Let’s stop burning money on poor communications. Identifying
the actual costs for not having the best communications aimed at specific
outcomes and attaining the goals of anyone organization is an elusive
task. However, some irrefutable trends point strongly to higher and growing
costs. Let's start with some base studies done within the last decade. One
study was aimed at large organizations, and the other was at small to medium organizations.
The Past Base Studies:
In "The Cost of Poor Communications," David
Grossman reported that a survey of 400 companies with 100,000 employees or more
each cited and an average loss per company of 62.4 million per year because of
inadequate communication to and between employees.
In her article "Top Ten Email Blunders that Cost
Companies Money," Debra Hamilton asserted that miscommunication cost even
smaller companies of 100 employees an average of $420,000 per year.
It’s Much Worse Today:
If these studies were refreshed, I would assert that the
numbers are much higher for several reasons. One is that we are moving to
distributed responsibilities and matrix-management styles create confusion over
day-to-day priorities operationally, longer-term priorities tactically or strategically.
To compound this problem, we can communicate faster-automated collaboration and
communication tools across various communication channels.
You Haven’t Seen Anything Yet:
The future of work is hybrid, adding another level of
complexity and opportunity for misunderstanding with a potentially new crisis
of confidence for the workers at the edge. Recently, Gartner says “By the
end of 2021, remote workers will represent 32% of all employees worldwide,
impacting how and where remote workers use IT.” Our employees want and can demand
these new freedom levels, and organizations need to get that talent is now
hybrid. Unfortunately, this opens us to a more extreme lack of focus and losing
perspective on purpose. It also does not optimize innovation; therefore, the
credibility of the organization and individuals wanes.
What’s at
Stake?
Besides just time and productivity loss because of chaotic
communications, project failures have and will continue to be. These, in turn,
result in the following:
·
Poor customer service and dissatisfied customers
·
High-stress levels and low employee morale,
which can additionally affect productivity and deliverables
·
Higher than average employee turnover rates
·
Loss of company/organizational credibility
·
A decline in sales and stock value
If
this list doesn’t get your attention as a business professional, I don’t know
what will.
What Do
We Do About It?
Companies with leaders who are highly effective
communicators had 47% higher total returns to shareholders over the past five
years than firms with leaders who are the least effective communicators.
·
Stop making excuses and commit to getting
better.
·
Get a mirror and allocate time and resources to
deliver messages through expected results, outcomes, and goals.
·
Leverage methods and technology that deliver
results-oriented communications
·
Be persistent and consistent but consider the
audience
·
Actively listen and walk the talk
A key to all the above is attitude and the new systems,
tools, and processes needed to communicate effectively with teams. Many
managers mistake repeating communications fast down multiple communication
channels to bathe the employees with more communications hoping they get the
intent. Having a communications infrastructure and tools that link every
communication with desired results at the stakeholder is a minimum. If all
results, goals, and outcomes are documented and shared in a typical data
resource that can be pulled into efforts in a real-time fashion, the results
will be better. Every time something changes, all interested parties are
notified within result/goal/ outcome contexts. We need to embrace
results-oriented communications intentions, infrastructure, and tools to
deliver a better communications culture over time.
Net; Net:
These few facts represented here are the tip of the iceberg
on the breadth and depths of research that has and will demonstrate financial
rewards for businesses that communicate well to their employees and the
problems that result when they don’t. Switching to a results-oriented
communications culture is essential. It doesn't matter if an organization is
scared about the present wasteful costs or enticed by higher monetary returns
or both; we are now in the world of hybrid work enabled by ROC. It's time to
take of the fight against "random tasks."
Additional Reading:
Results-OrientedCommunications Post
Hybrid Work Model Post
Chaotic Communications Post