Departmental Silos: The Achilles Heel of Your Company

Departmental Silos: The Achilles Heel of Your Company






January 8, 2019

Businesses are gradually being chained by a number of forces so ubiquitous and accepted by all of us, that we fail to notice their impact on businesses, economies, and people. Today, most organizations become veritable bureaucracies as they grow bigger. Every person sits inside his/her own department and is very careful about making sure that their department doesn’t carry the blame if there is a mix-up. Covering the tracks becomes the norm. The resulting departmental silos create stilted communication.

Problems With Silos
Problems With Silos

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Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

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  • Above might be the reasons of Silos as I know the Common causes of silos:
    Companies value domain expertise
    Divided ownership of processes
    Business units and functions are geographically dispersed

    Am I right?

  • A silo mentality is a reluctance to share information with employees of different divisions in the same company. This attitude is seen as reducing the organization’s efficiency and, at worst, contributing to a damaged corporate culture. The silo mentality is generally seen as a top-down issue arising from competition between senior managers and departments. The protective attitude towards information begins with management and is passed down to individual employees.

  • Organizational silos typically do not share the same priorities, goals or even the same tools, so departments operate as individual business units or entities within the enterprise. Silos occur because of how an organization is structured. Managers are responsible for one specific department within an organization and each manager has different priorities, responsibilities and vision. Often, managers are not aware of the priorities and goals of other departments and there is little communication, collaboration and teamwork between these business units.

  • Departmental silos can both help and hurt Enterprises. The negative impact of departmental silos is compounded when departments prioritize their own initiatives and goals over those of other departments, sometimes even over those of the business as a whole, resulting in missed or failed opportunities for communication and collaboration. Organizational dysfunction too often follows. Breaking down the departmental silos often cause must start at the top.

  • Almost every large organization has experienced both the pros and cons of departmental silos. Silos occur when barriers exist preventing the interdepartmental sharing of knowledge and information. This lack of information flow results in departmental isolation and territorialism. But departmental silos aren’t always undesirable. When functional knowledge is concentrated within a department, the creation of subject matter experts on that specific aspect of the business is the result.

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