Are You Suffering from a Silo Mentality?

Procurement has been called one of the organisation’s most essential functions, and there’s no doubt that we can make a lasting impact. At the same time, we are not above criticism: some commentators say we need a new operating model and that our processes are in desperate need of an overhaul. But with all of this commentary on who we are, what we are, and what we should be doing, are we forgetting about everyone else? 

Specifically, are we forgetting that some of the most important stakeholders might not be our manager or the CPO, or even our suppliers, but our colleagues in other departments?  

Interdepartmental relationships (or the lack of them), and the working silos that they create, are the bane of most organisations, but they are very common: Instride reports that 83% of companies report working in silos. 

So, the big question is: what if the problem, when it comes to silos, is actually you? Here’s a quick guide to what silo mentality is, its impacts, and most importantly, what you can do to overcome it.

Do You Have a Silo Mentality?

Even if you’re relatively new to the workforce, you’ve probably heard of the term silos. But what does it actually mean? 

In a nutshell, silos form when a team (procurement or otherwise) operates independently of other teams, without collaborating or communicating (or at the very least, without collaborating or communicating as much as they should). This lack of communication can mean that you’re working on something that might impact (or might need input from) someone else, but you’re often unaware of this, or choose to ignore it. 

A silo mentality can also manifest as groups competing, for example, finance versus procurement, or perhaps legal versus procurement. In this scenario, procurement may compete or withhold information, which can create an ‘us versus them’ mentality. 

The Signs of a Silo

Have you ever caught yourself thinking, saying or doing something like keeping information to yourself? Perhaps thinking it’s better if no other department sees or hears about it? Or perhaps you’ve simply been so busy, you’ve thought it easier to not communicate what you’re doing? If you’re guilty of any of this, you may have a silo mentality. 

If you’re starting to feel worried, you shouldn’t worry (or at least, you shouldn’t worry that much). 

There are many reasons for silos, and they are very common, especially in large organisations, where it can be difficult to communicate, where there are culture issues (especially if your organisation prioritises competition over collaboration), or where there are a lack of incentives to collaborate. 

Nonetheless, if you personally have a silo mentality, you’re undoubtedly contributing to siloing your procurement department.

The Impact of Silos

Let’s be honest, sometimes it can feel easier to simply be your own procurement silo. If you don’t tell them (read: the other departments), they can’t find a problem with it, right? 

Unfortunately though, that is really not the attitude that you should be taking. 

Working in silos can be lead to a number of issues, including: 

• Reduced productivity: When everyone is so busy in procurement, there’s nothing more frustrating than not communicating with another department, then doing so at the last minute and having to change tact. Silos reduce productivity, and for this reason, collaborating is always the key, even if it initially feels slower. 
• Lowered morale: Ultimately, competing with other departments and withholding information make daily tasks exhausting and demoralising. It might feel like a bit of fun, but it certainly isn’t. 
• Loss of cognitive diversity: It may not feel this way, but a diversity of perspectives is important. In siloed environments, people are less likely to raise objections and issues (even within your procurement team), because they lack perspective, which impacts your team’s ability to innovate. 
• Poor customer experience: Silos can lead to mistakes that negatively affect customer interactions and product quality. Any procurement professional knows this: ultimately, the input of, for example, the product team is vital for optimal end results.

Overcoming a Silo Mentality

If you’ve working in a silo mentality, you’re not alone. But you can change, and your procurement team can change, too, if they are contributing to the siloed behaviour. Here’s how:

Create a shared learning vision

Culture change can start with one individual. So, for your procurement team, do what you can to encourage curiosity between departments. Whenever you can, ask your team members how your work impacts others (you could even regularly raise this as something to regularly check in meetings). 

Do what you can to get your team invested in learning about others. Remember: breaking down barriers starts with motivation to do so. 

Encourage cross-team knowledge sharing

How could you better and more regularly communicate with, for example, the product team? Or the finance team? How would they like to be communicated with and what tools do you have available to communicate with them? 

When it comes to cross-departmental options for collaboration, the sky’s the limit. Perhaps you could do something as simple as invite a representative from another team to do a ‘day in the life’ presentation? Or you could hold a lunch-and-learn? 

Create connections in whatever way you can, with a focus on learning, but also on creating impactful relationships. 

And whatever you do, ensure that it becomes part of an ongoing effort. 

It takes an organisation of people to work in silos, yet just one person to start breaking them down. What have you done in the past to break down silos? Has it worked? Why or why not? Let us know in the comments below.