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Paperback
First published November 11, 2014
"The Silo Effect" is about how silos in organizations affect how companies function, and illustrates how silos can expose companies to unnecessary risk.
The author, Gillian Tett, holds a doctorate in anthropology, and uses this background to understand why silos arise and what they mean to organizations.
One of the examples in the book is Sony, which was an almost unparalleled innovation hub. The company was organized into separate business units where each of the units was only responsible for itself and its own. Tett uses the launch of the digital walkman to illustrate how things can go awry when organisations succumb to air tight silos.
At the launch of their first digital music players, they first launched a music player the size of a pack of chewing gum ("Memory Stick Walkman"). At the same event, they also launched a music player called "Vaio MusicClip"; this the size of a slightly thick pen. To top it all off, they also launched a "Network Walkman", the size of a dictaphone.
Why Sony unveiled not one, but two different digital Walkman devices in 1999 was because it was completely fragmented: different departments of the giant Sony empire had each developed their own — different — digital music devices, with proprietary technology, known as ATRAAC3, that was not widely compatible. None of these departments, or silos, was able to agree on a single product approach, or even communicate with each other to swap ideas, or agree on a joint strategy.
Two Sony Walkman products and one Sony Vaio product that all had to compete for the same market, and which were not compatible with each other.
This is where Tett's anthropologist background comes in; she tests the claim that few (or none) of Sony's employees had even understood that 1) they were part of a rigid silo structure and 2) the consequences of such an organization.
Most of the staff who worked at Sony had never thought of the issue of silos before. They had generally grown up inside Sony, and it was the only corporate world they had ever known. To them, that the company was fragmented was unremarkable: it was a pattern so deeply ingrained that they took it for granted,
The author provides some advice and tips on how to break down silos, but also takes care to mention that “we cannot live without silos in the modern world. But we can avoid succumbing to the problems they pose. ”
There was one quote in particular that struck a chord with me, which I know several organizations could have benefited from adopting:
"One technique we teach managers here is that we insist that people use names — real names — to talk about each other," Schrep said. “If we ever catch anyone using a depersonalized moniker then you interrupt them and stop them. We never let people refer to anyone else as, say, ‘those idiots in team six’ or “‘ those stupid marketing guys, ’since it is one sign of dehumanizing a group. When you do not know who people are and depersonalize groups, then you get into problems. ”
The book is roughly 300 pages, and is prone to repetitions. The first chapter is for those who are particularly interested, where the author explains Pierre Bourdieu's theories of cultural reproduction and habitus in large organizations. The stories in the book are entertaining and make it feel easy to read. I'm a little unsure of exactly how much professional benefit it provides, beyond inspiring action and pointing out the risks of waterproof bulkheads and silos in organisations.
The book is primarily based on anecdotal evidence and is lacking in terms of scientific grounding, although its references are included for those interested.