Synergy is the energy or force created by the
working together of various parts or processes.
Synergy in business is the benefit derived from
combining two or more elements (or businesses) so that the performance of
the combination is higher than that of the sum of the individual elements
What can you do with one hand?
What can you do with two hands? Twice as much?
No! You can do much, much more! You can do absolutely new things, for
example, play the violin. That's synergy!
Creativity – Synergy of Your 3 Attributes
Joint Power of Four Horses
Two horses can pull about 9,000 pounds. How
many pounds can four horses pull? The arithmetical response is 18,000.
Sounds reasonable – but it's wrong! Four horses can actually pull over
30,000 pounds. It's synergy that makes the difference!
A corporation that builds on core competencies
utilizes skills that combine to strengthen value chains and build greater
competitive advantages. This leads to synergies among business units,
whereby they become more productive together than independently. The
collection of skills used in this situation is largely intangible, but
corporations can also build synergies by sharing tangible resources.
6Ws of Corporate Growth
"Integrated diversity" is a term used by
Jack Welch, the legendary
former CEO of GE, to define a learning culture. He described "integrated
diversity" as the elimination of boundaries between businesses and the
transferring of ideas from one place in the company to another. "Integrated
diversity means the drawing together of our thirteen different businesses by
sharing ideas, by finding multiple applications for technological
advancements, and by moving people across businesses to provide fresh
perspectives and to develop broad-based experience. Integrated diversity
gives us a company that is considerably greater than the sum of its parts,"
says Jack Welch.
Much of Toyota's success in the world markets
is attributed directly to the synergistic performance of its policies in
human resources management and supply-chain networks.
Toyota Production System