WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 1 [The Nondancers: How Anthropology Can Illuminate Silos]
Summary:
Human beings are naturally organized in the form of closely-knit units that are governed
by a common culture that is shared among them. However, this state is not temporary as
revealed in the Bearn nondancers narrative with the transformation being spontaneous
and seemingly permanent. The conversions lead to the development of clusters that
mainly comprise of the human make up. These clusters are collectively known as silos.
They are prominently explained by the way through which the brain understands
scenarios. “Thus if we visualize numbers as chunks of digits we retain them, but not if
they are a single unbroken series of numbers.” (Tett, 2016). Silos development depends
much on the anthropology of the people in a certain society.
Analysis:
Anthropology is highly imperative in the creation of silos that people often find
themselves engulfed into. This is influenced by the dominant culture and as time passes,
the culture is altered to suit the individuals’ choices. However, this happens in
subdivisions form. This phenomenon can be attributed to how the brain finds it easy to
replicate numbers that are clusters, unlike those that are in a nondescript form. This silo
effect can be positive or negative depending on the extent that shifts in culture causes to
the individuals who are present in a particular society or organization.
What I Have Learned:
Culture is highly impactful in the development of Silos in all facets of human life.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 2 [Octopus Pots: How Silos Crush Innovation]
Summary:
Silos can be massively detrimental to a company’s chances of making progress in regard
to innovation. Sony, before the Venetian Ballroom presentation in 1999, appears focused
and unidirectional in regard to the achievement of the company’s objectives. However,
this is short-lived as later on, the silos that are developed within the institution renders
innovation difficult. Lack of communication leads the company to develop a similar
version of the same device. “But now Sony was unveiling not one, but two different
digital Walkman products, each of which used different proprietary technology.” (Tett,
2016). Such a situation highlights the conflict that is existent within firms as a result of
the clustering that is dominant.
Analysis:
Innovation ought to be the driving force of success in most companies as it provides
yardsticks for measuring the progress that has been made over time. However, when the
silo effect is existent, innovation is hampered and the effects can be massive to the extent
that a company crushes in an inhouse manner. Departments and branches that ought to
work as a unit are rendered as distinct divisions that are in some form of competition with
each seeking to out marvel the other. The result is a sort of confusion, which in the end,
crushes seamless and positive innovation and this is largely impactful to the fortunes of
the company.
What I Have Learned:
The silo effect, if not controlled effectively, can cause significant damage to the
performance of a company through curtailing innovation.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 3 [When Gnomes Go Blind: How Silos Conceal Risks]
Summary:
The silo effect can also be harmful to companies to the extent that they become ignorant
to the apparent risks that are potential threats to success. Often companies garner
reputations over time that describe them even to the outside world. These reputations are
in most cases worthy as they are a result of hard work and the existence of strong
principles that are intended to create a niche in the market. However, this is also harmful
if not well checked as companies can at times ignore the apparent risks as a result of the
overconfidence in the set systems. “In reality, the biggest losers in a financial crisis are
not those who have exposed themselves to major risks with their eyes wide open, but
rather the ones who believed [they had] their affairs well under control.” (Tett, 2016).
This harmful case of the silo effect is explained by the state at which UBS Bank found
itself into when it thought that it was all-powerful in getting things in place only to realize
that the assumption worked to its detriment.
Analysis:
Particularly, the silo effect results in the creation of a form of power subconsciously to an
organization and this is usually a result of effecting tried and tested techniques that are in
most cases successful. When this happens, the organization enters into a comfort zone
and banks on its reputation and culture as a critical tool of realizing success. This
overconfidence brews negligence and with time, it is showcased outwardly by results that
can at times be immensely disastrous.
What I Have Learned: The Silo Effect is not positive in entirety. It leads to
overconfidence that in turn develops to ignorance of critical aspects such as risk
assessment and this exposes the company.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 4 [Russian Dolls: How Silos Create Tunnel Vision]
Summary:
Silos dim the vision of the supposedly brilliant individuals who are key drivers of major
companies causing them to exhibit a behavior that is highly doubtable. They create a
sense of security and this is harmful as it leads to the development of a single vision that
shuts away from some of the other dominant forces whose effects are as important as the
one in question. “it was rather that they had been looking in the wrong places, at the
wrong time.” (Tett, 2016). This blinding effect is as well highly destructive as it was the
case with the London School of Economics. Focusing on one perspective when in reality
the influencing factors are numerous is an aspect that can pose a serious crisis, especially
if the silo effect is not identified early.
Analysis:
Companies ought to be aware of the various aspects that are critical for continued
productivity. Fundamentally, getting a firm to a point where it is highly productive is not
a simple process as it entails undergoing massive tests that only a few are capable of
withstanding. This is also the case for institutions that are not necessarily business-
minded. However, with time, the vision is forgotten as companies and institutions
become enslaved to the reputation causing them to ignore critical areas of concern and
the result is the occurrence of massive losses.
What I Have Learned:
The silo effect also leads to the loss of the company’s vision and mission as focus shrinks
to shun away many of the critical perspectives in favor of a few ones that are seemingly
important than the rest.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 5 [Gun-Toting Geeks: How Individuals Can Silo-Bust Their Lives]
Summary:
Silos profile individuals as parts of some bigger unit that becomes part of the person.
Therefore, describing him/her becomes impossible without the association with the
organization. This is especially common when one is viewed as an expert in a particular
field and seeking a way out is seen as a breakaway from the very self that perfectly
defines his purpose. Coming out and fighting off the categorization on particular grounds
is a bold step that one should undertake lest they find themselves enslaved to a calling
that is unworthy of their time.
Analysis:
The silo effect should be overcome especially in a case where it seeks to categorize an
individual as one direction when in reality, an adventure in other areas can realize other
benefits. When one is an expert in one case, it does not mean that performance in other
fronts is impossible. It could be that the categorization has blocked the individual from
realizing his initial calling and this can be overcome through breaking away from the
norm. this way, the negative effects of the silo effect can be suppressed immensely
leaving out only the positive aspect that is helpful to the individual.
What I Have Learned:
The silo effect can be overcome when the individual seeks to overcome the profiling and
in turn, adopt a new self that will lead to further elaboration of his strengths.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 6 [Re (writing Social Code): How to Keep Silos Fluid]
Summary:
Silos are devastating to the company as it was the case with Sony when
miscommunication between the different segmentations of the firm lead to the
development of competing products that threatened the unity of approaching the market
as a single entity. On that note, some companies are wary of the negative impacts of silos,
and this fuels the development of a culture that encourages an open way of doing things
that is different from the segmented decision making that is predominant in silos. “The
silos and bureaucratic structures that had undermined Sony did not seem to exist inside
Facebook, or not as far as Goldfein could see.” (Tett, 2016). Companies strive to break
off from silos because their effects are massively destructive as they crush the whole
essence of bringing people together to work for a common cause.
Analysis:
The mistakes that were done in Sony resulted from the segmentation between the
employees of the different departments. Such an effect is capable of occurring in any
company and this is why Facebook found it important to set up itself differently. Through
the initial ‘Boot Camp’ training, employees are able to become eased through the
operations of the firm slowly. This cultures learning and also enables the acclimatization
to the new company environment. The silo mentality is also broken through this training
as all the new employees, irrespective of their ranks are encouraged to work as a unit.
What I Have Learned:
In the same manner that it is possible to eliminate the silo effect in individuals,
companies can also achieve similar results when guiding strategies are set up.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 7 [Flipping the Lens: How Doctors Tried Not to Behave Like
Economists]
Summary:
The categorization that is dominant in the business field is also present in other areas
such as medicine. Fundamentally, a medical doctor is tasked with overseeing the
wellbeing of the patients by diagnosis and administration of medications. However, this
is not fundamentally the key essence of medicine. To the patients, a doctor is responsible
for delivering relief from the pain that is caused by a body malfunctioning. “But was this
what sick people really wanted?”. (Tett, 2016). Doctors who are unable to incorporate
this perspective of empathizing with patients are incapable of satisfactorily fulfilling the
demands of the sick.
Analysis:
The silo effect prompts people to behave as robots whose functions are limited to the
small scope that they are called for. For instance, a medical doctor is a specialist whose
cardinal role is to treat patients. However, it is undeniable that this silo effect prevents the
doctor from engaging in other activities that are equally significant in aiding the patient’s
wellbeing. Issues such as empathizing with the patient are not instilled in the doctors and
this creates a silo effect that prevents effective practice.
What I Have Learned:
Professionals can become slaves of silo effects leading to tarnishing of reputations
despite their massive knowhow of the main art of practice.
WRSP 551
Johnathon Stovall
Gillian Tett, The Silo Effect Summary Analysis
Chapter Number 8 [Bucket-Busting: How Breaking Down Silos Can Produce Profits]
Summary:
Silos can be exploited to become profitable for the company if a precise investigation is
conducted in the market to take advantage of the gaps that they create. Silos are not bad
ideas in entirety and some companies such as BlueMountain have in the past used them
to their advantage. “They were also fascinated by silos…” (Tett, 206). Similarly, other
firms can analyze the silos that are existent in the prevailing market and use that
perspective to their advantage in designing strategies that position the company in a
manner that overcomes the challenges of operating in a silo-dominated environment.
Analysis:
Silos should not be viewed as impediments to developments and success for companies.
In situations where their existence is assured, one of the means of overcoming their effect
is by studying their patterns and the gaps that they leave. When they are highly profound,
the institution can take advantage of such a situation and develop measures that exploit
the gaps. Silos have a significant effect on shifting the prices and this affects how the
companies operate. For example in the case of Sony, a competitor who studied the impact
of the company’s destructive silo effect could have massively reaped.
What I Have Learned:
Silos are not harmful in entirety and their existence can be used as a key driver in
companies that are aware of the significance of the gaps that they present.
