What are the risks of poor stakeholder communication during an expansion?

Poor stakeholder communication during an expansion can lead to various risks and challenges, impacting the success of the expansion initiative. Some key risks include: 1. Misalignment of Goals and Objectives 2. Employee Uncertainty and Resistance 3. Loss of Trust and Confidence 4. Increased Resistance from Local Communities 5. Financial Uncertainty 6. Operational Disruptions 7. Ineffective Decision-Making 8. Regulatory and Compliance Risks 9. Brand and Reputation Damage 10. Loss of Key Talent 11. Missed Opportunities

Loyalty and support are crucial during expansion therefore keeping communication lines open is crucial to keep the trust and credibility of all stakeholders

In my pharma experience,trust & credibility are lost, stakeholders end up doing things in silos , integration is lost,like ARD works on 'X' molecule while FRD works on 'Y' because of poor communication, due to this organization goals/objectives are not achieved,thus it leads to delayed dossier submissions(filings), obviously delayed product launches, loss of revenue.Situation like'Covid19' impact is huge because patients would not get live savings medicines on time. Stakeholders may end up blaming each others (conflicts),poor morale, enthusiasm is lost. Distributors may loose trust if product is not supplied on time. Certain countries regulatory agencies & ministry of health consider delay in supply very serious and imply huge penalties.

The last thing you need in an expansion is conflict and resistance that's why uts crucial to keep communicating especially when it comes to decisions that need to be made.

An effective communication is one that not only lacks ambiguity, but also elicits the desired response from the audience. Poor communication can lead to a misunderstanding through misinterpretation whose consequence include conflict and resistance. The intention of the communication may be great but if delivered poorly, it can lead to detrimental effects (undesired consequences). That is why the elements of communication need to properly considered including the audience, the message, the channels and feedback loop.

Communication with stakeholders will help with avoiding missed opportunities and errors because they'll be looking at it from a different perspective which is needed in a expansion. Being neck deep in everything that needs to be done can very easily miss opportunities and errors to be made.

This can definitely affect the team morale and culture and that's not good for any business trying to expand it works against you.

When something as big as a expansion is taking place you'll be watched to see how you handle the pressure, how you play your role and essentially your behaviour. With open communication you can be supported and assisted by different stakeholders in different ways.

Poor stakeholder communication during an expansion poses significant risks, including misaligned expectations, reduced trust, and potential project delays. When stakeholders are not adequately informed or engaged, they may feel disconnected from the project, leading to resistance or lack of support. This can result in misunderstandings about project goals and timelines, causing friction and potential conflicts. Additionally, inadequate communication can hinder the identification of potential risks and opportunities, as stakeholders often provide critical insights and feedback. Ultimately, poor communication with stakeholders can jeopardize the success of the expansion, impacting both the project's timeline and its overall quality.

Poor stakeholder communication during an expansion can lead to conflict, loss of trust, and missed opportunities. Keep your stakeholders informed, engaged, and aligned to ensure a successful expansion