In today’s fast-paced and ever-evolving business landscape, the integration of functional silos is a critical challenge for many organisations. In my experience, not integrating these silos is the single biggest thing affecting the progression of the property, asset, and estate management profession.
But when functional silos are integrated the rewards are enormous.
Why are functional silos a problem?
Modern businesses and organisations are complex. It’s important to organise them in a way that creates a high-performance environment. The property, asset and estates functions typically follow a generic functional model such as:
- Space management
- Capital programmes and projects (the PMO)
- Facilities management
- Maintenance management
- Carbon and energy
- Compliance
This list is not exhaustive, and in addition these functions must then work alongside others such as Health and Safety, Finance, IT and Procurement and the like.
You can change the terms and debate nuance, but this is how property functions are typically organised. And on the face of it, they make sense. When working well they perform within the aims and limits of their function. The issues arise when these silos must coordinate with each other and outside of their direct area of control.
Coordinating across functions
Uncoordinated functional silos can result in delayed decision-making and suboptimal resource utilisation. It can also create a fragmented approach to directing and managing the business. Crucially, not coordinating means that the business knowledge and data, generate poor management information. The business directors are presented with fragmented management information that prevents robust scenario planning, what-if analysis and investment decision-making.
The interdependencies between the silos need to be understood and integrated. These businesses become data rich and management information poor, as they are unable to address key challenging questions:
- How can you prioritise and spend on capital projects without understanding the impact to space planning, carbon planning, compliance, backlog maintenance, facilities, finance, and IT?
- What if your priorities change with new business or government policy?
- What if budgets are compromised by other unexpected demands?
- What happens when you must replan your programme of works over the next ten years?
By actively integrating functional silos, organisations can enhance their management processes and capabilities. This leads to:
- Enhanced Decision-Making: By integrating functional silos, organisations can access real-time data and performance metrics across all departments. This comprehensive view allows for better-informed decisions and more effective strategic planning.
- Improved Efficiency: Breaking down silos cuts redundancy, waste and streamlines processes. This leads to increased operational efficiency and reduced costs.
- Better Resource Allocation: Organisations can optimise resource allocation with a unified approach. This ensures all departments are aligned and working towards common goals.
- Increased Collaboration: Integration fosters a culture of collaboration. Encouraging departments to work together and share information leads to innovative solutions and improved overall performance.
- Enhanced Visibility: Improved transparency of data and management information provides greater visibility into operations. This allows for better monitoring and management of space, maintenance, compliance, projects and resources.
- Stronger Relationships: Integrating silos encourages individuals to interact with a broader range of colleagues. This fosters stronger relationships and creates a more cohesive work environment.
- Enhanced Specialisation: While silos can encourage specialisation within departments; integrating them ensures that specialised knowledge is shared across the organisation. This leads to better overall enhanced performance.
- Clearer Accountability: Integrated systems make it easier to assign tasks and monitor progress. This leads to clearer accountability and more efficient project management.
Summary
Integrating functional silos is a strategic move that can significantly enhance an organisation’s performance and adaptability in a rapidly changing business environment.
