How Effective Communication Can Give Your Business an Edge?
For organizations where supply chain logistics is one of the crucial functions, good communication is nothing less than a lifeline.
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Be it in any form – internal, external, interpersonal, verbal, written, formal, informal, grapevine, online or offline, communication is the nerve centre of any business. A good communication strategy binds the organization, its people, customers and other stakeholders together. In fact, according to a report, companies with highly effective communication strategy register 47% higher total returns to shareholders. Whereas, if employees who misunderstand or are misinformed about company policies, business processes or/and job function, can be responsible for the loss worth $37 billion to their organizations.
In spite of its importance, organizations often take communication too lightly, a mistake which also has huge implications in terms of employee morale, productivity and brand reputation. The business world is full of such mistakes. Take for instance, the Enron Corporation fiasco. An analysis highlights that senior management of this energy-trading giant failed to meet communication-based leadership responsibilities such as communicating appropriate values to create a morale climate, maintaining adequate communication to be informed of organizational operations, and maintaining openness to signs of problems.
A robust communication strategy internalizes the core values of the organization and gives a sense of purpose or direction to the employees. It plugs loopholes and blockages that usually make the flow of information inefficient between the management and employees. When communication is open, co-ordinated and prompt, it reduces conflicts as well as misunderstandings. This eventually leads to better interpersonal relationships and improved team performances. The overall productivity, innovation and creativity of the organizations get a boost.
Have you ever wondered why the online shoe and clothing retailer Zappos is considered a gold standard in the industry when it comes to customer service? When Zappos hires its employees, it makes sure that they live and speak company’s brand values – ‘wow’ your customers by creating an emotional connection with them. So, its employees always go an extra mile to keep their customers happy. It fosters a transparent communication culture internally to provide superior customer service. It shares every news-good or bad with employees first so that they know what’s going on and can service the customers in their best capacity.
For organizations where supply chain logistics is one of the crucial functions, good communication is nothing less than a lifeline. Remember, customers wouldn’t understand why their products were delayed in delivery or a particular service promised to them couldn’t be fulfilled because of back-end issues. All they understand is that they had a poor experience with your organization. So, collaborative communication with vendors, suppliers and third parties matters a great deal as well in smooth functioning of the operations.
Clearly, effective communication strategy, if in place, can give businesses an edge on all fronts.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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