We’ve covered quite a bit over the last five posts. Hopefully you can see how incorporating some of these habits can be beneficial to your finances, at the very least, how they can be beneficial to your life in general. So, let’s move on to the next habit.

Habit # 6 – Synergize or The Habit of Creative Cooperation

The enemy of the best is the good.

- Voltaire

Don’t expect anything original from an echo.

- Dune Muncy

This particular habit has a lot of great quotes in it, and I’ll explain it by starting with one from Stephen Covey. He says,

“People who are truly effective have the humility and reverence to recognize their own perceptual limitations and appreciate the rich resources available though interaction with the hearts and minds of other human beings.”

What this comes down to is that your way may not be the only way to do things. By working with others, you can find new and better ideas than what you started with. The underlying principle is that the whole is greater than the sum of its parts. So, the ineffective paradigm that we need to rid ourselves of is that it’s either your way, my way, or a compromise.

Synergy isn’t about compromising. It’s much greater than that. Synergy refers to the fact that by working together “we” can create a better way, or a higher way; essentially, we can find what Stephen Covey calls a “third alternative.”

Why do you read books and blogs? If you had it all figured out, you probably wouldn’t read either. But, you come looking to share ideas with like-minded individuals who share similar situations to yourself. You seek guidance and understanding as you battle your debt. Even on this blog, we’ve talked about the many different methods that you can use to pay off debt. I don’t agree with them all, but I don’t condemn someone else for using them, either. Whatever works.

But, synergy doesn’t just talk about picking one method over the other. Synergy demands that we look at all the options available to us and come up with a separate alternative that is better than each of the other’s individually. I freely admit that I don’t do this enough. I’m an either/or kind of girl and when I got to this section of the seminar, it really caught my attention. Imagine the possibilities available to us if we all stopped to consider how we could synergize a particular process. Innovation, invention, better solutions, transformed relationships, and an appreciation of diverse perspectives are all benefits we experience when we synergize.

So, what does it mean to synergize?

Synergize is a process of interacting that gets you to synergy, or that “third alternative.”

Synergizing, as defined by the Franklin Covey company,  is:

- Results-oriented, positive energy

- Examining, exploring, and seeking different perspectives openly enough to alter or complete your paradigm

- Win-win cooperation

- Having a mutually agreed-upon end in mind

- Worth the effort and highly effective

- A disciplined process

It is not:

- A brainstorming free-for-all that leads nowhere

- Accepting others’ ideas as full truth

- Win-lose competition

- Always easy

- Just a negotiation technique

Remember, synergy is not compromise. It is a higher form where two parties seek to find an option that is better than all the rest.

So, synergy as it relates to finances. Here’s the thing. We all have our pride and sometimes we don’t want to admit we’ve made a mistake and need help. It happens to the best of us and it will keep happening long after we’re gone, I’m sure. But, there are those of us who’ve been down this path before and you don’t have to face being in debt, having trouble saving, or any other financial concern you may have, alone.

By being willing and courageous enough to take advice and give your input, you take the first step towards reaching synergy. Because some of us have been through the same challenges that you have, doesn’t mean you don’t have any insight to provide to the situation. This is why commenting on blogs is so great. It gives authors and readers a chance to interact, share ideas, and find alternatives.

That’s not to say that commenting on a blog is you reaching synergy. To be honest, reaching synergy may take more than a conversation to get to, and I think it is best achieved in a more personal setting. Let’s say you’re having trouble with your money. You go to a credit counselor with a plan in mind, but the credit counselor doesn’t feel your plan is strong enough to keep you committed to getting back on track. They propose another plan that seems too strict and binding for your budget. The natural course here is that you would compromise and find a middle ground that works for you both. By synergizing, both parties agree to search for a solution that is better than what either of you had in mind.

Step 1 to Synergy – Check Willingness

This is important. You must have the other person’s willingness in order to begin the process of synergy. There are a lot of reasons a person will not want to seek out a better alternative. The most common is trust. They don’t believe that your ideas are any better than theirs. Other common reasons for the lack of synergy include a lack of character, lack of skills, and lack of communication. Any one of these and more can prevent people from finding the best solution to a problem.

Using our example above where you’re working with a credit counselor to improve your credit and financial stability, you would want to explain to them that you’re not looking for a simple compromise. You’re looking for a solution that is better than a compromise and you’d want to follow up with all the reasons you’re committed to making the counseling work. At that point, you would ask the counselor if they would be willing to search for that solution. If they agree, you move on. If they don’t, or if they seem to laugh at your suggestion, there is a “block” to synergy and you won’t achieve it while it stands in your way. You must build trust and ensure their confidence in your ability to stick to any plan both parties agree upon.

Step 2 to Synergy – Reflect Viewpoints

In order to reach synergy, you have to have open communication. In this particular step, both parties must mutually agree that neither can make their point until they have restated the other persons viewpoint to their satisfaction.

So, in our scenario with the credit counselor, you start by saying that their proposed scenario is too much of a strain on your current budget and you would feel more comfortable with a little breathing room. The counselor should then restate your point in their own words to reflect that they understand what you’re saying and where you’re coming from.

In turn, they make their point that by giving you too much breathing room, you may not take your repayment and repair plan seriously. Having a tight budget keeps you on a shorter leash with regard to your spending so you don’t go over. You would then repeat back their point in your own words until they are satisfied that you understand them.

This process continues until all points have been made and each side fully understands whether the other side is coming from.

Step 3 to Synergy – Create New Ideas

This step is where new ideas are proposed. In our continuing scenario, each party will propose ideas that could lead to the better solution. In order to achieve these higher solutions, both parties will need to think creatively and be open to suggestions from the other side. Since you are seeking better alternatives, your suggestions should not include any part of the original ideas that neither party agreed upon. If either party throws the same suggestions into the mix, then you need to go back to step one and recheck their willingness to reaching synergy.

There are a few things that can happen where you’ll know you’ve created that “third alternative.” When you both:

- Have a change of heart.

- Feel new energy and excitement.

- See things in a new way.

- End up with an idea that is better than what either of you started with.

Recap

Synergizing is about finding a better solution to a problem rather than settling for a compromise. In a compromise, each party gives something up in order to appease the other side. This is a great communication tool, and certainly effective in its appropriate use; however, sometimes a compromise just isn’t good enough.

Synergy applies to finances because often times we look at solutions to our problems as either this or that. We either do it the Dave Ramsey way or the Suze Orman way. Both are categorically different approaches to personal finance, but both have components that work. Some people even take a mish-mash of the two approaches. Synergy would be getting Dave and Suze in a room and letting them come up with solutions that reach beyond what either of them have previously advised. It’s simply about finding the better alternative.

What other areas of personal finance can you see synergy being effective? Do you think this is something you would be willing to do if faced with a situation of compromise?

Related posts:

1. The Seven Habits to Financial Success – Part IV
2. 7 Habits to Financial Success – Part V
3. 7 Habits to Financial Success… Part VII
4. The Seven Habits to Financial Success – Part II
5. The Seven Habits to Financial Success – Part III