Published in
2 min readJan 27, 2018
ZBC#87 [No more Silo] ~ The Silo Effect/サイロ・エフェクト
Today, let me introduce The Silo Effect from Zenport Book Club#87 on Jan27th 2018.
In these days, in order to increase the efficiency, specialization is praised. However, we need to to remember the it leads to Silo effect.
Then, what Silo effect causes for company? and how can we prevent the Silo effect?
Let’s get started.
Summary
- Sony is one of the corporations that is suffered from Silo effect. Under the management of Nobuyuki Idei, the former CEO, Sony reorganized itself into multiple sub-companies. At first, it showed positive impact. However, it caused the negative impact later. Each company only thought about their own benefits, not the all corporations’s benefits and didn’t communicate each other.
- In order not to become Silo company, like Sony and Microsoft, Facebook make culture and system to avoid silo effect, even though their company was still small. One solution is let members to communicate over their divisions. The other is openness. Facebook makes its office openness, most of the rooms are separated by transparent wall, so all of the people can understand what is happening in the company. It prevent people just concentrate on their own divisions.
Discussion
- It describes that to make organization does not have only one answer. The pursuit of efficiency should be one answer for management, but it leads to inflexibility, then leads to non-creativity. As a manager, I need to have a balance.
- In order to avoid the silo effect, we are thinking to make the team where all of the members overlap the positions. We are not separated by division and mixtured each other. By doing that, we will try to adjust the complexity.
Conclusion
Today, I’ve introduced The Silo Effect, which describes the disadvantages of specialization.
Next, let me introduce Money Principle/貨幣論 from Zenport Book Club #88.
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