Synergy (Virtuous Moves)

Synergy is the qualifier for staying in the virtuous cycle. Without investing in synergistic moves, an organization slides into a vicious cycle. It is a great phenomenon.

Illustration for synergy

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The Internet serves as a powerful synergy of our time.

Synergy

“Good tactics can save even the worst strategy. Poor tactics will destroy even the best strategy.”

By General George S. Patton Jr.

Synergy (Virtuous Moves) definition and its Brief History

Synergy permeates human life in all organizations in different forms, and it is ubiquitous in every activity we do in our daily routine and novel business endeavor. Tactics (synergy), which are very important, as General George S. Patton Jr. posits in the above quote.

Historical Synergy Definition

Leadership Gurus defined synergy as given below.

Study.com defines synergy as “where the whole is greater than the sum of its parts. When two or more people or organizations combine their efforts, they can accomplish more together than they can separately. They can get more done working together than they can working apart. In mathematical terms, a synergy is when 2 + 2 = 5,” ¹ .

Also, defined in a negative way: “Negative synergies also exist. If there is a negative synergy, the whole is less than the sum of its parts. People can actually accomplish more by working alone rather than working together. In mathematical terms, a negative synergy is when 2 + 2 = 3. An easy example is an overly social work team that spends too much time ‘team building’ and not enough time working,” – ibid.

Wikipedia.org defines synergy similarly: Synergy is an interaction or cooperation giving rise to a whole that is greater than its simple parts. The term synergy comes from the Attic Greek word συνεργία synergia from synergos, συνεργός, meaning “working together” ².

Historical Synergy  vs Ultimate Enterprise Synergy

The above two synergy definitions cast the orientation of the current meaning of the word. The meaning bases on historical background and the way synergy started. Leaders of ancient leadership used to gain synergy when they merged on the corporate level. The current world has now changed massively. Diverse synergy opportunities came along. Ultimate Enterprise synergy changes in the same direction, and the about four (4) synergistic opportunities identified briefly detailed below. Also, Ultimate Enterprise will not consider negative synergies because it calls for a different issue.

Let us start by defining synergy in a business context.

Synergy: any power opportunity utilization for organizations aspiring to competitive advantage (CA) in business by indefinitely operating in virtuous circle.

Synergy Details

Ultimate Enterprise synergy (UE-Synergy) definition is realistic about organization actions, i.e., it’s calls for aspirations which sometimes do not materialize, ending in discord. Cognizing or gaining synergy is no panacea; leaders need proper design and conduct to achieve CA. This is why negative synergy does not fit in UE Synergy as posited above. This world has plenty of firms operating in Vicious Cycle while possessing enormous natural resources as synergy. However loses its synergistic power into discord. Phenomenon about utilizing synergy efficaciously is FI (Functional Invention) discussed later in R&D Link.

As a rule of thumb, synergy manifests into being when an organization operates in a virtuous cycle. When a business operating in a vicious cycle runs into endless vicious cycle loops until some deliberate actions are taken, usually by leaders from PUER.

The power of Synergy (virtuous moves)

Take any country (organization) among the ten-least-developed nations; consider one loop only. Salary scale as compared to available natural resources. Low salary > plenty of natural resources, > squander natural resources, > fight for natural resources, > stay-poor, > high corruption, > beg from donors, > low-salary (completing the loop). Begging from donors lay in recuperating stage, which keeps them surviving and neglecting the correct course of re-engineering.

Empower an Organization from vicious-cycle into virtuous-cycle

Shifting a company from vicious-cycle into virtuous-cycle calls for complex task; it needs leaders/managers from PUER, preferably higher zones. first task is breaking the chronic and intense group-think territory emerging from CUER. second duty is to mobilize the work-force into PUER; third is designing virtuous-circle loops in order to thrive—prominent leaders create breakthrough in organizations this way. Similarly, most oratory-leaders cannot rescue organizations because they keep on mismanaging organizations by copying and planting virtuous-loops into their vicious-cycle with infinite failures. On each failure, they defend using their groupthink filthy power.

Synergy (Virtuous Moves) Opportunities

Synergy simulates power as discussed in Organization Structural Power section above, where for ease of access the definitions briefly redefined. At an organization level, firms gain power with their sources classified in the similar organization structural power, which depicts a universal set of internal and external parameters that give rise to organizational performance power. organization operates in a high-power or low-power state.

These parameters include:

• Organizational Synergistic variables
• Organizational Synergistic dyad Variables
• Within Organization Synergistic Variables and
• Between Organization interactive Variables.

Organizational Synergistic Variables

Organizational synergistic variables are synergistic variables regarding an organization’s synergistic characteristics. They are in two major categories: one Organizational Character zone and two High-Performance Financial Awareness.

Synergistic Organizational Character Zone

Deals with an organization’s interactive method of aligning the company into PUER. This is a fundamental business synergistic method because the other three synergistic categories rely on it.

Synergistic High-Performance Financial Awareness

Call it Cash flow involves decision-making processes in monetary investing skills. It is about asset vs. liability secrets; it is powerfully influencing synergy because of its latent action toward synergy or discord. Some leaders invest liabilities instead of assets, sometimes because of ignorance or CUER

Organizational Synergistic (Synergy (virtuous moves) disease Variables

Variables about an organizational power that depend on the redefined third-party desires. This denotes synergistic power satisfying customer requirements. Remember the Madison Avenue Techniques discussed earlier, meaning that customers do not buy attributes; they buy imagined experiences; they buy images; they buy prestige. Therefore, organizational synergy occurs when leadership/management creates the desired customer prestige. 

Within organizational Synergistic Variables,

Organizational interactive variables concerning system processes, mainly business systems, corporate strategy, and culture (as a strategy—the operating business-model and its plan). With the invention and ubiquitous use of the Internet, organizations have gained a new synergistic dimension by employing Information Systems that empower organizations to additional levels and depth.

Synergistic Organization Culture

Organizational moves target uniting the company together, thus getting a competitive advantage. This is the requirement of motivation skills already discussed in Motivation sub-section. From within organization interactive methods, the next type is between organization synergistic variable.

Between Organization Synergistic Variables

Interactive variables operating across organizations, such as Organizational Empowerment and business environment. Merger is among organizational empowerment variables, a famous and highly confused and taken to be a universal synergistic method in this category.

Merger

A famous, long-discussed and practiced synergistic method in business and industry, but with fuzzy implementation causing huge consequences within companies. Merger bears varied definitions as quoted below:

A simple definition: “Merger is the combining of two or more companies by offering the stockholders of one-company securities in the gaining company for the surrender of their stock.”

Business Environment

Means the external forces influencing the business decisions; they can be political, social, technological, or economic factors. These factors are outside the control of the business, which can do little to change them. business environment has three characteristics, namely dynamic, uncertain and relative. It is dynamic because they keep on changing, whether in terms of technological improvement, shifts in consumer preferences or entry of new competition into the market. They are uncertain because they is difficult to predict future happenings, especially when environmental changes are taking place too frequently, as with information technology or fashion industries. Relative because they differ from country to country and even region to region.

Business environment: Three Characteristics

These characteristics define synergy when leaders (1) scan their particular environment when find business opportunities; when they act immediately, it rewards them by the first-mover advantage. Early identification of opportunities synergies an enterprise to be the first to exploit them instead of losing them to competitors. 

Improved performance to customers: the enterprises that continuously monitor their environment and adopt suitable business practices gain synergy, which not only improves their present performance but also continues to succeed in the market for a longer period. business environment is complex. Calls for efforts for mitigating methods proposed to categorize into groups tackled separately. Groups are (1) definitive or (2) indefinite forces, detailed below.

Definite Business Environment Forces

Affect individual enterprises directly and immediately in their day-to-day working; these are like investors, customers, competitors and suppliers. This force has been on the center of attention to leaders, thus receiving enormous investments. Good leadership can control it, preferably using a sound Research & Development Department–R & D, whose duty is tracking the customer’s desires, which behave as a moving target.

Indefinite Business Environment Forces

Has a tremendous impact and complex influence on enterprises development because it affects firms indirectly. Indefinite Business Environment Forces are like social, political, legal, and technological conditions. Reacting to such complexity, world visionaries keep looking for their mitigation services to our world. One of these is the World Economic Forum since 2005, and this forum introduced a competitiveness analysis on the Business Environment called Business Environment Index (GCI).

Business Environment Index (GCI)

Highly comprehensive for measuring national competitiveness, which captures the microeconomic and macroeconomic foundations of public effectiveness. “Competitiveness is the set of institutions, policies, and factors that determine the level of productivity of a country.”

Economies that are more competitive can produce higher levels of income for their citizens. The productivity level also determines the rates of return got by investments (physical, human, and technological) in an economy. Because the rates of return are the fundamental drivers of the growth rates of the economy, a “more competitive economy is one that is likely to grow faster in the medium to long run”—Schwab, Klaus³. The GCI got by including a weighted average of many components, each measuring a different aspect of competitiveness.

Conclusion

This concludes the Synergy Link, which proved to be one of the critical links in business. Diverse organizations have been suffering from utilizing these basic facts taken for granted by leaders that, when applied efficiently, can serve business life. The next link connected to synergy is management as the business aim.

1. https://study.com/academy/lesson/synergy-in-business-definition-examples-quiz.html accessed on 9-2-2021 ↩︎
2. https://en.wikipedia.org/wiki/Synergy accessed on 2-9-2021. ↩︎
3. Klaus Schwab, The Business Environment Report 2010-2011 © 2010 World Economic Forum ↩︎