Pascal Visée [Archive.org URL]

Functional silos almost assure suboptimal outcomes. Most business processes cross functional boundaries. One example is order to cash: sales receives an order, logistics undertakes fulfillment, and finance handles invoicing and cash. Managing a process through separate silos almost guarantees complexity. It creates internal inconsistencies and punishes the customer with foreseeable mistakes. There are exceptions, of course. One is the supply chain, which in many multinational companies is organized on a truly end-to-end basis, from purchasing to production to delivery (“make to deliver”). Most operations, however, are not managed on an end-to-end basis.

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