On a farm, silos are a valuable structure for
storing materials and protecting them from external threats. Silos can also exist in business
families. However, in a business family, silos are psychological and, at times,
physical barriers used to store power and isolate something from the rest of
the organization. Silos often are simply focusing on one’s self to the
detriment of the family, the business, and a collaborative environment. It could be in the context of multiple
business divisions, or separate locations, or distinctly defined tasks that
results in isolation. These silos
in a business family can have a number of detrimental consequences, including
driving wedges between individuals, minimizing communication, and preventing
collaboration.
There are no clear paths for the construction of
these silos, nor are they built overnight. Silos don’t necessarily develop
intentionally or from malicious intent. Operating in silos often happens
gradually over time and can lead to individuals operating their own pieces of
the business without input or collaboration with the rest of the business. Sometimes, silos are a mechanism to
avoid difficult conversations or address difficult relationship issues. They
take shape over time and can result in mistrust and isolation.
Recognizing silos in the business family
requires an understanding of what is happening in the short term and the long
term. Redundancy is one sign that
you may have a silo problem. The redundancy of work, of decisions, of tasks, of
discussions and of meetings might be a sign of silos. Another sign is
difficulty in reaching a family member with needed information or knowledge –
or just not understanding or knowing what someone else does. Another sign is simply realizing that
individuals are operating on their own without collaboration or input from the
rest of the organization.
How do you break down silos? How do you keep silos
from becoming fortresses?
First, recognize and admit that silos exist. You can’t begin addressing how to eliminate them until you admit they are there. Then, begin exploring why the silos developed in the first place. Revisit the business family’s core values and realize that these core values are what will keep the family together and help eliminate the silos. In addition, commit to communicating with each other, and commit to open and honest evaluation as a family.
Keep silos from becoming fortresses. Appreciate
the contributions of others. Do
the hard work of communicating, and provide grace, love, and forgiveness to
each other on the journey of being a business family.
SKM Associates
advising and supporting Families in Business as they build their legacy
Contact SKM Associates
Email: skmoyer@comcast.net
Phone: 215.256.5997