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Entrepreneur
4 days ago
- Business
- Entrepreneur
The Hidden Costs of Siloed Teams
Opinions expressed by Entrepreneur contributors are their own. Throughout my career, I've seen a recurring pattern inside countless organizations, from agile mid-market players to global enterprises. I'll see talented, hard-working teams in marketing, sales, customer success and R&D pushing relentlessly to hit their numbers. On paper, everyone is doing their job. Yet, the organization as a whole feels stuck, fighting against an invisible current of internal friction. This is a frustration I hear constantly from CEOs and other executives. They see the immense effort but not the exponential results that should follow. There's a palpable disconnect they can't quite pinpoint, because the problem isn't a lack of talent or effort. The problem is that their go-to-market (GTM) engine isn't a cohesive unit; it's a collection of high-performing but disconnected silos. And in today's volatile market, this internal fragmentation isn't just inefficient — it's a direct threat to survival. Related: How to Break Down Silos in Your Company by Building Lanes The real problem: Your biggest threat is internal fragmentation A fragmented go-to-market is one of the most significant, yet hidden, costs in business. When teams operate in isolation, the symptoms are immediate and corrosive. Budgets are wasted on redundant tools and overlapping efforts, and because cross-functional finger-pointing becomes the norm, employee morale inevitably drops. It gets worse when misaligned KPIs incentivize teams to optimize for their own success, often at the expense of the company's larger goals and, most critically, the customer's experience. This internal chaos, in turn, spills outward. From the customer's perspective, the experience is disjointed and frustrating. They are forced to navigate a maze of different departments that don't seem to talk to each other. But this isn't just a minor inconvenience; it's a strategic vulnerability because while you're busy managing internal friction, your more agile, integrated competitors are delivering the seamless, personalized and relevant experiences that customers now demand. So they aren't just stealing market share; they are making you obsolete. The 3 pillars of an integrated go-to-market engine Breaking down these silos requires more than a simple reorganization. It demands a fundamental shift in mindset. Based on my experience and reinforced by what I see every day in the SAMA community, this transformation is built on three core pillars that connect and build on one another. Shared metrics, shared mission: A fascinating thing happens when you get leaders from marketing, sales and product in the same room. And when you peel back the layers, they discover they have much more in common than they thought. In fact, they're all accountable to the same macro-outcomes: customer acquisition cost (CAC), lifetime value (LTV) and net promoter score (NPS). Therefore, the first step to integration is to elevate these shared metrics above any siloed functional goals. This aligns everyone around a single, unified mission: creating and retaining high-value customers. Radical empathy: Once you have a shared mission, you need a new way of working together to achieve it. After all, structure follows strategy, but culture determines success. You cannot simply mandate collaboration; you have to cultivate it, and that begins with empathy. This means creating forums where teams can openly discuss their priorities, challenges and processes. When the sales team understands the data behind marketing's lead-scoring model, and the product team hears firsthand from customer success about user frustrations, the dynamic shifts. As a result, what were once transactional handoffs become genuine collaborations built on trust. A unified view of the customer: The ultimate outcome of this mission-aligned, empathetic collaboration is the ability to see the business through a single, powerful lens: the customer's. This unified perspective is powered by a cohesive GTM engine that gathers data and insights at every touchpoint, creating a true 360-degree view of the customer journey. And in the age of AI, this becomes the very foundation for resilience. Instead of just analyzing historical data, your organization can finally build predictive models to anticipate needs, identify risks and uncover opportunities for innovation. With that, the entire business moves from being reactive to proactive, creating a competitive moat that is nearly impossible for fragmented competitors to cross. When these three pillars are in place, the result is a formidable competitive advantage. The organization becomes more agile, more innovative and more attuned to the customer. Related: The Best Leaders Follow These 13 Rules of Cross-Functional Collaboration Your playbook for breaking down the silos And the good news is that this transformation doesn't require some massive, multi-year initiative. For any leader who recognizes their organization is caught in this silo trap, the path forward begins with three surprisingly direct and intentional steps: Step 1: Get the leaders in a room and define the "why." The first move is to convene the heads of marketing, sales, customer success and R&D, but the purpose here is critical: The first conversation must center on the why . This means framing a shared mission around the business impact you expect and, most importantly, the value it will deliver to the customer. This initial step transforms what could be just another meeting into the formation of a new, unified leadership coalition. Step 2: Map your common ground. From there, it's about getting everything on the table. Have each leader present their team's top priorities and the primary KPIs they are measured against. As you put these on a whiteboard, the shared metrics — LTV, CAC, churn — will become obvious. This simple exercise visually dismantles the illusion of separate missions and builds a foundation of shared accountability. Step 3: Build a unified plan. Once that common ground is established, the conversation naturally shifts toward identifying one or two critical gaps — like improving lead conversion, reducing customer churn, or launching a new product — that no single team can solve alone. The key then becomes to collaboratively build a single, unified plan to tackle it, complete with shared responsibilities and metrics for success. This first joint effort, however small, is what begins to build the crucial muscle memory for cross-functional collaboration. These steps are not just a one-time fix; they are the building blocks of a new operational rhythm. By making this process a habit, organizations move from concepts to execution and begin to instill a resilient, integrated culture from the ground up. Related: How to Build a Solid Go-to-Market Strategy for 2025 The future is collaborative, not isolated Yet still, the pushback I often hear from busy executives is that while this sounds great on paper, they simply lack the time for another initiative. The reality, however, is that this is not additive. This is a strategy for unlocking immense productivity and leverage from the resources you already have. It's about making your entire organization more effective at a time when budgets are tight and every dollar counts. I recently gave a keynote at a large energy company that had completely shifted its operating model to ensure this kind of GTM integration was baked into its culture. Instead of treating it as an extra project, they embraced it as the only way to get better together and meet the relentless pace of customer and market demands. In an era of unprecedented disruption, having the best product or the most aggressive sales team is no longer enough. The ultimate competitive advantage is organizational alignment. So, the question is no longer if you should integrate your go-to-market teams, but how quickly you can do it. Because your growth, and perhaps survival, depends on it.
Finextra
28-07-2025
- Business
- Finextra
No AI? No exit, says investment bank Artis Partners
Fintechs that fail to embed AI into their operating model will find it increasingly difficult to orchestrate an exit, according to investment bank and tech advisory firm Artis Partners. 0 Embedded AI has become a fundamental trigger for enterprise software acquisitions, reshaping how strategic buyers select targets, according to Victor Basta, managing partner at Artis Partners. 'Without a deeply embedded AI story, soon it will probably become impossible for any digital-first business to succeed in terms of getting an exit,' he says. Most strategic buyers — particularly mid-market public companies and larger private equity-backed platforms — are acquiring businesses which have successfully embedded AI into their product functionality and operational delivery, says Basta. 'These companies don't manifest as AI businesses. They're not on a Gartner AI list,' he adds. 'But that capability 'under the hood' is exactly what buyers are chasing. It's about acquiring businesses with customers, product, and domain strength, but with AI capability already built in.' This marks a clear shift from 12 months ago, when AI-native model-builders and enterprise software companies operated in separate market segments. Today, strategic buyers no longer separate these categories, as adoption quickly becomes more use case driven rather than infrastructure led. Additionally, buyers are assigning higher valuations based on perceived differences in how deeply companies have embraced AI credibly. Recent deals Artis advised on highlight this dynamic. Ravelin Technology, acquired by Worldpay, leverages embedded AI for merchant fraud detection. Likewise, businesses as diverse as digital mental health platforms and HR enabling software are in the process of being acquired based on their ability to support customers with AI capability tuned to their specific use case. Neither of these examples would position themselves as AI-native, yet embedded AI significantly underpins their strategic value. 'In a year or two, there will be no software that isn't AI, so the current distinctions driving exit values will no longer apply, but for the moment it is making the difference between prices of 100 and 200 for similar businesses,' says Basta. 'Buyers understand this and are acting now to build capability from within.'
