---
id: "action-incentivize-collaboration"
type: "action-item"
source_timestamps: ["§ Effect #3: Undershot Company Targets"]
source_url: "https://hbr.org/2025/09/dont-let-ai-reinforce-organizational-silos"
source_title: "Don't Let AI Reinforce Organizational Silos"
tags: ["performance-management", "metrics"]
related: ["concept-shared-cross-functional-kpis"]
action: "Design and implement shared KPIs that measure collective, cross-functional outcomes rather than departmental metrics."
outcome: "Forces departments to align their AI tools and processes, reducing inter-departmental friction and improving overall corporate performance."
speakers: ["Graham Kenny", "Kim Oosthuizen"]
sources: ["tail2"]
sourceVaultSlug: "hbr-seg-tail2"
originDay: 2
articleStem: "hbr-tail-130-ai-reinforce-silos"
sourceUrl: "https://hbr.org/2025/09/dont-let-ai-reinforce-organizational-silos"
sourceTitle: "Don’t Let AI Reinforce Organizational Silos"
---
# Incentivize Cross-Functional Collaboration via KPIs

**Action:** Design and implement shared KPIs that measure collective, cross-functional outcomes rather than departmental metrics.

**How:** Replace function-specific performance metrics (e.g., sales revenue, HR engagement) with shared KPIs that reflect collective outcomes. Measure and reward cross-functional AI collaboration using metrics like end-to-end customer satisfaction or product launch cycle time. This enacts [[concept-shared-cross-functional-kpis]]; the exemplar is [[entity-cropedge-research]] (trial turnaround time from contract to delivery).

**Expected outcome:** Forces departments to align their AI tools and processes, reducing inter-departmental friction and improving overall corporate performance — closing the gap exposed by [[concept-siloed-ai-implementations]].

**Implementation caveat (enrichment):** shared KPIs can blur accountability and create measurement disputes when departments face different constraints; design them with clear ownership.