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Sometimes, the synergy programs actually backfire, eroding customer relationships, damaging brands, or undermining employee morale.
In combination with the parenting bias, the skills bias dooms many synergy programs.
Continuous engineering within Airbus has included various corporate and divisional Synergy programs and lean and agile initiatives.
As the pizza problem shows, viewing cooperation as an unalloyed good often blinds corporate executives to the negative knock-on effects that may arise from synergy programs.
The goals of synergy programs tend to be expressed in broad, vague terms: "sharing best practices," "coordinating customer relationships," "cross-fertilizing ideas". In addition to cutting off debate who, after all, wants to argue against sharing?—such fuzzy language obscures rather than clarifies the real costs and benefits of the programs.
Of course, most firms will incentivize business generation accordingly, but formally creating and implementing sales, marketing and cross-practice synergy programs along with allotting significant resources to education and attorney development in all of these areas are a different matter altogether.
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When a synergy program founders, it is usually the business units that take the blame.
A final discipline is in order: looking carefully for any collateral damage that may occur from the synergy program.
They rarely take into full account the opportunity costs of a synergy program, particularly the costs that result from not focusing management's time and effort elsewhere.
A corporate-led synergy program may, for example, help or harm an effort to instill employees with greater personal accountability for business performance.
If, for example, unit managers believe that the opportunity costs of a synergy program outweigh its benefits, forcing them to cooperate will make them even more skeptical of synergy.
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