La muerte del silo(by @jrhuerta)

Most opportunities to add value to the organization are not anyone’s responsibility. They are in between functions.

What are the symptoms?

How many of these can you identify in your organization?● People are too busy to help others● You know something has been done already but can’t find it● We only talk to our own people. No external inputs (other teams, units,

deps. etc.)● Asking for help is seen as a sign of weakness● People believe they should fix their own problems

Check!

Four barriers to collaboration

Hoarding barrier:People are unwilling to help others.

Transference problem: People are unable to transfer information easily from one place to another

Not invented here barrier: People are unwilling to ask others for help

Search problem: People can not easily find the information of people they need

How do silos form?

Your company on paper

Your company on the real world

Formal structure

Value creation structure

Informal structure

Organizational forces

Which forces?

● Optimization■ Division of labour■ Efficiency

● Culture● Our mental models● Our biology● more...

Optimization: Division of labour

1700’s - 1840’sIndustrial revolution.

Having the workers perform a single or limited tasks, in order to reduce cost and optimize production

Unskilled workersShorter training, lower salaries, can hire more

CraftsmenLonger training, more

skilled, lower salaries, can hire less

The Allen curve

In 1977 Thomas J. Allen was the first to measure the strong negative correlation between physical distance and frequency of communication.

The “Allen curve” estimates that we are four times as likely to communicate regularly with someone sitting 2m away from us as with someone 20m away, and that we almost never communicate with colleagues on separate floors or in separate buildings.

Classification systems

Silos are created by: Misalignment

How do weget rid of them?

Silos are not going anywhere

What doesn’t work?

● Incentives● Changing the formal structure (only)● Changing location (only)

Incentives

Changing the formal structure

What works?

● Blur the borders not the functions

Sales

Sales

IT

IT

Opportunity

Opportunity

How?

● Make data available to everyone● Build and nurture the informal structure

Data transparency

Build the informal structure

Build the informal structure

● Internal bootcamps● Internal rotations between teams or

departments● Have lunch!

What else works?

● Blur the borders not the functions● Aligning your organizational vectors

Purpose, vision, objectives

Planet IT Department

Planet Marketing

Department

Planet Operations

Department

Why it works?

Developer

Father

Gender

Student

I am all this!!

Why it works?

We are defenders!!!

Strategy map

Recap

The biggest opportunities to add value to the organization lay between functions and by working on your silos you can take advantage of those opportunities.

Recap

Silos are not going anywhere because the forces that create them, are not disappearing anytime soon.

You can minimize their effects by:● Blurring the boundaries between silos, not the

functions● Aligning your organizational vectors

Thank you!www.smokingbrains.com

@teamsthatexcel

José E. Rodríguez HuertaOrganizational Consultant@jrhuerta