Page 206 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

88 SILO BUSTING

How do you get people to collaborate within an organization
across business divisions? The answer is to focus on the thing
that should unite you most—the need to serve customers—in five
practical ways.

The idea

Many businesses have either failed or not realized their potential
because they were divided by rivalry and did not adequately serve
customers. This matters at any time, but is particularly problematic
if the firm is launching a new product or looking to sell more to
existing clients and contacts.

In 2001, GE Medical Systems (now GE Healthcare) started
providing consultancy services (known as Performance Solutions)
to complement its sales of imaging equipment. Initial sales for
consultancy services were strong, but declined by 2005 because
of a lack of coordination between divisions selling equipment and
consultancy. Its response was to alter its approach, to be more
customer-centered, and to change the sales organization.

In practice

• Start by increasing coordination across boundaries. This can

be done in three ways: sharing information, especially about
customers; sharing people and skills; and, as far as possible,
making collective decisions. The danger is that traditional silos
will be replaced by customer-focused ones—yet even this is a
step forward. The key is to overcome traditional divisions.

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