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Introduction
OKRs vs departmental conflict.
Here in Taiwan, we often encounter companies dealing with cross departmental conflict, clashing about responsibilities of work, or finger-pointing when problems occur. It’s a very uncomfortable, simmering problem in organizations.These conflicts are in large part due to the “Silo” effect in companies.
From Objectives and Key Results by Niven and Lamorte, it states,
“We’re all well aware of the deleterious effects calcified silos can have on a company’s performance.”
Why should leaders care? Because Silos effect, efficiency, innovation, staff engagement and even profit numbers.
OKR or Objectives and Key Results is a management framework that focuses on common goals and good working culture to mitigate the effects of the “Silo”.
What is the Silo effect?
Silos are a consequence of the organizational chart, which describes the hierarchy of a company, in effect, the cascading authority.
The CEO at the top will exhibit leadership and control for the entire company.
The second level will exhibit the same control from those points on down.
However, there is no authority across the horizontal plane. This is where conflict from silos arise.
Each departmental leader will exhibit their own styles of leadership, cadence and working styles. It naturally devolves into a “my department” and “their department” situation – the lines are drawn, isolation ensues, and the barriers of “Silos” are established.
A typical example is when a product does not meet sales expectations – whose fault is it? RD (bugs?), QA (didn’t find bugs?), Ops (production problems?), Sales (lack of effort?).
How do you dissolve these barriers?
Breaking up Silos with OKR Goals
If you look at an OKR chart and its cascading items, it may look like the same hierarchy of authority, but it’s not. It is a “hierarchy of goals”.
An OKR team will be made up of “Cross Functional Units” from any number of departments. The target of an OKR goal naturally brings teams and individuals together for a common cause.
Breaking up Silos with OKR Transparency
OKRs are transparent – all OKRs and their progress are recorded and updated on a public forum – This means anyone can see individual and team information further mitigating the Silo effect.
Breaking up Silos with an OKR culture.
Culture in companies form when people exhibit similar patterns of working behavior (hopefully good). It provides some consistency and order. When you have no culture or vastly different management cultures, there is a tendency for conflict or even chaos.
OKR provides concepts, strategies and disciplines that establish a general framework, while promoting team and individual autonomy through bottom-up, and lateral communications, with inclusivity, feedback and recognition.
A well-defined culture will also break down the barriers of Silos.
Conclusion – Dissolving Silos with Goals, Communications and Collaboration
Silos exacerbate departmental conflict, an uncomfortable situation that unfortunately occurs too often in Taiwan Tech companies.
In a report by the “Roland Berger” company, it states,
“In fact, nearly 80% of surveyed respondents report ‘strongly pronounced’ silos that negatively impact their company’s costs, innovation potential, culture, and profitability.”
OKRs are a goal-oriented management system, whose focus is company-wins through cross departmental collaboration focused on common goals.
It dissolves silos by establishing company culture and a management framework that gives direction and purpose to everyone, from the CEO down to the front-line staff.
References
Roland Berger | Breaking “bad” silos starts with executive and employee buy-in | Andreas Stocker | Sept 1 2022
Objectives and Key Results | Driving Focus, Alignment and Engagement with OKRs| Paul Niven & Ben LaMorte| Copyright 2016
Look who’s using OKRs.
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