Communication & CI Part 2: Hidden Costs?

As noted in our previous post, communication is an important, yet often over-looked tool for bringing about a culture of continuous improvement and engagement within a workforce.

But the effect of communication depends on its quality, and poor communication can be costly.   Even worse, these costs frequently go unnoticed!

For example, as reported in a recent Society for Human Resource Management (SHRM) article, a survey of 400 companies with 100,000 employees each cited an average loss per company of $62.4 million per year because of inadequate communication to and between employees. The article also referenced another study showing that miscommunication in smaller companies of 100 employees cost an average of $420,000 per year.

To determine or impact the quality of internal business communication, it is important to recognize that some communication forums are better than others.

For example, many organizations use suggestion boxes as forums. But the results are often disappointing. While a suggestion box requires little time or effort to initiate, its success relies on the ideas being completely and clearly expressed in writing.  Unfortunately, many people with good ideas simply cannot express them well.

Furthermore, if a suggestion requires more  explanation  or  development before it can be turned into a really great idea, the suggestion box does not offer an opportunity for clarification, debate, or refinement. Even worse, when the initial ideas are not fully formed or expressed, and management doesn’t have an opportunity for clarification, the ideas are harder to act upon, and often management loses interest.  When people notice nothing comes of the suggestion box, they stop offering ideas.

Here are some additional examples of costly miscommunication in business environments identified by Helen Wilkie, a consultant and author specializing in profitable, applied communication:

  • Long, boring, poorly-planned unproductive meetings that reach no conclusion and serve no purpose
  • Sales presentations that show no concern for, or understanding of, the client’s needs
  • Wasted time due to miscommunication about time or scheduling
  • Badly written e-mail messages that cause misunderstandings, ill will and wasted time
  • Employee alienation caused by managers who don’t listen
  • Lack of understanding between people of different age groups
  • Lack of understanding between male and female employees

Ultimately, the best forums are regularly-scheduled gatherings in which people can surface and discuss problems, waste, and opportunities for improvement.

When well-crafted, these forums allow for discussion to make sure each idea or observation is fully understood; any problems with an idea should be raised freely and discussed with the goal of improving the idea. In the end, the most effective improvements and innovations are often quite different from both the initial ideas and even the counter proposals. They emerge from listening to and incorporating different perspectives about barriers and unintended consequences to raise concepts to new levels.