A collaborative workplace environment has been proven to significantly boost productivity. In a study by Stanford University, participants who believed they were working “as part of a team” stayed on task 64% longer, reported greater engagement, and experienced less fatigue compared to those working alone. But what makes collaboration so effective, and how can businesses harness its full potential?

In this guide, we’ll break down the core types of business collaboration, outline measurable benefits, and highlight the best tools to help modern teams work more efficiently.

What is business collaboration?

Also known as 'collaborative working', business collaboration is where two or more individuals (or companies) work together to achieve a shared business objective. It may sound like a simple and obvious working practice – most people will collaborate with their colleagues every day – but rarely is this efficiently implemented on a business-wide scale.

When done right, however, collaborative working can significantly boost team productivity and workplace efficiency. There are several effective strategies for implementing business collaboration, each tailored to different team structures, goals, and work environments.

Types of business collaboration

Collaborative working comes in many forms, but the most common and effective types are:

  • Synchronous vs. asynchronous collaboration
  • Collocated vs. non-collocated (remote) teams

Synchronous collaboration

Synchronous business collaboration is when employees work on a task at the same time – whether in the same location or remotely. It’s ideal for real-time projects like live meetings, agile development, or brainstorming sessions.

Asynchronous collaboration

Asynchronous business collaboration is when team members work on the same task at different times. It’s ideal for projects like content creation or code reviews, where one person completes a step before passing it onto the next person. An example of this method for written content, would be one person drafting the copy, and another reviewing it later – without interrupting each other’s flow.

Collocated collaboration

This is when team members work from the same physical location, enabling more face-to-face interaction. This can improve alignment and communication but may come with overheads like increased office costs.

Non-collocated (remote) collaboration

Non-collocated or remote collaboration is when remote teams work from different locations or even different time zones. This approach increases flexibility, reduces overheads, and supports global hiring.

Many modern teams adopt a hybrid approach, combining both in-person and remote collaboration depending on the project.

What are the key benefits of business collaboration?

It's up to you to decide which method of collaboration suits your business best. But besides improving employee collaboration and interacting with other businesses for large-scale projects, there are two other key benefits to be had from implementing collaboration in business.

Financial benefits

Business collaboration can help reduce costs by sharing resources, splitting project expenses, or minimising staffing needs. For example, collaborating with another business on a product launch might mean shared marketing costs and access to a broader audience – without doubling your budget.

Remote collaboration also reduces the need for office space, saving on utilities, commuting expenses, and maintenance costs.

Educational and knowledge sharing

Working with other departments or businesses opens up new learning opportunities. Employees gain exposure to new tools, perspectives, and skillsets, resulting in a more agile and informed workforce.

A collaborative partner may also share access to research, tools, or technology, which can accelerate project success and innovation.

Increased innovation and engagement

Employees involved in collaborative environments often feel more engaged and empowered. Studies show that engaged employees are more productive, creative, and committed to company goals.

Best collaboration tools for business

Effective collaboration relies on clear communication and well-coordinated teamwork. Whether your team works in person or remotely, it’s essential to stay connected and aligned. Fortunately, a wide range of collaboration tools are available to help teams communicate, organise tasks, and boost productivity.

Microsoft Exchange email and Outlook

One of the most essential business collaboration tools is email. While free email services like Gmail and Hotmail may work for startups, robust business collaboration software like Microsoft Exchange offers powerful coordination features that significantly boost collaboration efficiency and productivity. 

Microsoft Exchange integrates seamlessly with Microsoft Outlook, making it easy to set up each employee with their own email account. From there, teams can utilise shared contacts, calendars, and task lists to coordinate meetings, assign actions, and manage responsibilities – key components of effective collaboration in business.

Skype for Business

Skype for Business remains a popular collaboration tool for businesses, especially for internal communication. When quick answers are needed, instant messaging is often more efficient than email. Skype’s status alerts show colleagues’ availability, which helps streamline communication and coordination – crucial for successful business collaboration. 

Skype also offers audio and video conferencing along with screen sharing features. This allows team members who cannot attend face-to-face meetings to dial in and actively participate. Such features are particularly valuable in non-collocated collaboration environments, ensuring all team members stay informed and engaged, no matter where they are working.

Microsoft Office – online and offline

The Microsoft Office suite is widely recognised in business for its comprehensive tools covering word processing, spreadsheets, presentations, accounting, and more. What enhances these tools as effective business collaboration software is their availability in online versions. These cloud-based apps simplify document sharing across teams and improve collaboration by enabling real-time editing. Integration with Outlook and Exchange calendars further streamlines tracking document versions and managing suggested changes, making collaboration smoother and more productive.

Whether you're building a new business or managing a growing team, Fasthosts provide the tools and services to support effective collaboration. With tools like Exchange Email Hosting and Office 365, your team can manage calendars, schedule meetings and share files without switching platforms.

Looking for more business tips? Check out the Fasthosts Business Hub for more expert advice!