Friday, September 20, 2013

Business Silos, Organizational Silos, Information Silos Meanings - the 'Silo Effect'

Hello World-

Business Silos, Organizational Silos, and Information Silos meanings and the Silo Effect



In reality, Business Silos, Organization Silos, and Information Silos all mean the same thing. For the sake of simplicity, let's refer all of them collectively as either business silos or organizational silos. What is the definition of these? Surprisingly, there are many different definitions all over the place. Doing a bit of research, there is a little commonality: Business Silos is a corporate structure where groups within a business enterprise are unable to effectively collaborate or communicate which creates a high level of overlap and inefficiencies.

But why have business silos become such a plague within corporations? This is simple: Self preservation and time.

Yes, this is a little negative, but when you research the topic of organization silos or business silos, you'll find that the businesses that demonstrate the 'siloed business behavior' the most, are focused on their own success and tend to focus inward instead of outward. This is especially true since the 2008 great recession.

The Business Silo Effect


The effect of business silos is very obvious: Lack of collaboration, lack of communication, and substantial lack of organization efficiency. Comically, things have gotten worse since the clash of the 'me generation' and the 'I generation'. This is beyond the scope here, but comical to mention. The results are often organizational departmental conflict. Can you imagine departments fighting within the same organization. Yes, unfortunately, its very common. The end result is an out of alignment and disorganized business which creates havoc on a business strategy.

Fixing Business Silos


This is not an easy thing to fix. Its like changing a leopards spots. One way to address this is to give business units a day in the life of other units. While doing so, treat them as they treat others. Basically, simulate the dysfunction the business silos create. People will quickly realize the problems the business silos create and will work to fix the behavior. The big assumption here is that they want to be fixed. If the business managers have no interest in fixing the business silo (they are setup to loose something), then addressing the business silo or information silo will be very challenging.

Hope this helps.

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