How to Avoid Change Silos

What is a Change Silo?

 

A change silo is created when there is a functional change across an organisation. For example, Finance changes the responsibility for budget preparation. The change involves moving from a centralised corporate responsibility to a regional decentralised responsibility. The change silo exists because finance only considers the technical financial requirements and fails to consider the complexity of the total organisation context.

 

The following possible unintended effects are:

 

{    Management resistance because of fears that the organisation’s positive culture, mission and values will be compromised

 

{    Budget outcomes are second-rate due to a failure to adjust delegations, organisation reporting lines, roles and people capabilities

 

{    Conflicts between new information technology requirements and how people traditionally obtain information and create knowledge to achieve results

 

How to avoid Change Silos

 

  1. Design small change steps with clear milestones.

 

  1. Include in each change step considerations for all the major organisation context factors:

 

{    Strategy

{    Culture, values, mission

{    Organisation structure

{    Roles, skills, people

{    Processes

{    Technology

 

  1. At each milestone evaluate how the change is progressing within the total organisation context

 

  1. Continually adjust and synchronise the major organisation context factors that determine success

 

Dallas Burgess

 

 

© Organisation Renewal Pty Limited 2008

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