I am in the midst of another weekend at the baseball field as my son’s team is taking place in a tournament.  While watching the boys try their hardest to score some runs and bring home a “win” I noticed that things were starting to fall apart a bit.  They weren’t working together and were focused on their own individual positions instead of working together as a team.

The same holds true for businesses – most often in large companies.  Departments work independently from other departments.  Individuals work independently from other teammates.  And through this, we find that there are silos being built up throughout the organization.

The issue isn’t whether or not your company will have silos. There are predictable reasons why ALL companies struggle with them.  It’s what you do about it that makes the difference.

Here are 5 reasons why you have silos…

1. Organizational Structure – Silos typically occur because of the way companies are structured. The organization is separated into divisions, departments and functions.  Each group has their own accountabilities and responsibilities allowing senior managers to focus on the successes of their organization.  This is important to allow for growth of the organization, however to go from being a good company to a great company requires insight into what is happening in other divisions.

2. Leaders are compensated based on their individual performance– In most companies, we are rewarded for achieving our individual goals.  And goals are typically set at a department level and then flow down the chain to associates within that direct organization.  If goals are set vertically only and do not consider the horizontal impact of those goals, then there is no reason for individuals to think “outside their silo”.  It’s human nature to focus on those things that result in personal reward.

3. Most leadership training is vertical – Think about the last leadership training you took part in. Did the training speak to the benefits that come from working more cohesively with other departments in the company?  Leadership training often provides exercises and examples that are focused on individuals or singular departments in lieu of multiple leaders coming together for training on how best to work together.

4. Human Nature – For most of us – the questions is “why”.  Why do we leave our homes every morning and go to the office?  Some people are truly driven and fulfilled by the excitement and power of working in a fast-paced corporate environment.  Others are focused on making a living so they can provide better lives for themselves and their families.  There are countless reasons why we do what we do each day, but generally, people are focused on what will help them move forward in their careers and with that comes a focus on personal goals and the goals of those immediately around them – their direct team or “silo”.

5. Succession – Those who are playing the game are all jockeying for the prize that really counts – moving up the ladder into that next position. Individuals are aware that they are engaged in a zero-sum game and usually have high needs for power and achievement.  When individuals are focused on personal growth, they often lose sight of the benefits that can come from working “across” the company.

Quick wins to get started in silo busting:

• Review your organizational chart. Is there a role or roles you can create to help align the team horizontally like a project manager or integrator? I spent a great deal of time in my position at Wyndham Worldwide looking across the organization for synergies and opportunities to work horizontally.
• Educate the teams about what other teams do, how they contribute and what’s happening. Simple training can go a long way to getting the team thinking outside of their silo.
• Include one performance measurement goal that includes partnering with another function – especially for senior leaders and managers.

The Bottom Line:

Most organizations set overarching company missions but finding the thread that links those missions to each piece of the organization isn’t always easy.  Silos are inevitable and a necessary part of any company, however finding the link between the silos is the key to success, growth and opportunity!

Breaking down silos isn’t easy but executives who invest time and money in it reap the tremendous benefits such as cost reductions due to the elimination of duplication of efforts and man hours saved by working more efficiently.  Revenue generation can be endless if your team is working together and energized to be more driven by innovation and new ideas.

Do you struggle with the negative impact of silos in your organization?  Do you need help aligning your stakeholders around company priorities and initiatives?  My Stakeholder Assessment and Alignment Services helps drive a comprehensive view of people, processes and perceptions from different parts of the organization.  Reach out to me to discuss how I can help or visit my website for more information.