One often hears partners or legal leaders mention ‘silos’ as an issue in their firm. Mostly, firms struggle to deal with this insidious threat that can, by stealth, undermine much of what is good about a firm and over time, cause extensive damage or block progress.
Also, once they are embedded in the culture and way of doing business of a firm, they are hard to eradicate. Often they arise due to simple failings around fundamental matters such as communication, consultation, trust and respect or lack thereof. Addressing them requires a direct interest and commitment from senior leadership. Failing this, nothing changes.
These silos, or what I have termed ‘horizontal’ or ‘vertical’ silos, even rear their heads in the most successful of firms. Only last week while on assignment in New Zealand a senior partner in a blue-chip corporate firm commented in regard to horizontal silos, ‘it is an issue which seems to have crept up on us – too many of our younger lawyers mix and share very well amongst themselves, but mainly within their levels or hierarchies, not above or below. This holds them back and impacts the effectiveness of the group in servicing clients. The problem is that management don’t seem to recognise this and get defensive if it is raised’.
They can even arise in the smallest of firms – I encountered such silos in a highly leveraged and successful south-eastern Asian two-partner firm!
Firstly, Vertical Silos; what do we mean by them? Essentially a body of people within the firm that, notwithstanding position, role or seniority, tend to work somewhat alone and isolated from others. They do their own thing and are characterised by a lack of sharing and communication. This may apply to practice or industry sector groups, partner teams, offices or even floors within offices. We have all seen them and experienced them at some time or another.
Secondly, horizontal silos; these can develop when there is a lack of communication, sharing or interaction between groups defined by role or seniority. The most obvious examples here are when salaried partners say are not treated as ‘partners’ but as ‘glorified employees’ which causes resentment, a lack of sharing, under-performance, lack of recognition and file or client hogging.
In both cases there will be examples that I have not listed or thought of.
What makes vertical and horizontal silos a challenge?