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A SILO IS A STRUCTURE FOR STORING bulk materials. When applied to orga- nizations, the term means something quite different.
Company silos refer to functional organizations that do not communi- cate information horizontally with other departments. Information typically flows upward to the top levels of manage- ment, where executives use it to influence management decisions. Most organiza- tions plagued by silos tend to perform poorly as most managers focus inward rather than on the customer, market and competition. Artificial barriers prevent the organization from reacting quickly to market changes. Competitors run circles around these types of companies, espe- cially in fast-paced, dynamic markets.
Managers create silos out of a lack of trust of their colleagues and the belief that they only win if someone loses. Experience with midsized companies indicates that this type of behavior allows the owner/ chief executive to control nearly everything that happens but...