Technological implications to organisational silos.
Does technology help break down organisational silos or can it make matters worse? There are plenty of arguments to both scenarios and specific examples to prove them.
Things become particularly complex for multidisciplinary organisations. It may be difficult to find a tool that will satisfy different departments.
If, for example, you do implement a few solutions to cater for individual department differences in required data formats, then you are likely to create barriers to effective information sharing and cross functional collaboration. This may cause problems with projects which require a certain degree of collaboration and transparency.
Lack of interoperability between applications, communication breakdowns and conflicts with ownership and sharing of specific data are common issues experienced by large and growing organisations. We also have to be mindful of the fact that such discrepancies (caused by certain technology choices) can escalate to further, bigger issues including the formation of silo mentality and broader company culture implications – negatively impacting your overall business performance.
On the other hand, we do live in a world where “every business is a tech business”. Most companies, large and small, rely on some sort of internal or external software tools to operate. So the question is not whether you should invest in technologies but how can you make better tech decisions? And what are the basic changes that you could implement straight away to avoid expensive mistakes later on?
Here are some of the things we recommend based on our experiences working with various public and private companies over the years:
Think enterprise.
Too often, as companies grow organically, their leaders see no need to put a more advanced structure and strategy in place. Just as often, when they see that things need to change, they realise that they left it a little too late. While they can still change things for the better, it becomes a much more laborious and costly task.
You may think that Enterprise Resource Planning (ERP) is not for you, but those bigger players you think of when you think ‘enterprise’ have put their structures in place well in advance. Even if you simply want to grow to the next level – say from 60 employees to 100 – you won’t be able to do that without an ‘enterprise mindset’ and enterprise decision making strategies.
Enterprise thinking will help you avoid inefficiencies and ensure your growing company works for all your people and departments as one. Well planned ERP systems integrate your core business processes into a single centralised source of truth, mitigating the risks of silo mentality developing in your workplace and setting your business up for success.
Get all the right people around the table.
Smart decision making requires good research and input from all key stakeholders.
More often than not, there is no single solution / application that will satisfy different department needs. Some teams may have much more complex file sharing requirements for example, forcing them to handle their side of the project in different ways, using their own preferred tools. Whether this will take away visibility of their project / business component or simply break down some lines of communication, this can lead to bigger tensions between departments later on. Any misunderstandings can lead to formation of hard feelings and silo mentality in individual teams. So get all your team leads together and map out the big picture before committing to any specific tools.
Map out the big picture.
Together with your key stakeholders look at the big picture for your systems and process needs. Don’t treat your technology initiatives as separate projects. Your broader business goals, operational needs and desired company culture need to be taken into account while making tech decisions.
Implementing different tools in isolation is one of the biggest mistakes organisations make when they are in a rush to get things done and have some budget to cover it. Trust us, it is not worth the cost of inefficiencies later on, and the risk of organisational silos forming.
Even if you have a handful of tools you’ve been using for years and are comfortable with, the ‘big picture rule’ still applies. Instead of just adding another tool that may solve one department’s problem, you should analyse it against your existing set of tools.
We often see how a single chosen solution funnels organisations into specific ecosystems which are limiting in addressing their needs or pursuing new opportunities in the market. An experienced consultancy will be able to recommend the most efficient way forward for your workplace solutions.
It’s always a good idea to include consultants who specialise in integrated solutions early in the process.
Think longer term.
This relates to your enterprise and big picture thinking. It may be very tempting to settle for something that solves an immediate need but is the solution you choose extendable? Can it integrate with a variety of tools you may want to implement when new budget becomes available?
You may not be able to find a tool that will satisfy every requirement straight away but you need to keep your options open and be able to build on it.
If you’re hiring external help, ensure they have proven experience in implementing a range of solutions that can coexist well.
Communicate effectively and efficiently.
It is true that technologies alone cannot lead change. Companies rely on people to make change happen. Effective internal communication strategy is key and staff training is important but is it enough?
From our experience, you have to think beyond ‘training’ and think ‘convenience’ and ‘efficiency’. If someone is asking you [what you consider to be] a simple question, does that mean there is a problem in your process? Achieving efficiencies in your operations can be reduced by simple things, like for example, having a company wiki and / or search functions in your applications that help people find answers to their everyday routine questions easily.
Having the right tools in place that help people do their jobs, boosts employee productivity, confidence and morale. Lack of access to information however, can escalate to bigger problems between individuals and teams as discussed above. More often than not, hard feelings and silo mentality among individuals or departments are fueled simply by misinformation or the lack of information when it’s required.
Lead by example.
It is true that technologies alone cannot lead change. Companies rely on people to make change happen. Effective internal communication strategy is key and staff training is important but is it enough?
From our experience, you have to think beyond ‘training’ and think ‘convenience’ and ‘efficiency’. If someone is asking you [what you consider to be] a simple question, does that mean there is a problem in your process? Achieving efficiencies in your operations can be reduced by simple things, like for example, having a company wiki and / or search functions in your applications that help people find answers to their everyday routine questions easily.
Having the right tools in place that help people do their jobs, boosts employee productivity, confidence and morale. Lack of access to information however, can escalate to bigger problems between individuals and teams as discussed above. More often than not, hard feelings and silo mentality among individuals or departments are fueled simply by misinformation or the lack of information when it’s required.
Break down data silos.
By breaking down data silos, you can gain valuable insights and make better decisions for your business. Avoid ‘data ownership’ and ‘data hoarding’ – implement data governance frameworks, define data ownership, access controls and quality standards. Again, lead by example and promote data transparency to reduce the risk of silos forming or worsening.
In Summary:
While technology can exacerbate organisational silos, it can also help mitigate them. Good flow of communication, effective collaboration, data integration and cross-functional teamwork are possible if your digital strategy is mapped out properly and not in isolation to the rest of the business.
Effective leadership and cultural change must also be addressed when analysing the underlying causes of organisational silos. Fostering employee engagement and a more collaborative and agile organisational culture requires investment and time. Some basic changes in how you approach your decisions and actions from the start, can help you avoid expensive mistakes later on.
