20 Jul Why 1+1=3 Might Be the Most Useful ‘Bad Math’ in Business
- Why 1+1=3 Might Be the Most Useful ‘Bad Math’ in Business
I’ve heard the same idea referenced in two separate meetings this past week, from two people who don’t know each other and weren’t comparing notes. That’s usually a sign something is worth writing about.
The idea is a simple, deliberately wrong equation: 1+1=3.
Obviously, that’s not how arithmetic works. But it’s not meant to be math. It’s shorthand for synergy: the principle that when two people, teams, or companies combine well, the result is worth more than what each side brought on its own. The extra “1” doesn’t come from either party individually. It comes from the relationship between them.
The concept has been around for decades. Stephen Covey built an entire habit around it in The 7 Habits of Highly Effective People, Habit 6, “Synergize”. Synergy, he wrote, “is often expressed as an equation where 1 + 1 = 3, 10, or 1,000,” and it comes from valuing differences, not merely tolerating them. In corporate finance, synergy is the standard rationale investment bankers and executives use to justify mergers and acquisitions: two companies combine because the deal only makes sense if the result can do something neither could do alone, whether that’s cutting costs, cross-selling to each other’s customers, or entering new markets together.
Where it shows up in business.
Most of the time, 1+1=3 shows up as the justification for a decision to combine something: two departments, two products, two companies. It’s the test worth applying before any partnership, merger, or team restructure. If the honest answer to “what does this combination make possible that neither side could do alone” is “not much,” the deal or the reorg probably isn’t synergy. It’s just addition, and addition rarely justifies the disruption of putting two things together.
Where it matters most in executive search.
This is where the theory stops being an abstraction and turns into the actual standard a search has to meet. A search isn’t successful just because you find someone whose resume matches the job description. It’s successful when that person, joining a specific leadership team at a specific moment in that company’s life, produces something the team couldn’t produce without them. That might be momentum, a missing capability, or a different way of seeing the problem. Just as often, it’s trust with a group the rest of the team has never been able to win over: a skeptical board, a key customer segment, an engineering org that stopped believing in leadership.
That’s a fundamentally different filter than “is this candidate qualified.” Qualified is 1+1=2: competent people, added together. The better question, and the harder one to answer, is what this specific person unlocks in combination with the team already in the room. Two equally strong candidates can produce very different outcomes depending on who else is at the table, what the team is missing, and what kind of friction or complement the new hire creates. Getting that combination right is a much better predictor of whether a placement works out than any individual line on a resume.
It’s also why the best executive search work looks less like matching keywords and more like matchmaking. It means understanding the chemistry of an existing team well enough to know what would actually multiply its effectiveness, not just add another capable person to the mix.
Get the combination right, and a team doesn’t just get bigger. It becomes capable of things it couldn’t do before, which is the whole point of an equation that was never supposed to add up in the first place.
Written by: Elissa Dumiak, SHRM-SCP