Units often benefit from sharing knowledge or skills. We’ve found that most business synergies take one of six forms: Shared Know-How The word synergy is derived from the Greek word synergos, which means “working together.” In business usage, synergy refers to the ability of two or more units or companies to generate greater value working together than they could working apart. ![]() ![]() Simply put, many synergy efforts end up destroying value rather than creating it. Sometimes, the synergy programs actually backfire, eroding customer relationships, damaging brands, or undermining employee morale. It distracts managers’ attention from the nuts and bolts of their businesses, and it crowds out other initiatives that might generate real benefits. If the only drawbacks to such efforts were frustration and embarrassment, they might be viewed benignly as “learning experiences.” But the pursuit of synergy often represents a major opportunity cost as well. Others become permanent corporate fixtures without ever fulfilling their original goals. Others generate a quick burst of activity and then slowly peter out. Some never get beyond a few perfunctory meetings. What emerges from all this activity? In our years of research into corporate synergy, we have found that synergy initiatives often fall short of management’s expectations. Organizational structures are reshuffled to accommodate new, cross-unit managerial positions. Processes and procedures are standardized. Incentives for sharing knowledge, leads, and customers are built into complex compensation schemes. Cross-business teams are set up to develop key account plans, coordinate product development, and disseminate best practices. ![]() Meetings and retreats are held to brainstorm about ways to collaborate more effectively. Send us feedback about these examples.The pursuit of synergy pervades the management of most large companies. These examples are programmatically compiled from various online sources to illustrate current usage of the word 'synergy.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Amber Smith, Discover Magazine, Welcome to the world of Stellantis, where mandatory synergies and compulsory differentiation are battling it out 24/7. Freeman, National Review, 1 June 2023 All these natural ingredients work in synergy with each other to free you from years of body fat. Mara Balagtas McIlwrath, Car and Driver, 1 June 2023 Visions of a Ted Turner–like synergy between the Atlanta Braves and his satellite TV interests were made to dance in our heads. Archana Narayanan,, 6 June 2023 Mazda has spent over a century employing a human-first approach to building vehicles-centering the car around the driver to create a holistic and natural synergy from open road to race track. Yossman, Variety, 13 June 2023 The pipeline across the buyer universe - strategics, sovereign wealth fund, and financial sponsors - remains strong but with an enhanced focus on integration synergies and value creation. Amber Smith, Discover Magazine, 2 July 2023 The last phase will focus on internal consolidation, further resource utilization and more synergies across the Group. Willa Paskin, New York Times, 11 July 2023 Nootropics are known for their ability to enhance cognitive performance, but Rainbow Nutrients went the extra mile by using a unique blend of natural and synthetic compounds that work in synergy to deliver maximum benefits. ![]() Recent Examples on the Web This is the bet: that a good movie will drive near-infinite brand synergies.
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