Articles and Newsletters
Communications - Hard-Wired to the Bottom
Line
By Sarah Woods
What drives your bottom line results? Is it a well developed strategic plan? Is it a talented team that can execute? Or a sales and marketing team that is competitive, motivated and able to find new opportunity?
While all of these are important factors in your success, there is something missing here: leaders who are exceptionally talented in communicating with each other and the organization. You can have a great plan, a talented team and an ambitious sales force, but without a plan to communicate and people who know how to do it well, you will fail.
As we like to say, communication is hard-wired to the bottom line of your business.
This of course flies in the face of how communication skills are regarded in professional development, particularly in "results-driven" corporate cultures. Often regarded as a "soft skill", communication often takes a back seat to business and technical skills.
Meanwhile the reason most leaders fail isn't because they don't understand the business, or don't know how to manage people. It's because they aren't focusing enough energy on articulating their ideas, getting buy in, winning people over, or motivating and inspiring other people to succeed. These are essential communication skills that every leader must have to succeed in a competitive, fast-moving, changing economy.
What are the hidden costs behind poor communications? What is the risk to your company's future if your leadership team can't communicate effectively, or if people can't communicate with them?
The outcome of poor communications within your company is that people don't understand what they're supposed to do or why; they are not motivated to drive results, and innovative ideas remain trapped behind cubicle walls. Externally your company has many relationships at risk: analysts, investors, strategic partners, customers, press. Can you afford to delegate exceptional communication skills to one or two departments?
It isn't just bottom line results that are impacted, it's also costs. How much money is wasted by overworked employees wasting time putting out fires that could have been avoided? What could you accomplish if everyone did it right the first time?
3 Scenarios Every Leader Should Fear
- Bill and Eliza are Vice Presidents at a top mutual fund company, responsible for different areas of the marketing organization. Both were hired in the last two years because of their broad industry expertise and record of success at other companies. They have a working understanding of each other's organizations... but for some reason, they can't seem to agree. She assumes he has no idea of the needs of her market, and it's her job to teach him the ropes. He believes she's narrowly focused and not seeing the big picture. Meetings are an exercise in frustration, and departmental productivity drops. They're trying, but can't seem to work through the impasse. Soon, their SVP's are talking about it in a leadership team meeting. What's going on with Bill and Eliza? Somebody needs to help them out! Joe suggests they just need to go out for drink. Sue thinks HR should jump in. An entire leadership team meeting is spent brainstorming solutions. What's happening? What's the cost?
- Clare is the head of business unit at a global technology firm, and a high potential leader in her company. She's had tremendous success implementing major programs for top clients. Her client contracts are worth millions, so new proposals are not only a team effort, but final sign-off on pricing requires by-in by the CEO. It takes months to respond to an RFP, starting with the product line specialists who identify solutions, and rising through the management organization for strategic decisions and approvals before finally being submitted to the client. Today, Clare is taking one of the largest contracts her business has ever gone after to the CEO for discussion and approval. The meeting doesn't go well. "Where did these assumptions come from?" "Did you bring in XYZ department to bundle services?" "Did the client open the door to a multi-year contract?" "Have you covered potential losses from systems going offline in 3 years?" Clare had believed she was prepared to defend her business unit's strategy…now she's scrambling for the answers. Why?
- Jeff was brought in to negotiate with his firm's largest client. A year ago his predecessor had signed open-ended contracts that had resulted in lost revenues for his biotech company. It was his job to stop the bleeding, reduce their risk, and keep the client. He'd been dealing with the client contact, Paul, for a year, and was uncomfortable with his aggressive style, but Jeff wasn't looking to become Paul's best friend...he simply had a job to do for the company. Later, at a client function, Jeff's boss asked Paul how it was going; the report was not good. "He pretty much shuts down the conversation…I don't know how to deal with him!" was the response. "When I asked for a concession, he said he'd look into it and let us know. Nothing was accomplished…I'd rather deal with you." What's at risk?
Linking Communications to Your Bottom Line
How can you avoid the hidden losses from misalignment between departments…missed potential on revenues...reduced confidence by clients?
- Assess the communication skills of your leadership team - with a complete, accurate picture of the many areas of communication that are important to them as leaders
- Provide timely, candid, constructive feedback on communication skills immediately after meetings, events, calls and important interactions
- Provide high quality executive training programs in skills such as presentation, influence, asking questions and listening, leading meetings and other skills they must develop
- Provide one-on-one coaching to top leaders and emerging leaders to help them improve their communication skills at every stage of their development
- Hold leaders accountable for quality communications with their teams by attending their meetings, surveying their teams, and articulating precisely where they need to improve in their professional development plans
- Demonstrate leadership by modeling great communication with your team- make communication "job one" from the top down and people will see how important it is
Have you been marginalizing communications as a "soft skill"? Have you categorized it as the job of the marketing or communications group? It is HR's issue to deal with? If so...at what cost?
Read more articles about the importance of communication to the "bottom line" - click here: http://www.bates-communications.com/articles/
Other articles for this month include
How to Ignite Energy and Creativity in Your Workforce
New, Innovative, Low-Cost Ways to Motivate Employees
Choosing New Leaders - How Important are Communication Skills?
The Top 5 Myths About Motivating Employees
Read and subscribe to Suzanne Bates’ blog, for her latest tips on how to become a powerful speaker and communicator!
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Matt Davis,
Corp. Director of Executive Communications,
Dow Chemical Co.
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