Synergy Definition: How to Create Synergy in the Workplace

Synergy is a state of cooperative interaction where different participants contribute to common goals. In the world of business, “synergy” means a form of teamwork where different companies or departments merge their efforts for a greater combined effect.

The roots of the word “synergy” can be traced back to the Greek “sunergiā,” which means "cooperation," and “sunergos” (sometimes spelled “synergos”), which means "working together." A close thesaurus synonym, “synergia,” has a nearly identical meaning and is sometimes used as a buzzword in corporate settings.

Businesses seek to encourage synergistic behavior among different employees and different departments under the premise that a cohesive team's impact exceeds the sum of its members’ individual effects. You can use a number of strategies to promote corporate synergy.

1. 1. Calibrate mission statements. Companies can promote synergic behavior by crafting and promoting mission statements that apply to all departments. When all members of an organization work toward the same goal, corporate synergy often follows.
2. 2. Cut redundancies. Synergy describes a combined effort that exceeds the sum total of individual inputs. When employees or departments do redundant work, they can get in each other's way and contribute to negative synergy, a state where the combined output is less than the individual inputs. Business leaders achieve cost synergies by eliminating redundant tasks and reassigning employees whose jobs overlap.
3. 3. Explore compatible mergers and acquisitions. Companies often seek out mergers for their potentially synergistic effect. Combined businesses can ramp up output and take advantage of economies of scale—effectively creating more goods and services in a more cost-effective way.

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