Amplifying Communication
Communication is the lifeblood of every company. It determines how aligned, productive, and healthy the company is. Communication provides and circulates the information needed for an organization to function, and areas where communication does not flow are inhibited from contributing. Effective communication channels can foster trust, relationships, innovation, and alignment. Open and candid communication can also help you successfully navigate unexpected challenges and take advantage of new opportunities.
In the early stages of a company's growth, communication often comes naturally and flows easily. With a small team, everyone knows each other and is working in close proximity. There are a lot of natural collisions that provide informal and spontaneous opportunities to talk. It's easy to stay informed about what's going on and to quickly address any issues that arise. Most communication takes place face to face.
As a company grows, however, communication becomes more complex. New team members join, and teams are spread out and don’t see each other as frequently. In addition, new investors and new members may join the Board. With this added complexity, it is challenging to ensure everyone is on the same page. Gaps in communication can quickly lead to confusion and lack of alignment.
The connection between communication and productivity is well-established. Top-performing institutions are recognized to possess 19% more proficient communication than those that perform poorly. Good communication has been linked to a 60% surge in successful projects. Interestingly, in one study, 80% of workers stated they would extend their working hours for a firm with strong communication. There are also clear ties between high employee morale, engagement, retention, and robust communication. Research by Towers Watson demonstrated that businesses with highly efficient communication strategies enjoyed a 47% increase in shareholder returns, compared to their counterparts with subpar communication.
At the same time, 86% of employees and executives attribute workplace failures to inadequate communication. In a survey by McKinsey & Co., 81% of participants agreed that ineffective communication and collaboration detrimentally affect project results. When probed about the most significant hindrances to their productivity, 42% of workers singled out insufficient communication from top-level management. A Wrike study further highlights the cost of poor communication, estimating a yearly loss of $37 Billion in productivity for organizations.
As a result, it's essential to prioritize communication as your company grows. This means developing effective communication channels, such as regular meetings, updates, and reports, to ensure that everyone is informed and aligned. This also means creating a culture of transparency and openness, where feedback is solicited, and everyone feels comfortable sharing information and discussing any challenges or issues that arise.
Amplifying communication goes beyond just communication from the CEO and the Executive Leadership Team. As an organization grows, communication needs to be multi-directional: from the CEO to the leadership team, the leadership team to the levels below, between departments and locations - and from the bottom up, back up the chain to leadership and ultimately the CEO across the organization among departments and between departments.
As companies move through the different stages of growth, each stage has its own unique communication challenges and expectations. What it means and what it takes to be effective evolves as a company grows:
Emerge - In the initial stage of growth, the founder is often the primary communicator and communication is generally one-directional: top down. Communication tends to be informal, spontaneous, and based on personal relationships. Teams are generally small and in close proximity. Communication flows naturally and without much effort. Interactions are frequent, and everyone is generally informed.
Operationalize - In the second growth stage, communication is still mostly top-down, but leaders must become intentional about keeping everyone aligned and informed. Feedback from employees is solicited when there are problems. At this point, leaders discover whether employees are willing to share their thoughts, perceptions, and feedback openly and honestly.
Grow - In the third stage of growth, communication becomes even more complex as the company expands. Communication protocols, systems, and channels must become more formalized. At this stage, companies need to have free flowing communication from the top down and bottom up. Leaders should be regularly soliciting feedback from employees and using the information received to inform strategy and decisions. If employees are not openly providing negative feedback and ideas for improvement and innovation at this stage, an audit of the culture should take place.
Explore & Expand - When an organization reaches this stage, comprehensive and strategic internal communication functions and processes are often in place. Most communication is no longer the primary responsibility of the CEO. Communication flows back and forth in multiple directions.
By adapting your company’s communication strategy and measuring success at each stage of growth, you can navigate the challenges of rapid growth, seize new opportunities, and achieve long-term success.
If your company is struggling with communication, we are happy to help walk you through options for increasing the effectiveness and help you create a communications strategy and plan. Visit our website and reach out at www.PeopleCap.com.
