To Silo or Not to Silo?

Walls turned sideways are bridges. — Angela Davis

Let me take you to a recent dinner with an old friend of mine. David (not his real name), a sharp-minded operations manager at a mid-sized tech firm, was recounting a curious problem. His company was struggling with inter-departmental collaboration—or rather, the lack of it.

"We’ve become a collection of silos," he admitted, stabbing his fork into a slice of potato. "Our sales team doesn’t talk to our product team. Marketing is off in its own world, and operations…well, we’re stuck putting out fires instead of building bridges."

This got me thinking: when it comes to management, should we silo or shouldn’t we?

Specialization Wins the Day

Silos aren’t always a bad thing. In fact, they can foster expertise and efficiency. Imagine a Formula 1 pit crew. Each member is hyper-specialized—one person handles the tires, another the fuel, someone else the aerodynamics. No one would suggest cross-training the tire specialist to handle the engine tuning. In contexts where precision and speed are crucial, silos shine.

Another example? Amazon’s 'two-pizza teams.' Jeff Bezos famously championed small, independent teams within the company. Each team was encouraged to operate autonomously, and as long as two pizzas could feed the group, it was deemed manageable. This structure allowed for agility and innovation in different business areas, from AWS to Alexa.

Missing the Bigger Picture

But silos can backfire spectacularly. Let’s turn to Boeing. In the development of the 737 MAX, a lack of cross-departmental communication became a fatal flaw. Engineering, production, and management were so isolated from each other that critical safety issues were overlooked. The result? A catastrophic loss of trust, reputation, and, most tragically, human lives.

In a less dramatic example, think about Kodak. Though their R&D team developed the first digital camera, they couldn’t bridge the gap between innovation and business strategy. Marketing and management were too focused on protecting their film business, and the company missed the digital revolution entirely.

The Middle Ground

So, what’s the solution? Total elimination of silos isn’t practical—nor is it desirable. Instead, companies need to find a balance: allowing specialization while promoting collaboration.

Consider Tesla. While each department has clear roles—battery innovation, software development, and vehicle design—they work under a unified vision: to accelerate the world's transition to sustainable energy. Tesla’s leadership ensures that these teams don’t just coexist but actively share insights and align goals.

Another great example is Airbnb. When Airbnb’s growth stalled in 2017, the company realized its teams weren’t aligned. They introduced cross-functional "pods," where engineers, designers, and marketers worked together on specific projects. The results were spectacular—faster product rollouts and a reinvigorated growth trajectory.

Lessons for Managers

David’s situation at dinner was not unique, but his realization was the first step toward change. The next step? Creating structures that allow for both autonomy and collaboration. Here’s what I suggested to him:

1. Shared Goals: Define clear company-wide objectives that every team can rally behind.

2. Cross-Functional Teams: Encourage short-term projects that mix departments to tackle specific challenges.

3. Transparent Communication: Invest in tools and processes that break down barriers—whether through shared dashboards or regular inter-departmental meetings.

   
   

To Sum Up…

The answer, like most management dilemmas, isn’t black or white. Silos can drive efficiency but also create blind spots. The challenge for managers is to recognize when to let teams specialize and when to connect the dots.

As for David? A few weeks later, he texted me: “We’re starting cross-team workshops next month. Fingers crossed!”

So, to silo or not to silo? Maybe the real question is: how do we make our silos work together?