Synergy at work: Definition, types, and how to build

Business buzzwords often get criticized. Terms like freemium and hyper local are used so much that they start to lose their meaning. If you search online, you'll find many lists of the worst business buzzwords, and synergy almost always appears.

Synergy, like many business buzzwords, has lost some of its impact from overuse. Still, the word was created for a reason. In this article, we’ll explain what synergy means, why it’s important for your team, and how you can build it into your work.

What is synergy?

Synergy happens when people, teams, or organizations join forces to achieve more than they could on their own. The word comes from the Greek synergos, which means "to work together," and shows that the whole can be greater than the sum of its parts. In business, synergy is the extra value created when groups collaborate, whether that’s between departments, teams, or companies that have merged.

At its heart, synergy is about connecting, communicating, and working well with people from different teams. So why do people often make fun of this word?

History behind the synergy buzzword

The concept of synergy in business achieved popularity in the 1990s, when corporate executives and investment bankers used corporate synergy to gain buy-in for proposed mergers and acquisitions (M&As).

Corporate synergy is the additional value companies expect to gain from a merger. When two companies join together, they can create more value than they could separately. This often happens because larger, merged businesses can combine resources and cut costs, which leads to higher profits.

Corporate synergy isn’t only about mergers and acquisitions. It can also refer to situations in which one company sells another’s products or shares team members to help develop new products together.

In practice, corporate synergy, and especially financial synergy, which is when two companies merge finances, is hard to achieve. Combining two businesses and the entirety of what those businesses represent, including finances, employees, products, culture, and practices, takes a lot of time and effort. Without the right change management process, the M&A process can fail to deliver its intended benefits. This is called negative synergy.

The excitement around corporate synergy during mergers and acquisitions, along with the problems that sometimes followed, led to synergy being seen as just another buzzword today.

Why team synergy matters

It’s one thing to know what synergy means; understanding why it matters to your team is what makes it useful. When teams truly achieve synergy, the benefits go far beyond just working well together.

• Boost productivity. When team members understand each other's strengths and work styles, they can divide work more effectively and avoid duplicating effort. Synergy helps your team get more done with the same resources.

• Drive innovation. Diverse perspectives are the foundation of creative thinking. When people feel comfortable sharing ideas and building on each other's input, your team is more likely to tap into collaborative intelligence and come up with solutions that no one individual could produce alone.

• Improve morale and retention. People want to feel like they're part of something meaningful. Teams with strong synergy tend to have higher job satisfaction because every member can see how their unique contribution fits into the bigger picture.

• Strengthen alignment. Synergy connects day-to-day work with broader goals. When your team collaborates effectively, it's easier to stay focused on what matters most and make sure everyone is pulling in the same direction.

In short, team synergy turns a group of individuals into a high-performing unit. While it doesn't happen overnight, the payoff is well worth the effort.

Types of synergy in business

Not all synergy looks the same. The term is used across different business contexts, from corporate mergers to cross-functional team projects. Understanding the main types helps you recognize where collaboration can create the most value.

How is synergy related to teamwork?

At its core, synergy describes working together to produce great results. Though this term was co-opted by corporate executives, it doesn't, as a rule, refer to mergers and acquisitions. After all, the term comes from ancient Greek and was used in practice as early as the 1600s.

Team synergy takes the idea that the whole is greater than the sum of its parts and applies it to teamwork. This positive synergy enables team members to be their full selves at work, with their unique life experiences, perspectives, talents, and communication styles. By leaning into each person's unique strengths and giving them opportunities to learn from one another, your team can achieve much more together than they would on their own.

The difference between synergy and teamwork

Teamwork and synergy are related, but they're not the same thing. Think of teamwork as the activity and synergy as the outcome you're working toward.

The difference between diversity and synergy

Diversity is about how different or similar your team members are. The more varied their experiences, backgrounds, perspectives, and beliefs, the more diverse your team becomes.

But we know that simply valuing diversity isn't enough. That's where business initiatives like Diversity and Inclusion programs (D&I) come into play. Committing to a diverse team means doing the work to build a more equitable and inclusive environment.

Team synergy is about putting diversity into action. It’s not enough to have a diverse team; you also need to encourage teamwork and open communication. When people can be themselves at work, they work together better and create real synergy.

Ways to build team synergy

Team synergy leads to strong teamwork and great results. Like any skill, it takes time and effort to build. Here are some ways to help your team develop synergy:

1. Start with communication

The core of any strong working group is communication, especially for diverse teams. The value of a diverse group comes from the differences of opinion and experience that team members bring to the table, but they need to feel comfortable expressing themselves to share those perspectives. With effective workplace communication, team members can express themselves freely and more effortlessly achieve synergy.

To start building good workplace communication skills:

• Establish where your team should communicate, and about what. When team members understand where to communicate, the barrier to doing so is lower. If you haven't already, set and share a communication plan with your entire team.

• Make two-way communication a priority. Being a good team member means listening to others, not just sharing your own ideas. Encourage your team to practice active listening to build this skill.

• Differentiate between facts and stories. "Facts vs. stories" is a conscious leadership technique. "Facts" are observable details, such as who attended a meeting. A "story," on the other hand, is your interpretation of the situation. By separating stories from facts, you can avoid acting on stories until you're able to validate them.

2. Foster trust and collaboration

In addition to knowing how to communicate effectively, team members also need to feel comfortable doing so. Make sure you're making space for team members to bring their full selves to work by modeling team collaboration best practices.

To foster collaboration:

• Work on ideas as a group. Team synergy means creating things together that no one could do alone. Instead of just assigning group projects, hold brainstorming sessions, encourage discussion, and welcome different opinions. True collaboration is about building ideas together, not just dividing up tasks.

• Encourage open communication. Team members should feel comfortable expressing their feelings, sharing their opinions on projects, and disagreeing with others. We often treat disagreements like a bad thing, but healthy disagreement is actually key to good team collaboration.

• Lead by example. It takes time to build team collaboration, but the best way to get started is to model the behavior you want to see in your team. Make sure you're always inviting collaborative input and welcoming new opinions, and you'll start to see your team do the same.

3. Set group norms intentionally

Group norms are the unspoken rules that guide how team members interact. Even if you don't set group norms, they will naturally develop as your team works together. Left unchecked, group norms can lead to practices that make team members uncomfortable and, ultimately, to poor group dynamics.

By deliberately setting group norms, you help your team work together more easily. Making these rules clear removes confusion, so people can focus on working together instead of worrying about what’s expected.

To avoid that, proactively set group norms. For examples of how team leads set group norms, read our article on tips to create group norms for high-performance teams, with examples from 7 Asana managers.

4. Recognize and celebrate wins

Synergy grows when team members feel appreciated for their contributions. Recognizing teamwork encourages the habits that build synergy. Celebrating wins can be simple:

• A quick shout-out during a team meeting

• A shared message highlighting a cross-functional success

• A brief retrospective focused on what went well

Recognition also keeps your team motivated. When people see that working together leads to real results, they’ll want to keep collaborating. Make celebrating wins a regular habit, not just something you do after big projects.

Signs your team has achieved synergy

Building synergy takes time, but there are signs your team is making progress. Here’s what to watch for:

• Seamless collaboration. Team members proactively offer help and share knowledge without being asked. Work flows naturally between people, and handoffs feel smooth rather than disjointed.

• Open, honest communication. People feel safe sharing their opinions, raising concerns, and giving feedback. Disagreements are treated as opportunities to find better solutions, not as conflict.

• Consistent, high-quality outcomes. The team regularly delivers work that exceeds what any individual could produce on their own. There's a noticeable lift in quality and creativity when the group works together.

• Strong trust and accountability. Team members trust each other to follow through on commitments. Everyone takes ownership of their responsibilities and steps up when something needs fixing.

• Shared sense of purpose. The team feels connected to a common goal and understands how each person's work contributes to the bigger picture. There's genuine investment in each other's success.

If you notice these signs, your team has moved from just cooperating to real synergy. If not, the tips above can help you get there.

Build synergy that drives real results

Synergy is more than just a trendy word. When your team has real synergy, everyone can work together smoothly and achieve their best results. Start with clear communication, build trust through genuine collaboration, and ensure everyone’s strengths are used.

Ready to help your teams collaborate more effectively? Asana gives your team one place to plan, track, and manage work together, so you can focus less on busywork and more on the work that matters. Get started.

For more tips on how to enable great teamwork, read our article on 45 team building games to improve communication and camaraderie.

Frequently asked questions about team synergy