizations, redundant governance that keeps reopening decisions, and fragmented data systems with inconsistent metrics. Its prescription is to map key cross-functional processes and assign decision rights clearly.