Silo effect - Definition

The silo effect is a phrase that is currently popular in the business and organizational communities to describe a lack of communication and common goals between departments in an organization. It is the opposite of systems thinking in an organization. The silo effect gets its name from the farm silo, probably because there could be two silos right next to each other and if people were inside them they would not be able to communicate, since silos are tall, narrow buildings with no windows and are even supposed to be airtight.