Silos are characterised as environments whereby workers, departments or groups do not wish to, or are unable to share information with others within the same company – an issue that often has a severe impact on corporate culture and causes an inherent loss to business productivity. Traditional businesses revolve around these departmental structures, in part due to rigid company cultures.
The digital economy, however, is a means by which silos can be broken down, with an increase in communication between departments a key factor in keeping businesses united in the pursuit of a common goal. Despite living in a world where we are more connected than ever, businesses are at risk of becoming increasingly fragmented – an increase in interdepartmental communication is therefore essential. The free flow of information brought on by the digital economy will be key to breaking down silos, helping to solve the skills shortage, increase productivity and ensure business success. Within solving this problem is the use of corporate performance management software, where use can see business maintain control over its own digital landscape.
Breaking down silos to increase business efficiencies
Technology has become a key business enabler, allowing both large and small companies to minimise the risk to productivity posed by silos. Many firms thriving in the digital economy are increasing their connectivity by moving away from hierarchical decision-making and moving towards flat structures designed to unite departments – improving interdepartmental communication and bringing management closer to employees. The large number of internal communication systems appearing in recent years, from Facebook Workplace, to Yammer, highlight the need for increased levels of communication within businesses.
This increase in connectivity, bought on through the greater use of technology, means that previously segmented job roles can now become more holistic, and disparate departments now have the means to communicate effectively. Departments and employees thus become less focussed on individual progression and merit, as seen with traditional silo-based organisations, instead focussing on driving the business forward as one unit.
With a significant skills shortage currently affecting the UK, companies must look to break down silos in order to increase efficiencies and maximise their return on investment from existing resources. Departmental silos, by their nature, hinder both HR and finance departments by driving them apart. HR, finance and IT professionals must take the lead in breaking down business silos by capitalising on opportunities the digital economy provides.
To learn more about how placing technology at the core of a business can help firms alleviate the digital skills shortage, discover the latest Talentia whitepaper: Technology at the Core. Find out more about our CPM software and HCM software.