Organizational silos - reality distortion, shelter or foundation? Ways out of a classic dilemma

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Silos in companies are increasingly under criticism. The more companies focus on fast interaction with customers and partners, the more critical internal exchange becomes, the more adaptable structures should be, the more the disadvantages of these structured and self-contained efficiency drivers become apparent. 

In the course of development towards ever larger companies, silos have been the panacea for being able to work in a focused manner. They were the areas in which experts and other experts were able to solve the significant problems. They were the protected space from the top management level downwards, in that they could be switched and controlled without being influenced. 

However, they were also the workspace into which only that part of reality could penetrate which necessarily had to be allowed to enter.

Man( ) made silos 

From the inside, silos consist of highly teams that work together in a trusting, extraordinarily productive and result-oriented manner to achieve their own goals.

From the outside, silos destroy cooperation, hinder exchange, networking, communication and promote excessive internal complacency.

They are as ugly from the outside as they shine from the inside.

Bulk material is stored in silos. When you put people in, you often spill a lot.

Silos are the result of structured thinking and division of . They reflect what charts, decision-making processes management structures dictate and demand of them. You always get your d'être directly from the management. 

If you want to change the effect of silos perceived from the outside and bring the inner shine outwards, you have to start at several levels to supplement efficiency with effectiveness. 

Three starting points 

The starting points are classics of an agile understanding of cooperation. I this again and again by design checks from (large) companies (if you like to perform a demo Design Check click here). In many cases, the results show clear indications of poor cooperation, a lack of depth in relationships, divergent objectives or a lack of clarity regarding a common meaning. Logically, this has an adverse effect on the perception of the culture, it reduces the use of dynamic skills and distorts customer perception and sabotages the customer experience.

The first point is to facilitate and promote communication across silos. Where up to now silo internal language has prevented the exchange, "translators" and multipliers must help to establish a common communication level. Positive news from the silos, "calls for help" and questions out of the usual structure help to overcome speechlessness. If this exchange is promoted, new networking emerges. If moreover, the idea of coming together across departments to solve specific problems is supported, there are, for example, virtual and real spaces that allow discussions in small groups and it is revealed who can contribute which experiences and so that the opportunity to throw away old arises all the more.

The more diverse, the more open, transparent, trustworthy and networked people work together in the resulting groups, the faster the change will succeed.

However, that alone is not enough!

The second element is awareness of one's own and others' goals. The lack of congruence (and the congruence to be built up) is a critical factor to make cooperation possible at all. Only clear common goals make it possible to design open, transparent decision-making processes that include the variously available competencies in such a way that they support the achievement of the goal only, as conflict-free as possible and thus quickly.

This leads to the third point. Reflection and revision of the operating logic is another element to enable efficiency and effectiveness at the same time.

It is not enough to review the business model and processes. The structure and the framework conditions and guidelines for cooperation anchored in the management model must also be examined. 

However, many companies with pronounced silo systems are blind to their operations at this point, so that this rarely succeeds without targeted reflection and support from outside.

If you want to crack your silos

• Clarify the goals and priorities within each silo and compare them with the goals and priorities of the company.
• Collect the goals and priorities of all areas and silos and create a shared picture.
• Reconcile this mutually shared picture with the goals of the company and define the areas in which cooperation is necessary. 
• Create spaces and structures in which these common goals are worked on.
• Make the information and information deficits in the silos transparent. Create a forum in which this information can be exchanged between the participants (also on a personal level!).
• Create networking and exchange across borders (also within the company).
• Find out where there is a willingness, even on an individual level, to work together with others to bring in better leadership personally and collectively.

However, above all: look into the mirror on all levels (at the very top and the very bottom) and ask yourself where silos help and where they interfere. Consider the consequences and eliminate those disruptive factors that hinder the potential and energy to affect the success of the company.

If you succeed in doing this, networking, new connections and the use of dynamic capabilities can turn what was previously Silo into the foundation that will also carry your company into the future. 

May 16, 2018 - ZUKUNFTheute - erfolgreicher.zusammen.wirken

Guido Bosbach is the founder and CEO of ZUKUNFTheute, consultant & mentor for top management. He's a leading expert in designing and implementing successful collaboration patterns and contemporary management design.

In December 2017, he was named one of the 25 LinkedIn Top Voices 2017 D-A-CH.

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