AbstractMore and more organizations are beginning to realize that traditional organizational structures inhibit productivity because they do not consider the cross‐functional way in which work actually gets done. They attempt to reorganize, often in teams, but in many cases leaders and managers do not know what kind of infrastructure they'll need—that is, they 're not sure how many teams to form or how those teams should be integrated with the existing organizational structure.U.S. Department of the Navy organizations have found that they are able to improve productivity by establishing cross‐functional teams to manage and improve the core processes that most affect external customers and mission performance. This article describes a method for identifying primary customers, products, and core processes around which to structure process improvement teams. It also offers a practical step‐by‐step guide to assist the senior team of any organization—public or private—to meet its team‐building objectives and, ultimately, its productivity goals.