Silos make sense if the product can cleanly be broken down into neat compartments. And those won't get disrupted easily. The business model is stable. Teams can have a clean, well defined, mandate.
Silos don't make sense if the existence of product area might go away every 6 month. Everything is fluid, and you'll need to regularly tear apart and reform teams. The business model is not stable. Or step-change growth is sought after by investing in new markets (and foreclosing old ones).
I've seen companies build structures like they're in the first category. As if things are stable. Then they need to grow or are themselves disrupted, they need to act more collaboratively across groups, or even dissolve groups. But they can't because the intentional silos have become overspecialized fiefdoms.
The cost of un-siloing is high. I much prefer companies with strong cultures beyond one fiefdom. They can quickly unform or form teams as needed without a lot of nonsense. And to do that, I think you need a lot of organizational muscle about un-siloing a lot.
Silos don't make sense if the existence of product area might go away every 6 month. Everything is fluid, and you'll need to regularly tear apart and reform teams. The business model is not stable. Or step-change growth is sought after by investing in new markets (and foreclosing old ones).
I've seen companies build structures like they're in the first category. As if things are stable. Then they need to grow or are themselves disrupted, they need to act more collaboratively across groups, or even dissolve groups. But they can't because the intentional silos have become overspecialized fiefdoms.
The cost of un-siloing is high. I much prefer companies with strong cultures beyond one fiefdom. They can quickly unform or form teams as needed without a lot of nonsense. And to do that, I think you need a lot of organizational muscle about un-siloing a lot.