Thus information is not adequately shared but rather remains sequestered within each system or subsystem, figuratively trapped within a container like grain is trapped within a silo: there may be much of it, and it may be stacked quite high and freely available within those limits, but it has no effect outside those limits.
A silo mentality is created by the divergent goals of different organizational units: it is defined by the Business Dictionary as "a mindset present when certain departments or sectors do not wish to share information with others in the same company".
[clarification needed] A silo mentality primarily occurs in larger organizations and can lead to poorer performance and has a negative impact on the corporate culture.
Silo mentalities can be countered by the introduction of shared goals, the increase of internal networking activities and the flattening of hierarchies.
[3]The term functional silo syndrome was coined in 1988 by Phil S. Ensor (1931–2018) who worked in organizational development and employee relations for Goodyear Tire and Rubber Company and Eaton Corporation, and as a consultant.