Silos are organizational divisions that operate independently, creating artificial barriers to information flow, resource sharing, and collaborative value creation.
How They Form
Silos typically emerge from:
- Functional specialization
- Separate reporting structures
- Independent metrics and goals
- Departmental budgets
- Physical or digital separation
The Problems They Create
Information Barriers:
- Knowledge trapped in departments
- Duplicate efforts and waste
- Inconsistent customer experiences
- Slow decision-making
Resource Inefficiency:
- Redundant capabilities
- Underutilized assets
- Competing priorities
- Wasted coordination effort
Customer Impact:
- Fragmented experiences
- Repetitive interactions
- Handoff friction
- Inconsistent treatment
Breaking Down Silos
Requires:
- Shared outcomes and metrics
- Cross-functional teams
- Integrated systems
- Collaborative culture
- Unified customer focus
Silos are symptoms of organizational design that prioritizes internal structure over natural value flow.