synergy

play

noun syn·er·gy \ ˈsi-nər-jē \

Updated on: 26 Jul 2017

Definition of synergy

plural synergies

1 :synergism; broadly :combined action or operation

2 :a mutually advantageous conjunction or compatibility of distinct business participants or elements (such as resources or efforts)

See synergy defined for English-language learners

Examples of synergy in a Sentence

A synergy has developed among the different groups working on this project.
two companies that have found synergy

Recent Examples of synergy from the Web

Total expects to generate synergies of more than $400 million a year starting in 2020, in particular by combing the two companies’ North Sea assets.

— alex fitzpatrick, Fortune, "Total Chases Growth With $5 Billion Purchase of Maersk Oil," 21 Aug. 2017
Marchetti roams around the building feeding off the synergy of his coworkers.

— nikki delamotte, cleveland.com, "After working at Yelp and Yahoo, Mike Marchetti looks to grow startup culture in Cleveland," 10 Aug. 2017
There should be a healthy synergy between the academic world and the professional/artistic world.

— jennifer brett, ajc, "Kenny Leon teams up with Kennesaw State University," 10 Aug. 2017
In a remarkable piece of advertising synergy, Trump made good on the promise in the brochure the weekend after Holson published her article.

— jeremy venook, The Atlantic, "Trump’s Interests vs. America’s, Vancouver Edition," 13 July 2017
There's no denying the synergy between Thomas and Drew Brees.

— larry holder, NOLA.com, "New Orleans Saints 2017 roster rankings: No. 3 Michael Thomas," 12 July 2017
The new head of FS1 will have to figure out how to make the synergy between Fox Sports’s remote or event production (the group that produces live sporting events) and FS1’s studio shows more palatable.

— richard deitsch, SI.com, "Fox Sports not planning to tone down the noise after Jamie Horowitz's firing," 6 July 2017
Such was the synergy between the values of the brand and the values of the nation that spotting a Marimekko print on the street could be likened to seeing the Finnish flag flying.

— laura houseley, CNN, "Celebrating 100 years of innovative Finnish design," 6 July 2017
This is synergy, mutualism and adaptation awaiting rediscovery on the mainland.

— the new york times, NOLA.com, "Walter Anderson's Horn Island off Mississippi remains a 'natural reality'," 4 July 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'synergy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Did You Know?

An old saying, "The whole is greater than the sum of its parts", expresses the basic meaning of synergy. The word is sometimes used in a purely physical sense, especially when talking about drugs; sometimes a "cocktail" of drugs may be more effective than the sum of the effectiveness of each of the separate drugs. But the word is best known in the world of business. The notion that, when the right two companies merge, they'll produce a profitable synergy seemed exciting in the 1990s, when synergy became a trendy buzzword (even though it's actually been around since the 17th century). The idea of synergy was one factor in what became a "merger mania;" unfortunately, business synergy often turned out to be harder to achieve than to imagine.

Origin and Etymology of synergy

New Latin synergia, from Greek synergos working together

NEW! Time Traveler

First Known Use: 1632

See Words from the same year

Other Biology Terms

autochthonous, fecund, homunculus, phylogeny, substrate

Financial Definition of SYNERGY

synergy

noun

What It Is

Synergy is the benefit that results when two or more agents work together to achieve something either one couldn't have achieved on its own. It's the concept of the whole being greater than the sum of its parts.

How It Works

Synergy is often one of the goals of a merger or acquisition. The two firms combined may be able to achieve higher profitability than either firm could achieve on its own. Synergy can be reflected in increased revenues and/or lower expenses.

For example, a company may acquire a similar firm, allowing it to expand its product offering and, as a result, increase its sales and revenues. This could not have been accomplished had the two firms remained independant.

In management, synergies may be created between management teams, resulting in increased capacity and workflow that was not possible when the teams were working independently.

As for costs, synergies allow for the creation of economies of scale. For example, a merger can reduce multiple levels of management and duplication and spread fixed cost technologies over larger operations.

Why It Matters

Synergies may be elusive, but they are one of the most important objectives in business. To acquire synergy will result in more efficiency, more efficacy and higher profitability.

Source: Investing Answers