![]() Luhmann, it can be postulated: Silo mentality helps to reduce complexityĪs a result, even with organizational structures that are actually open, flexible, and innovative, new silos continue to develop. Self-contained organizational units are better suited to deal with volatility, ambiguity and uncertainty.įollowing the probably best known term from the sociological system theory of N. These structures made growth and prosperity possible in the last century, and they continue to give companies and employees security today. Silos exist because division of labor, specialization and expertise require structures. Get rid of the business-damaging silosīut it is not so easy to eliminate them. Therefore, the call is getting stronger and stronger. It jeopardizes growth and sometimes even the very existence of a company.Ī look at companies, literature or the web reveals countless other examples of departmental egoism, closed departmental boundaries and compartmentalization with negative effects. In small companies, the silo mentality of individual managers not only inhibits digital development, but also customer acquisition or business field development. In medium-sized companies, many digital transformation projects get stuck in the marketing department or IT because the other department or sales/field service or someone else is blocking them. This means that duplication of effort, waste of resources and a suboptimal result are inevitable. At another, branding and digital strategies are developed in parallel without coordination, both globally and in each market. When consultants discuss transformation, they often complain about silo mentality and its negative consequences: At one pharmaceutical giant, for example, hundreds of millions of euros are at risk of being sunk because each division is planning IT renewal independently of the others. Silos are bad for business, but they also help in uncertain times Drivers for a world with fewer barriers can be technical solutions, reorganization and cultural change, because only with a trusting collaboration culture can the challenges of a crisis-ridden and uncertain future be overcome. ![]() Silo thinking is the big obstacle to digital transformation and corporate success.
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