What is the silo effect?

The silo effect is principally the result of compartmentalisation in an organisation. That is, when there is a separation of persons and groups, silos are formed, and the results would be that the groups do not make corporate efforts for the advancement of the overall goal. There is no collaborative effort to aid the general objective of the organization and in many cases, certain compartments will advance the others and it may result in a setback for the corporation as a whole. The silo effect capitally shows insularity among departments in an organisation. This separation is a major drawback to a progressive business organisation because it breeds division, alienation and oftentimes disagreement among groups.