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The Secret of Success: Synergy is Everything, Without Synergy Everything is Nothing

The world is currently experiencing digital transformation and a significant shift towards ecological sustainability and a green economy. Business conditions are changing at an incredible pace. The development of technology requires managers to constantly monitor trends and innovations to remain competitive. Growth alongside digital transformation necessitates adaptation, agile teams, and above all, an understanding of the purpose of digital technology.

At the same time, employee awareness is also changing. New generations bring new rules. The traditional hierarchical approach to management is becoming less popular, and agile methods that accelerate adaptation to changes are increasingly accepted, enhancing employee autonomy and fostering teamwork. Precisely because all these factors intertwine in modern business, managing a company is becoming increasingly challenging, and it is becoming clearer that one of the most important secrets to success is synergy.

Synergy, by definition, denotes a situation where the combination of different elements creates greater value or benefit than what each could achieve individually. This means that when different resources, knowledge, skills, or competencies come together and act in concert, the result is improved efficiency, productivity, or fantastic innovations.

Although long desired in the business world, it has never been as crucial for survival as it is now. The knowledge that is now sought exceeds the capabilities of any individual. Only teams of competent individuals who live their idea and are committed to common goals can succeed. While it seems utopian, it increasingly appears that this will be the only possibility for survival in the future. What synergies are most important today?

Synergy Among Teams/Departments

Companies traditionally still operate in silos (departments) that are hierarchically organized, each with their own plans and tasks. It is quite common for silos to not communicate with each other, leading to significant gaps between them (even among departments that are natural relatives, such as sales and marketing, procurement and production, and similar).

On the other hand, for companies to develop today and in the future, a different organization is necessary that implies teamwork across multiple departments simultaneously. Today, the closest model to this is a project organization. This is how silos between different functions are broken down, enabling more intense communication and thus countless opportunities that had previously been unjustly neglected.

Synergy Between Leadership and Employees

The fundamental characteristic of such synergy is communication. We have never talked more about communication, yet it seems that there has never been less of it. As a consultant for implementing controlling, I often find myself in a position to encourage managers: ‘Talk to people.’ And there is a good reason for this. Implementing controlling is a fantastic process of preparing for digital transformation because it equally requires the servicing of processes. In most cases, as soon as one scratches the surface, it becomes clear that processes are not agreed upon, are mostly random, and developed at the discretion of individuals rather than guided by the logic of synergy with other processes. Talking to people in this sense means gathering teams from various departments, debating, encouraging brainstorming about what we want to achieve, and agreeing on a common tactic.

Unfortunately, many managers automatically equate this with micromanagement, but it is far from the same. The goal of the conversation is not to lecture employees on how to do something, but to reach a consensus on the goals to be achieved and the ways to achieve them multifunctionally. Once a consensus is reached, the process is not established by decree but becomes an agreed-upon rule of conduct that is best written in a large format and placed on the wall as a common promise directed towards success. Management thus encourages employees to take responsibility for their work and supports initiatives and creativity, which certainly contributes to greater productivity and innovation.

Controlling – Key to Results

The synergy between managers and employees is also evident in providing feedback (feedback). Regular feedback from management helps employees better understand their strengths and areas for improvement, while management can better understand the challenges faced by workers. Caring for employee development, providing opportunities for training, improvement, and professional development demonstrates their importance to the organization and increases motivation and engagement.

We must not forget the importance of rewarding employees and recognizing successful work. In our practice, a quality reward system is, unfortunately, a true rarity. If it exists, it is often not good. The path to a quality reward system is paved with good intentions, but often leads to hell rather than a fair distribution of rewards. One reason for this is the lack of a quality and stable information system about results that comes from a single source of truth. In other words, there is no controlling.

Synergy of Technology and People

Technology is not an end in itself; it exists to achieve the best results in combination with human desires, needs, knowledge, and skills. This synergy is problematic due to the frequent disparity between the speed of technological development and the ability of users who need to benefit from it. The best examples can be seen in medicine: high-tech devices are available that enable perfect findings, but at this moment, the human eye does not sufficiently understand them and struggles to read them, so without the support of artificial intelligence in diagnosing, they cannot be adequately utilized.

The synergy that is achieved much faster is that which employs tools that can automate simple and routine tasks, allowing people to focus on creative, analytical, and strategic activities that require human intelligence. Good synergy is already being achieved in the domain of communication tools that enable people to communicate and collaborate faster regardless of physical distance. The internet allows for quick and broad access to information and knowledge, making many forms of education available to the majority. For us in controlling, technology enables the collection and analysis of large amounts of data, helping management make informed decisions. In the future, technology will certainly assist people in developing products, services, and solutions that do not yet exist, and this will be done with flexible working methods (remote work), helping people better align their professional and private lives.

When two companies combine their resources to achieve synergistic advantages such as reduced costs or expanded markets, miracles can happen. What are all the resources? Markets, technologies, knowledge and skills (know-how), information, money, infrastructure, people, management methods.

Collaboration Among Companies

What are synergistic advantages? Through carefully built synergy with smartly agreed goals and good communication, complementary products or services can be obtained, joint research and development, market sharing, sharing distribution networks, joint marketing campaigns, or joint support services (accounting, finance, controlling, HR, IT, legal services, etc.), all of which increase innovation, efficiency, productivity, strength, and thus competitive advantage.

Social and Ecological Synergy

One of the undoubtedly most complex and important synergies that is most talked about and written about today is that which relates to achieving a balance between social needs and environmental care. This type of synergy implies aligning the need for environmental preservation, improving the quality of life, and societal well-being. It prioritizes sustainable management of resources such as water, energy, or forests and promotes technologies that minimize negative environmental impacts, such as renewable energy sources.

But the synergy does not end there. It also includes caring for employees, customers, and other stakeholders, respecting human rights, promoting diversity and inclusion, ensuring psychological safety, and supporting the broader local community and overall societal well-being. Just looking at all the elements that encompass this area, it is clear that humanity will be dealing with these synergies from now until eternity, and it is up to us to make the most of the time we have been given.

Concrete Benefits

The fact that synergy is a key factor in achieving success has never been more evident. In today’s business environment, isolated efforts often waste a lot of unnecessary resources, failing to reach the necessary level of creativity and innovation, which is crucial for achieving extraordinary results. Without coordinated efforts and combined strengths, even the most powerful ideas can remain unarticulated and unrealized.

Therefore, investing in the development of synergy within teams, among companies, or even more broadly not only brings concrete benefits but also ensures a lasting presence on the path to success in today’s dynamic business world.

The article follows the themes of the 11th International Conference on Controlling, the largest controlling conference in Croatia, which will be held on November 17, 2023, at the Sheraton Zagreb Hotel, organized by the consulting company Kontroling Kognosko and Lider.

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