Is Your Business a Silo?

There is a very significant trend evolving today in the business world. It is the "Anti Silo" movement. Those of us who have spent decades working in the hospital environment are very familiar with "silos." Silos are independent "service lines" which treat one aspect of the health of the patient. These silos are often bureaucratic and often have minimal interaction with other silos treating the same patient. Finding a "quarterback" who can help you integrate all the silos services in a comprehensive plan can be both time consuming and frustrating.

Industry leaders like the Mayo Clinic and the Cleveland Clinic have, or are in the process of developing, plans to address this issue. The Mayo Clinic has just announced a $5 Billion game changing approach to "client-centric medical service delivery." One element of the new Mayo Plan is to gather patients with like symptoms as opposed to gathering patients by treatment modalities.

What do we learn from this type of thinking and planning? Who are the "Anti Silo" thinkers and what do they know about the application of their logic and vision tp the business world?

Let's start with what they know:

• Relationship marketing is not a fad or a gimmick. The insurance industry has taken hits over the past decade for selling policies and not interacting with clients until the next premium notice is delivered. The simple truth is that ongoing contact with clients assists retention, increases referrals, and leads to a higher degree of satisfaction and related well-being.
• In the business world, it is often overwhelming and frustrating trying to find the right person to help solve your problems. Here, the "right person" is someone who speaks the language of your product, knows the arena in which it plays, and can evaluate the difference between true growth opportunities and chasing shiny coins!
• Recognizing that there are other paths to growth and increased revenue than looking for more clients that look and act like your current clients. In the new business model, you need to step out of the box and look at other potential users of your product whose businesses would benefit from your product. Who is currently providing services and products that are recognized for their expertise in serving that new market and begin to dismantle the silo you have built. Explore the overlap of the circles of need of your current customers and the needs of the new client group. For decades your core business is providing travel opportunities. do you dismantle the silo and form an "alliance" or affiliate relationship with the providers of car rentals, hotels, or travel interruption insurance? In so doing, you have increased the access to consumers from one channel to four channels.
• Lead from Strength- The referral process should be guided by the relationship your affiliate or alliance partner has with clients who can benefit from your product or service. They make the initial case for how their alliance partner can help their product be even more successful. Their relationship with their client is the bridge to introducing you to that client. This process brings you into the arena with confidence, assurance, and a heightened potential for success.
• Win-Win Relationship- When this process is managed correctly, it actually is a win-win-win! The client has the benefit of finding a solution to enhancing or adding value to their product. Many companies have found it beneficial to reward the client for making that decision. In some form (discounted or preferential pricing or a feature or benefit generally charged for) they are getting rewarded as an extension of good will and appreciation. With the cost of customer acquisition being high, both of the "affiliate partners" share a win-win.

As a frequent Amazon shopper, I am always reminded that people who bought what I just bought, also buy products X, Y and Z.

The truth is that you don't have to be a Mayo Clinic or a Cleveland Clinic or even a vice president of Amazon to ask yourself the question, "Am I a silo builder or an architect of affiliate relationships?"

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