What is a “business silo”?
A business silo can also be called an information silo. In either case, a business or information silo is exists when a business system, group, division, or unit is incapable of effectively working with other divisions within a large business organization. These silos might communicate with each other, but the communication is often dysfunctional and laborious. You can think of a business silo as a business function that lacks cross functional communication or collaboration.

The results of a business silo is an inefficient and slow organization that has trouble bringing new products or concepts to market.

What is an example of a business silo?
A classic example is marketing. Within a large organization or business, multiple marketing departments might be duplicating efforts. They are often pulling from similar resources, but not communicating with each other. To make matters worse, these marketing silos will often build up their own resources once again duplicating business functions within a large organization.

What is the impact of a business silos?
The most common impact of a siloed business is overall organizational dysfunction. An organization will move slowly and inefficiently. This can be very costly to an organization and create strategic jeopardy.

An additional impact of business silos is customer confusion. Because the overall organization is behaving like multiple organizations, customer messaging and product overlap can create substantial confusion for customers. For example: If a computer company says, “We’re the low cost leader of quality computers.” and “We create premium products only the wealthy can afford.” This will certainly confuse the customer and they will purchase a more trustworthy and easy to understand product.

Why does this happen?
This often happens due to a lack of communication and understanding. In the case of functional business silos, one department might not have a clear understanding of another group’s roles and responsibilities. They might assume they know, but often this is misunderstood.

For example: A marketing silo may not clearly understand the challenges of engineering. Engineering may not truly appreciate the challenges of marketing. Finance probably doesn’t understand the difficulty of sales and sales may not appreciate accounting. There are many assumptions, but no real appreciation for other departments.

There can be many other reasons for business silos such as geography, product, and organic growth.

How can a business training simulation help reduce business silos?
A business training simulation can help your business silos. A business training simulation can let participants live a day in the life of the other business silo. The simulation participants will grow a real experiential appreciation for the other silo’s jobs.

A business training simulation can help increase cross functional awareness, appreciation and execution. A business training simulation can help employees better understand how the whole company works together. They can better see and experience how each “silo” depends on the other and how working together can benefit all.

A business training simulation enables your employees to live a day in the life of all the divisions within your greater organization. It takes little time, has no risk, and is incredibly rewarding for the participants.

Where can a get more information?
If you’d like more information how a business training simulation can help with your business silos, just fill in the form below and put “Business Silo” as the subject. We’re happy to chat about this. We promise, no pressure. Just chatting.