One third of HR professionals are to blame for creating worrying forms of ’silo’ working

Research launched today from database experts FileMaker reveals that the increasing IT skills of HR professionals and general office workers, coupled with the ease of use of modern technology is creating new and worrying ëmicro-silosí of data amongst UK SME business, putting productivity, compliance and the bottom line at risk.

Questioning over 100 people responsible for IT management within UK businesses with 250 employees or less, the research highlights that whilst the technology available to UK businesses has never been better, end users are taking IT policies into their own hands. In doing so they are creating dangerous micro-silos of data within their organisations, typified by crucial documents being locked away on individual PCs / email accounts and creating a wilderness of data outside existing policies and processes.

The FileMaker ëBusiness Information Silosí research report also found:

HR professionals create compliance chaos ñ One third of HR professionals (31%) were seen as the worst offenders of customising critical databases that lead to serious workflow/compliance issues

Poor IT planning ñ 64% of respondents believe their business suffers from a micro-silo mentality when it comes to company information, with almost half (45%) believing this is a result of poor IT management

Diluted IT skills ñ It appears that the most junior and most senior employees have the lowest IT skills, with this situation increasing as the business size grows. Only 1 in 5 of business directors in companies of 20 people stated having high IT skills

IT free-styling ñ 77% of businesses think it is easier to create/customise critical business applications than three years ago, resulting in essential data residing with single users

Self-taught IT ñ A third of IT managers (33%) have no formal IT qualifications, and are either self-taught or trained on the job, with 40% also coping with a dual role of director (41%) or operations manager (36%)

Two new forms of silo mentality

Silo mentality is a well-documented phenomenon within many businesses, usually referring to departmental barriers, however the above findings expose two new kinds of ësilo mentalityí. The first, evident in 60% of responses, is created by employees harbouring critical information in their email or on local hard drives, which left unchecked results in the value of company information being eroded or never fully realised.

The second is generated through user manipulation. Two thirds of companies admitted to creating new ad hoc files outside existing processes. At best this situation causes great duplication in effort, but in many cases can have a severe effect on company compliance, visibility and accuracy of data, which can ultimately damage the bottom line.

Tony Speakman, regional manager Northern Europe, FileMaker stated, ìThis research highlights that critical information management is being seriously harmed. Not just by simple bad habits but also by users actively creating, and in some cases unintentionally distorting, information to suit their own needs. These findings should provide a real wake up call. Whilst increased autonomy and a greater spread of IT skills can lead to a more fluid use of business information, SMEs must quickly rethink their information needs and processesî.

Off-piste IT policies

As a result of many business users becoming more familiar and less fearful of technology, IT skills, and consequently IT autonomy, no longer exclusively resides with the IT department.

Clear evidence for this can be seen when examining the worst culprits of ëmicro-silo mentalityí with the ëinformation hungryí departments clearly the biggest offenders of the ëoff pisteí approach to IT policies. Sales teams are the biggest culprits of rogue data management at 61%, closely followed by Finance (51%), Marketing (42%) and Operations at 33%. Somewhat unsurprisingly, IT, who is often charged with keeping on top of all this information chaos are the least likely to form micro-silos with only 25%.

IT owners also face the strategic challenge in managing and administering business applications and the new data they control. With makeshift servers residing in the inboxes and local PC drives of the majority of employees, the question is whether better policing or education is needed to reverse this trend.

Does size really matter?

The research also highlights that the size of business plays a huge part in the IT sophistication of its users. Whilst smaller businesses focus more on developing internal user skills, hence the higher IT skill base in smaller companies, larger businesses choose to outsource many processes and place the skills and autonomy outside of the core business.

Interestingly ëmicro-silo mentalityí is dramatically increased when a company decides to outsource its IT. 68% of the larger businesses (20 ) questioned outsource to some extent and 83% of these companies state a significant increase in silos after outsourcing. A likely cause is that even moderately educated IT users like to retain some control over their own data and therefore choose to keep it close to hand on their local drives and emails.

Billy Hamilton-Stent, director, Loudhouse, which carried out the research commented, ìSMEs are typically viewed as more flexible and adaptable workplaces where independent thought and creativity are often encouraged. However when this approach is applied to central IT systems it is a potential cause for concern. To ensure that businesses do not stifle what makes them great but also mitigate any compliance risks they must look to balance the need for organisational control against individual independence and information access needs.î

Speakman concluded, ìThe solution for many businesses is likely to be a combination of changes on many different levels. Importantly, there is a need to identify the software and user habits that contribute to fluid workflow and efficiency, whilst removing those practices that compound the problem of rogue application and data use.î

For organisations worried about micro-silo mentality developing in their own businesses FileMaker offers the following tips:

Integrate the micro silos in your business: Encourage employees to save and share information centrally and promote collaboration both within and across departments

Identify common data management challenges at source: Is there a clear written policy in terms of what is and is not acceptable use of IT by employees or is data abused by poor IT management?

Understand user behaviour: Hoarding of information is often a symptom rather than a cause of silo mentality. For example a mobile workforce that is not served by the current IT system will often use email as a default business drive because accessing the network is too cumbersome

Target key areas as a catalyst for change: Who are the database rebels in your organisation and how can you better support them? If certain roles in the business place greater strain on IT controls, perhaps more support, education, or even restriction is required in these areas

Differentiate between data for sharing and data for individuals: Identify which data needs to be used either by more than one person or for more than one purpose. Choose the appropriate location and tool for that data and then do not compromise on the implementation of a process that protects that data. BUT do allow data used by only one person to be handled in the way they wish.