People in different departments within companies are often in the habit of talking only among themselves instead of sharing information with other departments who need it. In fact, the lack of communication between the functional units of the company has become so common that most people accept it as the norm.
Within a given organization, the working units are usually structured by region—typically for sales activities—and by function (marketing, finance, operations, legal, etc.), and each one has its own leader, budgets, and goals. These units are referred to as “silos”—just like the grain storage tanks on farms, each one independent from the other. There is often friction between these silos, because their individual objectives frequently take precedence over the overall company objectives. This is where many problems are born. Silos are the opposite of interconnectivity, and therefore often an impediment to engagement.
My basic methodology for breaking down silos requires clarity or purpose, full transparency, some basic principles, and accountability.
Here are the Four Basic Silo-Busting Methods:
1. Declare the End of Silos: Perhaps the most important action you can take as a leader is to declare that you are running an integrated company and that each department’s goals and operations are only there to support and grow the entire business. You need to explicitly state that silo-like behavior is not acceptable and that leaders who behave that way will not progress within the company. In other words, you need to make it clear that you are looking for team players and not leaders of fiefs. This mandate needs to be reinforced in every interaction—including meetings, one-on-one discussions, e-mail, etc. Your messaging and actions will set the tone for creating an open, collaborative, non-siloed organization. And you need to be vigilant in “calling out” individuals who are not adopting the right behavior on issues big and small.
2. Utilize Cross-Functional Teams: It is vital that everyone who might be affected by a project or new policy be involved in every stage of that project. Often, someone will decide it is enough to send out a simple e-mail (assuming that everyone is going to be able to figure out from the e-mail what their roles and responsibilities are) when having a cross-functional meeting is what’s needed. You need to ensure that all participants needed for a discussion are present and that all the materials presented in advance of the discussion reflect the needs and concerns of all the departments involved. Cross-functional teams serve to reinforce the interconnectivity of all departments and can cut many potential silo issues off at the pass.
3. Ban Blind Carbon Copying (BCC): The very nature of BCC suggests that the sender is not willing to share the information with everyone involved—itself a topic of concern. One simple way I deal with this behavior is to “suggest” the elimination of bcc in all e-mail. When I receive a bcc copy of an email, I send my response to all recipients with a suggestion that they work this issue out together. Duly embarrassed by this, the senders of these e-mail messages usually realize it is better to just cc all the appropriate people and eliminate any potentially hidden agendas.
4. Set Integrated Goals: The goal-setting process needs to be one that guarantees the right balance between departmental goals and company-level goals. I have seen many, many variations of this basic principle, and of course, there is no generalizable correct formula. At the highest levels within an organization, the vast majority of the leader’s focus should be on overall company goals; that company-as-a-whole percentage shrinks as you move downward within the organization. A leader at a lower level in the company has a high degree of control over her department, but very little ability to affect the company as a whole.
Of course, for these methods work effectively, it is essential to identify the right key performance indicators (KPIs) to track within and between departments or units. For example, an integrated goal might be to generate one thousand new sales next year, with 90 percent of new customers activated within three weeks, and the balance within five weeks. This goal will necessitate tracking key metrics and each affected department working together to achieve the integrated goal.
Many companies, realizing the negative outcomes silos create, are actively seeking ways to promote cross-functional working groups—and more directly, eliminating the silos specifically. This is a very positive trend. Good fences may make good neighbors, but in business, silos do not make good leaders.