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What The Lack of Collaboration Costs Your Company

What The Lack of Collaboration Costs Your Company “Collaboration” might seem like a fuzzy term to many leaders. Yet the costs of poor collaboration are concrete, and can be quite painful. The business press frequently reminds us of this fact.

For instance, a defective ignition switch at General Motors is costing the company at least $2.7 billion dollars. The automaker spent $680 million to repair, rework, or replace parts and keys in about 12.1 million cars. In addition, lawsuits are coming that are demanding $10 billion for fallen car prices and other damages, of which GM is estimating $2.7 billion in total costs. A consulting report concluded that the cause of the defect stemmed from a silo-based culture that covered up issues and did not collaborate well.

To give an example, many organizations have skilled employees that have spent years learning a specific function, but have not learned how to collaborate on teams. As a result they are not as effective as they could be at relating to others, conveying their ideas with impact, and getting what they want while helping others achieve their goals, too. Therefore, teams do not perform as well as they could. Projects stall. Multiply this effect across the organization, especially when teams have to work cross-functionally, and the results can hurt an organization’s competitive position.

As organizations become larger and/or more complex, collaboration becomes a core skill that every leader, team, and business unit must be able to have. In some cases, this means structuring the organization to make collaboration easier. In other cases, it means equipping managers and employees with new attitudes and behaviors.

Inspired Business Services has a proven approach and methodology to help your organization excel at collaboration, whether within your organization or at building alliances outside your company. Contact us today at to learn more.

Do you want to complete a quick review of your organization? If so, click the button below to find out if your organization needs a Collaboration Tune up.

Find out if your organization needs a Collaboration Tune up