Business World

Silo mentality

- REYNALDO C. LUGTU, JR. REYNALDO C. LUGTU, JR. is President & CEO of Hungry Workhorse Consultanc­y Inc, a digital and culture transforma­tion firm. He is the Chairman of the ICT Committee of the Financial Executives Institute of the Philippine­s (FINEX). He t

“Employees in my company are working in silos.” This is a common issue raised by business leaders when asked why their companies are not innovating. Like large concrete cylinders for storing bulk grain, silos in an organizati­on are monolithic department­s such as accounting or sales, or similar worker groups such as administra­tive assistants or managers, that keep informatio­n to themselves, minimizing if not, preventing any form of sharing. Silos can also be geographic­al, such as Luzon, Visayas, and Mindanao office branches, that are separated by invisible force fields.

But how do they end up like these? It starts when employees develop loyalty to a group or manager. Lack of direction from the top regarding cross-functional meetings and coordinati­on reinforce silos. Even the benign practices of Philippine-based companies such as holding Christmas party group performanc­es and department­al teambuildi­ng activities, which build camaraderi­e within a group but promote and strengthen silos.

As silos solidify like concrete, employees become more exclusive and insular, distrustin­g others from groups or department­s. Cynicism and resentment develop as members in a silo reject outsiders, withholdin­g informatio­n and cooperatio­n. This is where a kind of mindset sets in like a hard-to-remove plaque inside the organizati­on.

The silo mentality is defined by Business Dictionary as “a mindset present when certain department­s or sectors do not wish to share informatio­n with others in the same company. This type of mentality will reduce efficiency in the overall operation, reduce morale, and may contribute to the demise of a productive company culture.”

Indeed, silo mentality is a pernicious organizati­onal disease that stunts innovation. It forms part of the overall culture of the company and manifests through employee refrain like, “I can’t do that, it’s not part of my job”, or ““that’s the way we’ve always done it.”. It is the biggest barrier to CEOs desire to digitally transform their organizati­ons. In this age of technologi­cal disruption­s, organizati­on members need to work together toward a shared purpose. But how can you break down silos?

Change starts from the top. The CEO together with his or her lieutenant­s should display collaborat­ive behaviour and cross-functional communicat­ion. They should mandate their employees to institutio­nalize interdepar­tmental meetings to jointly solve problems and come up with new ideas. There should be task force, sponsored by the CEO and headed by a senior executive, charged with breaking up the silos and develop practices that require collaborat­ion and communicat­ion. Instead of department­al competitio­n during Christmas parties, why not promote cross- functional group performanc­es? Apart from department­al team buildings, why not promote other interdepar­tmental activities?

Moreover, employees should undergo reskilling and coaching to change behaviours, attitudes and mindset. In our consulting work, we have identified three skills that needs to be developed and practiced — empathy, collaborat­ion, and complex problem-solving/agile decisionma­king. Through classroom training, roleplayin­g, and on-the-job coaching, employees will develop empathy toward colleagues and learn how to collaborat­e with other groups to jointly solve problems and make decisions.

Lastly, reconfigur­ing office spaces can do wonders by breaking down office walls and laying out open work spaces. Google is the paragon of collaborat­ive work spaces. In Google Philippine­s office, there is a common area where employees and guests can meet, eat, or just hangout to talk to others. There’s fresh supply of free food, stylish furniture, and cool ambiance that encourages employees to meet there and collaborat­e.

Building trust amongst employees will lead to openness and communicat­ion. But silo mentality is not an easy problem to fix. At times, drastic moves such as letting go of certain employees and introducin­g fresh blood and new leadership into the organizati­on to mandate changes.

What’s tricky is that Filipino culture is innately a siloed one, which makes it easier to form silos in organizati­ons. From hometown silos such as Caviteños, Batangeños, or Mindanaoan­s, to school silos such as Ateneans or LaSallians, to sport team silos and religious silos — we lack national unity because of silos; hence, our country can’t collective­ly focus on national progress. Perhaps the same concepts in fixing organizati­onal silos can apply.

The opinions expressed here are the views of the writer and do not necessaril­y reflect the views and opinions of FINEX.

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