Synergism

Definition
A synergy is where the whole is greater than the sum of its parts. In other
words, when two or more people or organizations combine their efforts, they can
accomplish more together than if you added their accomplishments achieved
separately. We can get more done working together than we can get done working
apart. In mathematical terms, a synergy is where 2 + 2 = 5. Negative synergies also
exist. If there is a negative synergy, the whole is less than the sum of its parts. In
other words, we can actually accomplish more by working alone rather than
working together. In mathematical terms, a negative synergy is where 2 + 2 = 3. An
easy example is an overly social work team that spends too much time 'team
building' and not enough time working.
According to the American Heritage Dictionary, the term "synergy" is
derived from the Greek word sunergos, meaning "working together." Synergy, also
known as synergism, refers to the combined effects produced by two or more parts,
elements, or individuals. Simply stated, synergy results when the whole is greater
than the sum of the parts. For example, two people can move a heavy load more
easily than the two working individually can each move their half of the load.
Synergy can be a positive or negative outcome of combined efforts.
Organization Synergy occurs when people and processes merge seamlessly
to continuously expand the ability of the organization to deliver products and
services to its customers, while maintaining competitiveness. Synergetic results
come from a culture that enables an organization to integrate its diverse skills and
capabilities in a way that makes it possible to achieve outstanding results that were
unpredictable when looking at each division of the organization independently.

A Process for Building Organizational Synergy

Before people can create and maintain synergistic relationships, two things
must occur:
They must be willing to engage this way with others

They must demonstrate the abilities associated with a four-phase model:

Interacting, Appreciative Understanding, Integrating, and Implementing.

The Willingness to Engage A Prerequisite for Synergy

Dramatic change brings to the surface many divergent views about the
direction of the transition and how it should unfold. Healthy nonconformity and
oppositional thinking are essential aspects of the creative process when
breakthrough problem solving and innovation is called for. However, contending
with different perspectives, if not managed properly, can also be energy draining
and counterproductive. The motivation to pursue, rather than circumvent, divergent
opinions stems from people who share three views:

The seriousness of the circumstances they face

Their common goal(s)

A sense of interdependence with each other

Synergistic relationships are not easy to develop and maintain. As a result, most
people are willing to invest whats needed only if a significant positive upside can
be gained and/or a negative downside avoided. If this is the case, a common goal
can set direction. When individuals and/or groups share the same desired outcome,
their energies and actions can become powerfully focused on the activities
necessary to achieve that result. When a common goal is at the center

of committed action, fewer resources are wasted on hidden agendas or activities

inconsistent with realizing the goal. Interdependence is also needed to set the stage
for meaningful unified action. The willingness (motivation) to work with others
sets the stage for the actions needed to achieve the synergistic advantage. Those
involved in major endeavors must also demonstrate specific abilities related to how
they develop their ideas and implement their action plans.
The Ability to EngageThe Four Phases of Synergy
The synergistic process is distinguished by four skill sets:

Interacting: Synergistic communication occurs when diverse perspectives,

ideas, meanings, attitudes, feelings, and values are expressed and received openly
and honestly in a supportive environment.

Appreciative Understanding: This is a nurturing atmosphere characterized

by people who recognize and value their distinct frames of reference regarding the
task at hand.

Integrating: Only when appreciative understanding is established can

individuals seek ways to merge or combine their separate views into mutually
supportive patterns for thinking and acting. It is during this integration phase that
individuals invent and experiment with creative ways to move beyond their current
thinking.

Implementing: Merely finding innovative approaches to integrate various

viewpoints is not enough. It is only through active planning, goal setting,
discipline, and consistent application of various change facilitating methods that a
transition can be successfully achieved. Without a structured implementation plan,
the likelihood is low that a synergistic advantage will occur.

The table below outlines what is necessary for key players to generate a
synergistically implemented change.

Synergism followed by Nokia and Microsoft as an example:

Microsoft Corporation and Nokia Corporation on Sept. 3, 2013 announced
that the Boards of Directors for both companies have decided to enter into a

transaction whereby Microsoft will purchase substantially all of Nokias Devices &
Services business, license Nokias patents, and license and use Nokias mapping
services. Under the terms of the agreement, Microsoft paid EUR 3.79 billion to
purchase substantially all of Nokias Devices & Services business, and EUR 1.65
billion to license Nokias patents, for a total transaction price of EUR 5.44 billion
in cash. Microsoft drew upon its overseas cash resources to fund the transaction.
The transaction was expected to close in the first quarter of 2014, subject to
approval by Nokias shareholders, regulatory approvals and other closing
conditions. Building on the synergism with Nokia announced in February 2011 and
the increasing success of Nokias Lumia smartphones, Microsoft aimed to
accelerate the growth of its share and profit in mobile devices through faster
innovation, increased synergies, and unified branding and marketing. For Nokia,
this transaction was expected to be significantly accretive to earnings, strengthen
its financial position, and provide a solid basis for future investment in its
continuing businesses.
It was a bold step into the future a win-win for employees, shareholders
and consumers of both companies. Bringing these great teams together accelerated
Microsofts share and profits in phones, and strengthened the overall opportunities
for both Microsoft and their partners across their entire family of devices and
services.

Microsoft chief executive officer said, In addition to their innovation and

strength in phones at all price points, Nokia brought proven capability and talent

in critical areas such as hardware design and engineering, supply chain and
manufacturing management, and hardware sales, marketing and distribution.
Building on our successful partnership, we can now bring together the best
of Microsofts software engineering with the best of Nokias product engineering,
award-winning design, and global sales, marketing and manufacturing, said
Stephen Elop, who was stepping aside as Nokia President and CEO to become
Nokia Executive Vice President of Devices & Services. With this combination of
talented people, we have the opportunity to accelerate the current momentum and
cutting-edge innovation of both our smart devices and mobile phone products.
TERMS OF THE AGREEMENT
Under the terms of the agreement, Microsoft acquired substantially all of
Nokias Devices and Services business, including the Mobile Phones and Smart
Devices business units as well as an industry-leading design team, operations
including all Nokia Devices & Services-related production facilities, Devices &
Services-related sales and marketing activities, and related support functions. At
closing, approximately 32,000 people are transferred to Microsoft, including 4,700
people in Finland and 18,300 employees directly involved in manufacturing,
assembly and packaging of products worldwide. The operations that were planned
to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost
50 percent of Nokias net sales for the full year 2012.

Together in synergism