A silo is a structure used for storing bulk materials. On farms, they are typically used to store grain or feed, and the thin cylindrical structures are as familiar to people as the quintessential red barn. Silos are an important and essential part of agriculture but can be destructive in the business world.
The Silo Effect in business refers to the lack of communication across departments or groups. On a farm, the silos keep the grains from mixing; in an organization, the silos prevent information from flowing. And don’t be fooled, the Silo Effect does not just affect the Fortune 500 companies; it is prevalent in businesses of all sizes. One person can represent their own silo and damage the flow of information to other individuals, ultimately affecting productivity.
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As a business leader, you need to be mindful of this trend and work to break down the Silo Effect.
We have all been victims of the Silo Effect. We have all been frustrated customers of businesses and have wondered if the right-hand knows what the left hand is doing. Remember to work constantly to instill a culture of collaboration in your organization. As the leader, you can effectively SMASH the SILOS.