Synergy Definition: How to Create Synergy in the Workplace
Written by MasterClass
Last updated: Sep 1, 2021 • 1 min read
The dictionary definition of “synergy” describes a combined action from more than one participant. In the world of business, “synergy” and “synergism” refer to cooperative action where a whole produces more than the sum of its parts.
Learn From the Best
What Is Synergy?
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.
How to Create Synergy in the Workplace
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. 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. 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. 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.
Want to Learn More About Business?
Get the MasterClass Annual Membership for exclusive access to video lessons taught by business luminaries, including Sara Blakely, Chris Voss, Robin Roberts, Bob Iger, Howard Schultz, Anna Wintour, and more.
Vertical Merger: Definition and Types
Jan 31, 2023
Backward Integration Strategy: Pros and Cons for Businesses
Jan 21, 2022
Horizontal Integration vs. Vertical Integration: Definitions
Apr 15, 2021
Organizational Strategy: What Is Organizational Strategy?
May 10, 2022
The Hoshin Kanri Method of Strategic Management Planning
Apr 20, 2022
Zero-Sum Game Meaning: Examples of Zero-Sum Games
Aug 13, 2021
Other articles
Corporate Social Responsibility: How to Develop a CSR Strategy
May 5, 2022
Diseconomies of Scale: Definition, Types, and Causes
Aug 4, 2022
What Do Investment Bankers Do? Definition and Career Guide
Aug 11, 2022
Capital Structure: Definition, Formula, and Importance
Jul 31, 2022
Free Rider Problem: Definition and Examples
Jul 31, 2022
Nash Equilibrium: Definition and Examples of Nash Equilibrium
Aug 26, 2021
