The Silo Effect

Book review

The Silo Effect

by Gillian Tett

published by Abacus


Reading time: 2 mins

“We need specialist, expert teams to function in a complex world.  But we also need to have a joined-up, flexible vision of life.”

The author

Gillian Tett is the US Managing Editor of The Financial Times.  Originally from the UK, she transferred to the FT’s New York office shortly after the financial crash.  Tett has a background in social anthropology which she uses to good effect in the book.

In a nutshell

The Silo Effect (TSE) examines the tendency of most (if not all) large organisations to divide into ‘silos’, resulting in poor internal communications and often an unwillingness to share knowledge between teams and departments.  The book challenges the reader to consider the implications of silos and some possible solutions.

A recurring theme is the “insider-outsider” perspective, derived from social anthropology.  It emphasises the ability of outsiders to see these silos or fault lines within closed groups and organisations, once privileged access has been gained.

Scope and scale

As an accomplished journalist, Tett uses both interviews and research to study the impact of silos on a wide range of industries and organisational types.  There are many examples from the financial sector and its regulatory bodies, particularly in relation to the 2008 crash, but she also uses case studies from Sony, Cleveland Clinic, Chicago Police Department, Facebook and Microsoft.

Author: Gillian Tett

Writing style

Distinctly journalistic, rather than academic, Tett’s style is accessible to a wide readership, not merely those familiar with her work in the FT.

Likes

The Silo Effect offers a strong central argument, examined from multiple angles.

Anyone with experience of working within (or studying at) large organisations will understand the challenge of departmentalisation and internal boundaries.

Unlike many business books, Tett doesn’t use excessive repetition or padding.

Her example of how the Chicago Police Dept analysed multiple data sources in order to derive insights and ‘predict’ future crimes could be used as an example of how AI will probably transform the performance of many data-rich institutions (although Tett doesn’t make specific reference to AI.)

The book offered a few practical (though already well-known) ideas for silo-busting, including encouraging internal staff networking, rewarding collaborative behaviour and periodically reviewing organisational taxonomies.

Dislikes

A chapter on the promise of artificial intelligence would have greatly improved the ability of the book to support or catalyse change.

I found TSE to be too journalistic, being heavily dependent upon interview transcripts.  A little more academic research and rigour would have helped.  For example, some reference to the decades of university research into communications theory and organisational theory would have added some gravitas.

The curse of too many business books is their length, and at 315 pages this was arguably a little too long for the depth of content.

Implications for government and the state

State institutions, as we know only too well, are not immune from the silo effect.  They could even be the worst offenders.  The defensive, self-interested motives of many departmental bodies, which severely hinders information flows between them, undermines the quest for efficient government in the national interest.

Tett’s book encourages creative thinking in the quest for better ways of doing things, so perhaps TSE should be required reading for all senior civil servants.

The book could have mentioned the earth-shattering impact which AI will have on public services once the barriers between data silos have been successfully broken down.

Discussion points

How can organisations identify their own structural inadequacies, without the benefit of helpful insider-outsiders?

Should re-structuring be implemented using a ‘big bang’ approach or incremental adjustments?

Will the drive to merge data into large repositories result in the emergence of new, silo-free organisational forms?

Who will appreciate reading this book?

Employees within large organisations, especially managers, seeking to improve internal efficiencies.

Anyone seeking new or alternative explanations for the 2008 financial crash.

This is not a deeply theoretical or academic work, but students of business and organisational theory will enjoy the read, as will those interested in the application of social anthropology to real-world problems.

Technology professionals looking for external evidence to justify the introduction of AI may be able to draw upon some of the helpful examples of silo-bound organisations reported by Tett.

Who will not appreciate this book?

It’s probably fair to say that this book will only appeal to general readers with a fascination for large organisations (in other words, people who work within them).

TSE’s focus is neither social anthropology, nor economics, nor business psychology, nor a history of the financial crash.  A reader fascinated by these perspectives will be disappointed.  However, for a closer look at the financial crash, one might wish to read Tett’s 2010 book, Fool’s Gold.

Overall impressions

With a strong central theme and content provoking both thought and action, this is an imperfect, but recommended read.

Writer: PJ Moar of Moar Partnerships
Email: p.moar@moar.com
Twitter: @MoarPart