How can we quantify the damage caused by silos?

The quantification of the damage caused by silos can be carried out across all five dimensions that need to be addressed in order to eliminate them:

• Processes and Technology: Average number of errors (rework) in selected processes; operational costs of executing selected processes; percentage of IT systems that are not integrated with each other (e.g., ERP and CRM); number of shadow IT systems.

• Organizational Structure: Number of organizational units involved in one process; number of duplicated activities within the structure; number of hierarchical levels relative to the number of employees.

• Performance Management: Number of shared KPIs between organizational units within the same process; percentage of KPIs linked to the end result of the process or customer experience.

• Leadership: Percentage of managers participating in cross-functional initiatives/teams; percentage of meetings with agendas that include cross-functional collaboration, team achievements, and coordination.

• Organizational Culture: Does the culture promote collaboration or just loyalty to the function/team? Do employees feel an "us vs. them" mentality between teams/functions? Is knowledge accessible and shared or hoarded locally?

The idea is to take measurements based on the above indicators during the as-is phase and repeat them after implementation and stabilization of the solution—in the to-be phase.