Block's CTO reveals a counterintuitive lesson: reorganizing from a GM-based structure to a functional one (where all engineers report to one org) was the key to their AI transformation. This structural change had a greater productivity impact than any specific AI tool they implemented.

Rather than relying on formal knowledge sharing, Alphabet's X embeds central teams (like legal, finance, prototyping) that float between projects. These individuals become natural vectors, carrying insights, best practices, and innovative ideas from one project to another, fostering organic knowledge transfer.

To ensure genuine collaboration across funds, Centerbridge structures compensation so a "substantial minority" of an individual's pay comes from other areas of the firm. This economic incentive forces a firm-wide perspective and makes being "part of one team" a financial reality, not just a cultural slogan.

In fields like finance, communities with strong internal communication and vested interests make better long-term decisions than purely quantitative models. The group's "shared wisdom" provides a broader, more contextual view of risks and opportunities that myopic mathematical approaches often miss.

Combining strategy, M&A, and integration under a single leader provides a full lifecycle, enterprise-wide view. This structure breaks down silos and creates a "closed-loop system" where post-deal integration performance and lessons learned directly feed back into future strategy and deal theses, refining success metrics beyond financials.

Alan Waxman's favorite deals are not measured by outcome but by process. He cites investments in Airbnb and large portfolios from Lloyd's Bank and Credit Suisse as favorites because they required mobilizing 50-75 people across different asset classes and geographies, demonstrating the power of the firm's collaborative culture.

Block restructured from divisional GMs to a functional organization (Engineering, Product, Design) across all brands. This creates a single shared roadmap and forces alignment, enabling cross-unit collaboration that was difficult when incentives were siloed in separate P&Ls.

Structuring compensation around a single, firm-wide P&L, rather than individual deal performance, eliminates internal competition. It forces a culture of true collaboration, as everyone's success is tied together. The system is maintained as a meritocracy by removing underperformers from the 'boat.'

To break down silos, leaders should encourage teams to "move as a group." This means using shared, informal communication channels like group texts to brainstorm and tackle challenges collectively in real-time, rather than having individual members work in isolation.