Organization silos occur when employees identify more with their group than with the company. When employees operate in silos they tend to keep information within their work group, distrust other groups, and make decisions without regard for other groups. Silos negatively affect efficiencies, collaboration, communication and they can create strong sub-cultures that work against company goals by hampering the cross-functional processes that drive value.
When a company has silos, it is usually a sign of weak teamwork, trust, and collaboration at the top. So the best way to avoid silos from forming, and to eliminate them when they do form is to focus on two priorities:
First, you have to build a strong team at the top. It’s not enough for an executive to build strong relationships with individuals, they must be organized into a productive team.
Second, make sure that all employees understand the overall strategic context of the organization including the future vision, current challenge, and leadership goals. All employees must understand AND buy-in to the leader’s objectives.