Thursday, September 19, 2013

Barrier: Organizational Silos

The company’s Pipeline driven by siloed organizations, often with the current, dominant business winning all the resource debates.
Symptoms are:

  • Market needs do not align with organization resulting in missing the next wave of change in the market(s). Each silo is looking out for itself.
  • Incremental opportunities are usually the result since the full power of the company is never optimized for any given initiative. 

In Ballmer’s 2005 reorganization, his thought
he was simplifying the organization to aid decision making which may have happened within the silos but did not optimize the performance of the company:

However, attacking this problem is not as easy as it sounds. There is a critical balance –as in almost everything  leaders faces – between coordinating efforts as a one company against accountability for the parts:

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