Ivy Sea Online: Nine reasons communication is a smart investment

(1) Multiple surveys and many gurus indicate that a large percentage of corporate restructurings and mergers are more difficult and costly than originally anticipated. According to the Drucker Foundation management journal, Leader to Leader, a full two-thirds of change efforts (quality, reengineering, vision statements, etc.) fail to achieve their intended results. Experts and studies frequently cite ignored people and culture issues as one predominant reason for the failures.

(2) According to the Excellence in Communication study conducted by the International Association of Business Communicators Research Foundation, a clear majority of Chief Executive Officers surveyed deemed communication an integral -- and often underutilized -- contribution to effective, productive employees; company profitability; and successful corporate initiatives.

(3) Companies that survey managers and employees consistently find that well over half (often 75% or more) of managers surveyed felt they did not have the information or interpersonal communication skills to foster productivity or meet their staff members’ needs for critical information. Similar percentages of employees felt they did not have the information needed on the goals of the company, the company's business, their roles in meeting company goals, etc. to contribute to the company to the degree they were able and willing to so.

(4) According to the Journal of Commerce, employees who feel a sense of belonging and identity with their companies will help the company increase its productivity and profits, and can be counted on to help the company in times of crisis (March 20, 1997, v411, n28934, p8A, "Building Loyalty and Profits").

(5) According to the Sloan Management Review, ongoing changes in a company's structure and the still-strong trend of downsizing, restructuring, merging and acquiring, are directly linked to a decrease in loyalty. Other studies have linked decreased loyalty and commitment to higher rates of absenteeism, turnover and lowered productivity and organizational performance -- all costly trends for business. Still other studies have indicated that good communication, culture and leadership help create more positive, productive employees, and thus organizations (Stroh, L.K., and Reilly, A.H., "Loyalty in the Age of Downsizing," Summer 1997).

(6) A 1996 study by the Conference Board showed that 43% of companies surveyed reported difficulties in finding and retaining high-quality employees. According to the article, "at all levels, companies need people who can deliver at the frontier of performance. They must understand where the company is going and be able to influence its path. They are the repository of much of the knowledge and skill base that makes the firm competitive. No company can be successful with a detached and unmotivated work force."

The article continues, "the burden is fully on the company to clearly communicate the basis of the employment relationship to all its employees and to keep them abreast of issues facing the company and the implications for them as individuals...The strategic benefits include greater employee loyalty and commitment to business goals, a way to drive cultural and behavioral change, a stronger corporate image for key stakeholders, better access to labor markets and improved customer relationships."

(7) The Computer Security Institute found that information security breaches cost the 563 companies it surveyed more than $100 million in 1996. When employees don't have the information they'd need to help protect the company's proprietary information, the company loses one of the best front-line defenses of information security. And this is just one area of business management, not including other areas such as productivity, morale, customer service, turnover, etc.

(8) In the highly-regarded book, Built to Last: Successful Habits of Visionary Companies, a common thread among companies that have been effective during their long histories is a habit of smart information-sharing, and the consistent and effective communication of the culture and expectations of employees and managers. The basic frameworks (learnings, best practices) from these companies are effective regardless of the size of company in which they're applied, but the practices will not work if issues of culture and communication are ignored.

(9) "Friction decreases productivity in all areas. Most managers spend at least 15-percent of their time (nine weeks per year!) dealing with personality squabbles" that good interpersonal communication skills and supporting communications could help mediate (Denver Business Journal, 1/27/97). Other studies have linked even higher percentages of absenteeism, turnover or decreased productivity to poor managerial skills and miscommunications between employees or employees and their supervisors.

This information provides food for thought rather than counsel specifically designed to meet the needs of your organization or situation. Please use it mindfully. The most effective leadership and communication plans are those that have been tailored to meet your unique needs, so don't hesitate to get individualized assistance from a qualified adviser. The sources above are shared in good faith and assumed to be valid, though Ivy Sea cannot guarantee the accuracy of reporting from the non-ivy Sea sources referenced.