Is Your Company Working in Silos? That’s a Problem and Here’s Why
Is your company working in silos? If so, your risk management will be impacted. Here’s how to tell.
It’s so common within organisations it’s almost a running joke, but how many times have you found yourself saying XYZ department has their own agenda and they just don’t understand us? If it’s something you utter often, you’re not alone – research shows that over 40% of employees don’t feel supported by those around them because they believe different departments always act in their own interests. Note that this happens on both a department and individual level – most organisations have no shortage of backstabbers (unfortunately) or downright psychos (even more unfortunately!).
Given the abundance of workplace communication tools now available, many assume that organisations are managing poor communication and silos better than they have in the past, yet in many ways, this isn’t the case. But is it really a problem if the work still gets done?
For many reasons, it is, and it can be especially problematic for your risk management, so much so that breaking down organisational barriers is one of the big supply chain and procurement ideas we think will change everything in 2021. Here’s how to know if your organisation is really working in silos, and the risks if this is the case.
Is my organisation siloed?
Is your procurement team working in a silo? If so, you may not want to – or you may simply not have the time or the means – to share information with other departments. To some degree, silos are unavoidable in large organisations because it is impractical to collaborate on absolutely everything. But if your business is experiencing any of the following, your silos have become a liability:
- Poor customer experiences: It’s fine for procurement and the product team to disagree, but if this is affecting the end customer, you may have a problem. For example, if the product team is insisting on components or pricing that are affecting the quality of the product, then it’s time to address the silo once and for all.
- Not knowing anyone outside your team: Love your procurement buddies? That’s great, but if you don’t know the names or understand the roles of anyone outside your team, you could well be working in a silo. There’s almost no procurement or supply chain role that should require so little interaction with other functions that you don’t at least know a few people outside of your own team.
- Us versus them: Naturally, different departments will care more about different things. But if you’re constantly finding yourself feeling as if it’s ‘us versus them,’ you may be working in an ineffective silo.
- Disengagement at work: Although there can be many reasons why you might feel disengaged at work, working in a silo can be one of them. If you constantly feel like you’re battling other departments and can’t get anything done, a silo may be the cause.
- Repeating tasks: Have you ever gone to do something, only to realise that legal or finance already did it? One of the most frustrating consequences of working in silos is that tasks get repeated and repeated, wasting precious time and resources.
Silos and risk management – a disaster waiting to happen?
From a communication, collaboration and general efficiency perspective, working in silos can be deeply problematic for all organisations. But nowhere are these problems felt as acutely as they are when managing risk.
Managing risks in a siloed way can lead to multiple issues including, but not limited to, creating gaps in the analysis of risk, a poor process to aggregate risks, duplication of risk management effort, and an inability to mitigate risks altogether. Given the extremely complex supply chain environment at the moment (and likely, going forward), is poor risk management really something any of us can afford?
It isn’t, but there are a number of things you can do to break down silos and avoid it. Discover what they are, as well as many other game-changing ideas, in our compelling whitepaper 100 Big Ideas for 2021.
