Corporate synergy signifies that the whole of an organization is worth more than the sum of each of its individual parts. Together, more can be accomplished than each working individually.

Corporate Synergy: Business Terms
Corporate Synergy: Business Terms

Perhaps one of the most common corporate buzzwords we hear today is synergy. The concept of corporate synergy is that as a whole, the amount an organization is worth is much more than the sum of all of the individual contributors.

For example:

If there is a company with five employees who are each worth one point – the sum of the company’s worth is five. However, when working together and synergized, ideas will be bounced off each other, spawning new ideas and perfecting existing ones. This process allows the company of five employees, each with a value of one point, to be worth 10 points when synergized. This does not mean that each employee is now worth two points, because the additional value only comes when the company is functioning as a whole. In the simplest terms, synergy can be summed up by the old saying, "Two heads are better than one".


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