The hidden dangers of corporate silos


Despite the development of technology and software that has been designed to unite employees in an organization, organizational silos are still very prominent. The silo mentality is when isolation between departments occur and departments decide to guard certain information that would be beneficial to another department in the organization. This type of mentality will drastically reduce efficiency in the overall operation, reduce trust and will contribute to the inefficiency of the company. When departments get isolated they begin to develop an ‘us vs them’ mentality by seeing other departments are competitors. In most cases, silos are the result of a conflicted leadership team.

Actions against organizational silos must be taken in the earlier stages of the business. The larger the business the harder it is to break organizational silos so it’s important to nip them in the bud. Silo mentality begins with management where each division within an organization sets goals that benefit their department but conflict with the goals of another department.

In order to break the silo mentality managers must have a free vision. Once ‘the elephant in the room’ has been identified all members of the management must work towards solving the issue by helping employees understand the company goals and the importance of the contribution of each department towards the big picture. This could encourage team members to think of departments as links in a chain instead of as separated silos. It is also important to make the employees realize the importance of transparency in the organization and how it would contribute towards a healthy company culture. By working together in cross-departmental exercises, collaborative training, and providing collaboration tools the silo mentality can slowly be eradicated. A good CRM tool would make it easy for employees to collaborate. When businesses can correlate information within the company and inter-departments work together then the entire company benefits.

A common vision of the company goals can turn the destructive silo mentality into a company culture where there is a division of labor but not the division of information.

May 31 at 12:57 pm

by Ahana Machaiah