Organizational silos can be just as constraining on an organization’s growth as disconnected IT systems. Overcoming this problem requires specific capabilities, argues Darrel Popowich, the chief visionary officer at Business Relationship Management Institute.

In today's hypercompetitive landscape, business leaders find themselves at the forefront of a new era, where harnessing the power of technology is no longer an option but a strategic imperative. As organizations navigate the complexities of the digital age, IT executives in particular are tasked with steering their companies through a myriad of challenges and opportunities, from driving digital transformation initiatives and fortifying cybersecurity defenses to amplifying the use of data science and incorporating artificial intelligence (AI). In this time of unprecedented technological advancement, organizational siloes stand as formidable impediments to seamless progress in any of these areas, placing organizations at a distinct competitive disadvantage. 

Marked by isolated pockets of information and expertise, a siloed organization erects barriers that hinder the cross-pollination of ideas, collaboration, and the efficient flow of information. These organizational divisions not only stifle the potential for holistic progress but also undermine an IT leader’s ability to successfully navigate the complexities of technological advancement.

Experienced IT executives know well the limiting power of siloed data and systems. Organizational silos are just as constraining, but require a different set of capabilities, disciplines, and roles to overcome. Addressing the challenge of siloes become paramount for executives seeking to propel their organizations into an age defined by customer centricity, speed-to-market, and the integration of the rapidly advancing technologies reshaping our future. Business Relationship Management (BRM) can be a powerful tool for breaking down the barriers that stand in the way of digitally enabled progress.

Understanding the Roots of Organizational Siloes

Siloes in organizations can develop for any number of reasons, often unintentionally. Understanding the root causes of the divisions that exist is important to addressing them. Some common reasons that organizational siloes exist include:

•    Hierarchical structures. Many businesses are organized in a traditional hierarchical fashion, which can inadvertently foster siloed thinking. Departments or teams may become focused on their own objectives and goals, neglecting the bigger picture and inhibiting cross-functional collaboration.
•    Ineffective communication channels: The inability to communicate effectively across an organization can lead to siloed behavior. When teams are unaware of each other's initiatives, projects, or challenges, they are less likely to collaborate and share valuable insights.
•    Departmental rivalries: Competing goals and objectives among departments or business units can lead to an "us vs. them" mentality, fostering organizational barriers. Such intracompany competition often results from a lack of alignment between departmental objectives and the overall strategic goals of the organization.
•    Limited cross-functional collaboration: When there is little interaction and collaboration between different functions or departments, siloes calcify.  In the absence of cross-functional teams or projects that encourage working across functions, departments may focus solely on their own tasks or goals.
•    Lack of shared visions and goals: Lack of alignment and shared understanding of the organization’s vision and goals can also exacerbate organizational silos.  Departments that have conflicting priorities or do not see how their work contributes to the bigger picture are less likely to work together.
•    Technology disparities: Disparate technologies and tools across various departments can create barriers to information sharing, hindering the seamless flow of data and collaboration.

 

Related article:

Why IT’s Relationships Matter More Than Its Technical Prowess

By Frank Wander

 

How BRM Works

BRM can be a powerful strategy to dismantle the barriers erected by organizational siloes. At its core, BRM is a research-based discipline dedicated to nurturing robust, mutually beneficial relationships among diverse business units, teams, and stakeholders. This strategic approach serves as a bridge, connecting disparate elements within an organization that might otherwise operate in isolation.

By actively implementing BRM practices, IT leaders can pave the way for a cultural shift, effectively addressing and mitigating the root causes that give rise to siloes. An intentional focus on relationship-building facilitates the more seamless exchange of information, fosters greater collaboration, and engenders a shared sense of purpose.

At the heart of the BRM approach is a core set of practices that together can address the root causes of organizational siloes:

1.    Aligning objectives through strategic partnerships. BRM encourages the formation of strategic partnerships and collaborations. By aligning the objectives and goals of different departments, the organization can make progress towards a shared vision. This strategic convergence helps break down siloes rooted in competing interests and fosters a more collaborative environment.
2.    Facilitating communication and transparency. One of the primary principles of BRM is open communication. Establishing clear communication channels ensures that teams are aware of each other's activities, projects, and challenges. Regular forums, meetings, and communication platforms create an environment where information flows freely, reducing the likelihood of siloed thinking.
3.    Mitigating departmental rivalries. BRM actively works to highlight the interconnectedness of different business functions. By promoting a culture of collaboration and emphasizing the shared objectives of the organization, BRM helps dissolve the barriers created by internal competition and fosters a sense of unity and shared purpose.
4.    Integrating technologies. As I former CIO myself, I know most IT leaders will already be on board with this practice. Recognizing the importance of technology in facilitating seamless collaboration., BRM advocates for the integration of diverse technologies across departments to ensure a unified approach. This eliminates technology fissures and allows for the smooth flow of data and information.
5.    Cultivating a customer-centric approach. BRM emphasizes on understanding and meeting the needs of customers. By adopting a customer-centric approach, organizations can break down siloes by redirecting an overly internal focus towards providing value to the end users. This shared focus on customer satisfaction unites different business units around common goals.
6.    Promoting cross-functional teams. BRM encourages the formation of cross-functional teams that bring together individuals with diverse skills and expertise. These teams work collaboratively on projects, breaking down the walls between departments and fostering a culture of collective problem-solving. 

Opening the Door to Agility

Organizational siloes, whether born out of hierarchy, disparate technologies and communication channels, departmental rivalries, or other root causes, are formidable barriers to enterprise change. In this era of rapid technological advancement, the need to mitigating these obstacles to progress has never been more urgent.

IT leaders understand this challenge perhaps better than any other business executive as they must work across their organizations in ways few other leaders do. For them, BRM can be an invaluable tool. By aligning objectives through strategic partnerships, promoting communication and transparency, mitigating departmental rivalries, integrating technologies, cultivating a customer-centric approach, and promoting cross-functional teams, BRM provides a holistic framework to address the multifaceted nature of siloes.

In our experience, organizations that embrace BRM unlock their own potential for the increased efficiency, innovation, and adaptability required to succeed in today’s constantly shifting business environment. Breaking down siloes is not just a matter of structural change; it's a cultural shift. BRM facilitates that’s evolution, paving the way for a more interconnected and agile organization.

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