The silo effect, characterized by limited communication between specialized business departments, has long been a pervasive issue in organizations. Multiple studies highlight the profound impact of silos: a Salesforce study revealed that 70% of customer experience professionals and executives view silo mentality as the biggest obstacle to customer service, and a 2017 Harvard Business Review Analytics Services survey indicates that 67% of collaboration failures are due to silos. This isn’t a new problem. An American Management Association survey from 2002 found that 83% of executives recognize the presence of silos in their companies, with 97% reporting a negative impact on business. These findings emphasize that the silo effect presents a significant challenge that organizations must address to enhance their operations and enhance collaboration.
