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New Research: The Corporate Silo as Impenetrable as Ever

September 24th, 2008 @ 9:19 am

7 Comments

Categories: Innovation, Management

Tags: Silo, Social Networking, E-mail, Servers, Online Communications, Marketing, Advertising & Promotion, Hardware, Sean Silverthorne

You’d think that the Harvard Business School research team studying 100 million e-mails and 60 million electronic calendar entries of 30,000 workers at a very large company would find lots of fruitful cross-fertilization going on.

And they did. But most of the cross talk was within business units or among peers. Cross-company contact? Not so much.

“We were surprised by how little interaction occurs across three major boundaries: the strategic business unit, the organizational function, and the geographic office location,” says HBS professor Toby Stuart in an interview with HBS Working Knowledge.

Wasn’t modern digital technology supposed to usher in an unparalleled era of corporate communication, collaboration, and productivity? Where are all those weak-tied, silo-busting social networks? The authors don’t attempt in this study to explain why companies are so hardened in their silos, but their exploration  into the “soft wiring” of the modern multinational corporation is fascinating none the less.

To The Servers!

Stuart suggests that executives audit their own company information flows by doing what the research team did: analyze server logs. Says he:

“It can identify the key personnel, functions, divisions, and so forth that bridge the islands of interaction in the firm. It uncovers pairs of organizational units that fail to interact in a meaningful way, or isolated units that are not integrated into the social fabric of the broader organization. And it can illustrate whether lateral coordinating mechanisms put into place by senior management are taking hold in the organization.”

How is the cross talk in your work environment? Have you broken down the barriers? Or is the silo alive and well?

 
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  •  
    1

    rodman_arabi

    09/24/08 | Report as spam

    RE: New Research: The Corporate Silo as Impenetrable as Ever

    The main use of email is to coordinate projects with colleagues and the main use of calendars are to remind us of the milestones and deadlines. So there's no wonder most of emails and reminders are related to things within one's own function.

  •  
    2

    pt_boss@...

    09/25/08 | Report as spam

    RE: New Research: The Corporate Silo as Impenetrable as Ever

    Although I agree in principle with rodman_arabi regarding the coordination of projects and milestones in a smaller group, when considering the number of organizations trying to see value chain propositions and connecting the dots, this suggests that projects might be being done in a more siloed fashion than they could be. Perhaps the researchers did cast their nets too wide however without looking at which kinds of people communicated across boundaries and why.

    I would argue that there are many individuals whose responsibilities are to their functional area and unlikely to cross boundaries because of that. Distinguishing between those central function delivery staff and boundaries seems more in line with assessing real cross pollination and cohesiveness.

  •  
    3

    JannaRaye

    09/25/08 | Report as spam

    The Corporate Silo as Impenetrable as Ever

    No technology will change a cultural behavior pattern
    born of top-down hierarchy. The internal competition is
    too great in such organizations, where the perception is
    that limited opportunities for advancement are available
    and where managers are promoted for their ability to
    outperform others. Cooperation and collaboration require
    cultural shifts that produce a different kind of situational
    ethics and place the goals and objectives of the
    organization ahead of personal agendas.

  •  
    4

    Joe E S

    09/26/08 | Report as spam

    RE: New Research: The Corporate Silo as Impenetrable as Ever

    E-mail is not the place to initiate cross organizational communication. Establish internal intranet information and knowledge sharing sites, such as Sharepoint, for specific issues, inquiries and knowledge sharing by all departments. Some of these can be open blog sites about best practices sharing across operations. Then you can continue it thorugh e-mail when specific relationships have established a dialogue. -Joe S.

  •  
    5

    DerekIrvine

    09/26/08 | Report as spam

    Breakdown the barriers with a "thank you"

    We've seen these silos in place for generations. The most effective way we've found to break them down is with a simple thank -- strategic employee recognition programs that allow anyone in the organization to thank anyone else for their help, insights, above-and-beyond efforts, etc. Did a subject matter expert help with your project, but he's based in another country? Thank him anyway! Did you work on a team drawing from multiple offices to achieve a strategic goal? Thank everyone equitably. Recognize people when they go above and beyond and see them want to repeat the tasks. We've done this across multiple regions, divisions and even continents. Fun video clip explaining this here: http://www.youtube.com/watch?v=KFplP0ZNzjQ.

  •  
    6

    mzuza

    09/28/08 | Report as spam

    RE: New Research: The Corporate Silo as Impenetrable as Ever

    I would back the workds of Joe E S and Derek Irvine. Collaboration requires active knowledge networks to ensure that solutions are focused on real problems, not perceived problems and that it works end-to-end. Making the collaboration open (via online open source tools) is a great way to engage a wider audience. But you need a wide program to support the contributors for it to be successful. Email will never be the answer.

  •  
    7

    Prime Factor

    10/03/08 | Report as spam

    RE: New Research: The Corporate Silo as Impenetrable as Ever

    I think JannaRaye is closer to the answer. You cannot solve an essentially social problem with yet another technocratic solution. Technology is not the answer to this question. It requires several changes throughout the organization.

    1. At the top - the introduction of governance and collaborative decision-making.

    2. With the organization structure - it needs to become flatter and based around groups of people as opposed to corporate divisions.

    3. With teams, the correct mental models and shared visions need to be enabled to support interdepartmental interaction.

    4. At the individual level, people need to have the environment available that encourages interdepartmental interaction.

    - They need to be motivated and to clearly see the benefits, both from the team and personal points of view.
    - This can be achieved by clarifying the team's assumptions and introducing new mental models that support interdepartmental interaction.
    - Individuals should use personal mastery to close gaps in their current mental models regarding interdepartmental interaction.
    - Managers must support interdepartmental interaction and time must be factored in to working plans to account for it.

    Until these changes take place I'm afraid that any amount of technology isn't going to help. That's why many business leaders are starting to question office automation in terms of collaboration effectiveness. It's all about people!

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