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Small Business Silos: the Chief Troublemaker Asks 'Does Your Corporate Underground Match Your Company’s Size and Needs?'

by Jill Foster on August 18, 2009

I was working with a prospect recently and lamenting to my team that the organization felt like a bunch of stovepipes, with the VPs competing for resources and influence.

I said something along the lines of “Arrgh, this organization is too small to be so silo’d!”

Then it hit me:
The company had gone through a fairly large downsizing recently. The corporate culture was one I was more likely to find in a much larger organization because the culture had not adjusted to the new realities of the smaller organization! Ick.

Then I realized the opposite can happen as well.
As an organization grows, the culture, communication channels and corporate underground may be more appropriate for a small company, not the realities of a larger one. In fact, it’s happened at Matrix Group, although we’re certainly not large (under 50 staff) and our growth has been slow and steady. I used to rely on word of mouth to communicate with staff about all kinds of things. I would chat with a few folks, who would pass along the news. I would also hold “town meetings” and invite anyone who was available.

When informal communications become less effective
Turns out that when we hit the magic 40-staff number, my informal communications style didn’t work as well anymore. I now have to over-communicate, send out lots of all staff e-mails, direct the Directors and Project Managers to reiterate news and decisions, and hold multiple meetings to get feedback.

Guess what?

I still get complaints every now and then from staff who feel they weren’t consulted or didn’t know a specific decision was made.

I’ve realized something really important as well.
The corporate underground and communications channels always lag behind and must be coaxed and directed to meet the needs and realities of the current organization.

And just because I say I have an open door policy doesn’t mean people believe me (even though it’s true!)

[Image Open Door by Hagit, Creative Commons]

So these days, my communications mantras include:

  • Assume imperfect communication between staff.
  • Send out regular e-mails about the most important things even when I think everyone already has the information.
  • Use staff meetings as a means for disseminating news, decisions, policies, new technologies, cool projects.
  • Rely on the Directors and Project Managers to reinforce the communications.
  • Post as much information as possible to the intranet.
  • Solicit feedback directly, especially from people I’m not hearing from.

How about you? How is your company’s underground working? Does it fit the size and needs of your current organization?

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Founder/CEO and self-proclaimed Chief Troublemaker of Matrix Group International Joanna Pineda is a Women Grow Business enthusiast. She is known for her visionary big-picture thinking and drive for excellence. Combining her broad liberal arts background and passion for technology, she started Matrix Group in 1999, today a leading interactive agency. As a trusted advisor, Joanna inspires and motivates her clients and employees alike to simply, “be better” with her mantra being: Do or Do Not. There is no try!

Thanks Joanna Pineda for sharing with Women Grow Business from The Matrix Files.

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Thanks so much for these tips. I've seen both - I was in a small firm that did CRM and they had incredibly difficult to bridge silos for a company for company of 60 people. Their silos were worse that the big GSE I had worked for. Now I'm with a small company that is going through the adjustment into bigger company and I appreciate your example of being flexible enough to realize the need to adjust and then successfully make the adjustment. You've inspired me!

This is very interesting topic. It is well written and excellent article. Thanks

Thanks so much for these tips. I've seen both - I was in a small firm that did CRM and they had incredibly difficult to bridge silos for a company for company of 60 people. Their silos were worse that the big GSE I had worked for. Now I'm with a small company that is going through the adjustment into bigger company and I appreciate your example of being flexible enough to realize the need to adjust and then successfully make the adjustment. You've inspired me!

In the military we've come to refer to "Stovepipes" as "Cylinders of Excellence" with the goal of waking up the folks inside those stovepipes and to remind them we are a team, they have a role in the entire big picture, and it is starting to work for us. It's not an insult, just a way to get folks thinking.

I personally spend time learning and paying attention to other divisions within our organization looking for synergies or opportunities to work together with others to get the mission done and stretch out our limited resources for the best possible return.

To answer your question: the military has a lot of professional military education "PME" and encourages working together. Like the Japanese factory workers, we also do physical fitness together. The bigger your organization gets, the more a leader has to work at keeping people on the team and to breakdown their cylinders, stovepipes, functional area or perhaps what it really is: selfishness.

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