• Agile & Scrum Basics

What is an organizational silo and how do you break it?

What is an organizational silo?

We regularly get the question at Scrum Academy: what is an organizational silo? Organizational silos refer to the situation where different departments, teams or functional units within an organization operate in isolation, with limited communication and collaboration between them. In organizations with silos, the various parts of the organization are often focused on their own goals and tasks. As a result: little attention to the broader goals of the organization as a whole.

Benefits of an organizational silo

All experts are organized together in one department. This makes knowledge exchange between those experts easy. HR experts together. Lawyers in one team. Marketers in one department. Well, you got m. The idea behind this is that this makes the quality of those experts higher and they communicate easily with each other. Silos are based on the principle that if you put that knowledge together, things go more efficiently. Like in a factory. In the early 1900s. Where work consisted mostly of working on an assembly line. Then it works when you put all those performers together.

Disadvantages of an organizational silo

But silo thinking has drawbacks, of course. In Agile, all those clever “knowledge workheads” work together on complex issues. Issues where there is both uncertainty on the what to make and also on how to develop that clever solution that makes everyone happy. In that context, silos are paralyzing and slowing down. And here’s why:

1. Lack of communication: There is little communication between different departments, which can lead to a lack of information sharing, misunderstandings and duplication of effort.
   
   
2. Limited cooperation: Departments work in isolation from each other and have little interaction or cooperation in pursuing common goals, if any.
   
   
3. Competing objectives: Different departments may pursue their own objectives that sometimes conflict with the objectives of other departments or the organization as a whole. This does not work to the benefit of the entire organization or create value for customers.
   
   
4. Lack of flexibility: Agile is based on the ability to respond quickly to change. Organizational silos create rigid structures and processes that limit the organization’s flexibility. This can reduce the organization’s ability to adapt to changing conditions and slow the speed of delivery.
   
   
5. Distribution of responsibility: In an Agile environment, it is important that teams share responsibility for achieving goals and results. Organizational silos can lead to a situation where teams only take responsibility for their own tasks and goals, which can lead to lack of commitment and ownership over the whole.
   
   
6. Lack of transparency: Agile working requires a high degree of transparency and open communication within the organization. Organizational silos make it difficult to share information and create a lack of transparency about projects, priorities and decision-making. This can lead to misunderstandings, mistrust and lack of engagement from team members.

Problems with silo thinking

Organizational silos can lead to a variety of problems: inefficiency, lack of innovation, conflict between departments and reduced overall organizational effectiveness. Breaking silos requires efforts to improve communication and collaboration between different parts of the organization. Consider fostering a culture of openness, establishing cross-functional teams and establishing shared goals and rewards.

We have had great success with clients breaking down silos by forming multidisciplinary teams to create clear value streams and value chains. This promotes collaboration between all those different experts and ensures clear communication. Here, shared goals help tremendously.

Do you also need to de-silo your organization and form your teams around customer value? Let us know and we’ll schedule a no-obligation intake meeting.