A lack of collaboration hurts your bottom-line, so why don't we collaborate more?
Relationships are the currency of leadership, without people, an organization would lose its purpose and value. So why wouldn’t we want to increase our value by engaging in more positive relationships? I think it’s not up for debate, everyone would absolutely love to create more value through the relationships they form because poor collaboration reduces quality, productivity, and profits.
There’s been plenty of hype surrounding collaboration in industry sectors but does it actually have an impact as much as we think it does?
Collaboration has been found to increase the speed of project completion. Working together lets teams work faster and increases the amount of work they can take on. When collaboration doesn’t take place, businesses miss out on these advantages and their bottom line suffers as a result. For instance, Deloitte found that the productivity gains made from collaboration save companies $1,660 per employee annually. Even if you’re a small organization of 50 people, collaboration in the workplace might save you $83,000 every year.
Collaboration in doesn’t just keep teams happy. It’s also been proven to improve the quality of work produced.
Cisco, for instance, found that the more teams collaborate, the better their performance. And Deloitte, quantified the impact of collaboration on work quality. They found the annual value gained from collaboration is $2,517 per employee.
The opportunity cost of not collaborating is astounding. Deloitte estimates the net value of worldwide collaboration is $56 billion. The cost of not collaborating is more than just an opportunity cost for the business.
Failing to collaborate can actually cost lives. Manufacturing giant General Motors (GM) is an example of when poor collaboration in the workplace led to fatality. The inability of GM teams to collaborate with one another resulted in a faulty ignition switch to be used in its vehicles for almost a decade.
A review of why this error occurred came down two things:
The consequence of this poor collaboration – 124 lives lost. Plus a $575 million lawsuit and a $900 million fine. Poor collaboration cost GM $1.475 billion. Clearly, the data supports more collaboration but let’s also consider the barriers to achieving it.
What hinders us from collaborating more across industry sectors?
When teams don’t collaborate, quality and productivity are compromised and company profitability suffers. At best, organizations are inefficient, leaving money on the table and exposing themselves to displacement and competitors. At worse, as GM found out, people can die.
I pose the question to you, what is hindering us from collaborating more?