The Psychology of Siloed Teams

Exploring why some teams remain fragmented and how to foster a culture of collaboration.

Fragmented teams don’t fail because of bad intentions
—they fail because of bad systems.

Even in organizations full of talented, motivated people, teams often end up working in silos—disconnected from one another, unaware of how their work fits into the bigger picture. This isn’t because people don’t care about collaboration. It’s because the systems they’re working within unintentionally create barriers that keep them apart.

The truth is, collaboration doesn’t just happen by asking people to work together—it has to be built into the structure of the organization. Without the right systems in place, even the most well-meaning teams can end up fragmented, leading to miscommunication, duplicated efforts, and frustration.

But why exactly does this happen? And how can you fix it?

Let’s dive into the psychology behind why teams work in silos and what you can do to foster a culture where collaboration isn’t just encouraged—it’s automatic.

The Comfort of the Familiar

It’s human nature to stick with what (and who) we know. In psychology, this is called the mere exposure effect—we prefer things (and people) that we’re familiar with. In a workplace setting, this can lead to teams sticking within their own groups, creating silos without even realizing it.

Teams build a rhythm and a sense of identity based on their immediate environment—their department, their specific goals, and their way of doing things. In fact, studies show that people tend to trust and cooperate more with those they have frequent interactions with.

Over time, this creates a sense of “us vs. them” without anyone meaning for it to happen. Sales focuses on closing deals. Marketing works on generating leads. Operations is heads-down on delivery. Each group becomes so absorbed in its own work that it forgets how it connects to the larger mission.

A 2020 study by McKinsey found that 80% of senior executives acknowledge the presence of silos within their organizations, with poor communication being a significant cause. Silos emerge not from bad intentions, but from people becoming comfortable with their immediate teams and failing to interact across departments. You can explore more about this in McKinsey's Silo Syndrome Report.

The fix: To break out of this siloed mindset, leaders need to cross-functional collaboration by creating opportunities for teams to work together. This could be through joint projects, cross-departmental brainstorming sessions, job shadowing, or even rotating team members into different departments temporarily. Breaking down the comfort zone of familiarity helps to open up communication and dismantle silos.

Why Teams Keep Knowledge to Themselves

Another major cause of silos is information hoarding—whether intentional or not. People often hold onto information because they feel it gives them a competitive advantage or simply because they’re not aware that others could benefit from what they know. In larger organizations, this can happen when communication flows vertically within departments but not laterally across teams.

Research by McKinsey found that employees spend almost 20% of their workweek searching for internal information or tracking down colleagues for help. Not only does this waste time, but it also fosters a siloed mentality where people aren’t inclined to share knowledge freely.

How to fix it: Build a culture of transparency by promoting open access to information. Use shared tools like company-wide dashboards or knowledge bases where everyone can access the data they need. Reward knowledge-sharing behaviors through public recognition, bonuses, or other incentives. Leaders should model transparency by openly sharing their decision-making processes, signaling that collaboration and openness are valued over individual control.

Why Teams Compete Instead of Collaborate

Imagine two football players on the same team, but one is focused on winning the game while the other is playing for individual glory. That mismatch in priorities can disrupt their performance—and the same happens in companies when teams have conflicting goals.

Misaligned goals occur when departments are given KPIs that don’t align with one another. For example, marketing may be focused on generating leads, while sales is evaluated on revenue. Without shared targets, teams might unintentionally work against each other, despite their overall goal being the same.

How to fix it: Align goals across teams by creating shared performance metrics. Instead of marketing being measured solely on leads and sales on revenue, create joint metrics such as “qualified leads converted to customers.” When teams share the same targets, they’re naturally more inclined to collaborate because their success is tied to each other’s efforts.

The Absence of Psychological Safety: Why People Don’t Speak Up

Collaboration isn’t just about sharing information—it’s about creating an environment where people feel comfortable contributing ideas and giving feedback. In siloed organizations, psychological safety is often lacking. Teams may hesitate to ask questions or suggest new ideas because they fear judgment or rejection from other groups.

According to a study by Google’s Project Aristotle, psychological safety is the number one factor in determining whether a team is successful. Without it, teams don’t feel empowered to share ideas across departments, which leads to missed opportunities and stifled collaboration.

How to fix it: Foster a culture of psychological safety by encouraging open communication and feedback. Leaders should actively invite input from all teams and create an environment where ideas are judged on their merit, not their source. Regularly hold cross-departmental retrospectives where teams can discuss what worked, what didn’t, and how collaboration can improve.

The “Not My Job” Mentality: Why Teams Avoid Extra Effort

The “not my job” mentality is one of the most subtle but damaging contributors to siloed teams. Employees or teams may focus solely on their specific responsibilities and refuse to engage in tasks outside their job description. While clear role definitions are necessary, this mindset can hinder collaboration when people avoid contributing to wider organizational goals simply because they don’t see it as their responsibility.

How to fix it: Promote shared ownership and accountability across the organization. One way to do this is by introducing cross-functional OKRs (Objectives and Key Results) that require teams to work together to achieve common goals. Leaders should communicate the importance of collaboration regularly and model that behavior by pitching in to support other departments.

Lack of Tools and Systems

Sometimes, teams want to collaborate but don’t have the tools or systems to do so effectively. If your company’s communication tools are outdated, inefficient, or limited, people will default to working in isolation because it’s easier.

Research by Gallup shows that 74% of employees feel they miss out on company information due to poor communication tools. Without streamlined communication, work becomes fragmented and disconnected.

How to fix it: Invest in modern collaboration tools that make it easy for teams to communicate and share information seamlessly. Use cloud-based project management software, video conferencing platforms, or instant messaging apps. Just as important, ensure teams are trained to use these tools effectively so they don’t fall back into old habits.

Building a Culture of Collaboration

Silos in the workplace don’t form because people don’t want to collaborate—they form because the systems, structures, and mindsets in place make it easier to work separately than together. To break down these barriers, you need to address both the psychological tendencies that keep teams isolated and the practical issues that prevent collaboration.

Here’s how you can foster a culture of collaboration:

• Encourage cross-functional teamwork to push people outside their comfort zones.

• Create open communication systems that make knowledge-sharing easy and transparent.

• Align goals across departments to ensure everyone is working toward the same objectives.

• Promote shared ownership to eliminate the “not my job” mentality.

• Invest in modern tools that make collaboration effortless and efficient.

When collaboration is woven into the fabric of your organization—through systems, tools, and a shared mindset—your teams will be far less likely to work in silos and far more likely to work together toward a common goal.

What’s one step your organization could take today to encourage more
cross-functional collaboration and break down existing silos?