$15,000 X Your Organization.
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Thank you, Dustin Dale
If you think communication isn't as important as doing a financial analysis on the quarter you just finished, then think again.
I want to challenge you. What is poor communication costing your company?
Are you not sure how to compute the number? I'll give you a hint: look at your P&L. If your comp/target isn't where it should be, then you have found your answer.
If your P&L shows a positive gross/net, what if you add 5% more to that number?
Now it seems a little more real.
In 2023, a study was conducted across vast companies that focused on the cost of poor communication and how it affected the company.
The study found that the average cost of poor communication was roughly $15,000 per employee, and this was calculated from the conversations surveyed with 1,000+ employees and 500+ top-level leaders.
The "cost" would be hidden from the blinded eye of a leader and CEO, but when the cover is lifted back, the actual impact can be seen.
According to the AxiosHQ report, 70% of leaders believed their teams could, and 46% of employees said they could.
The critical point of communication I often focus on with clients is the MUST for leaders to involve their employees when the expectations and strategies are being set. This allows for a smoother implementation system to be created and managed.
Take a moment and pause to think about your leaders inside your organization. Do they correspond enough with the teams/employees executing the project, task, or mission?
Or.
Do they align with the study where 70% believe their teams could, with half the employees believing they can?
If not, then realize there is a cost to employees being confused, leaders not touching base, or a complete overview of ensuring the plan is as simple as possible.
Communication is listening actively and applying emotional intelligence with a strategy.
This is how I describe communication to leaders across the globe. If your leadership and culture can shift their mindset to this model, you will reduce the $15,000 (estimated) expense of confused employees/leaders.
The next area I love from the report is that most leaders and employees are not on the same page. This is not a blame game of who is right and wrong but rather an observation that displays the need for effective and timely communication loops.
66% of leaders felt aligned with their employees, but only 44% agreed with the statement.
If your employees are working on Project A but you are talking about Project C, and the scope of work (communication) is talking about Project D, the cost is again hidden from the covered eye.
When the team is project planning, it's imperative that the leader understands the proper channels and expectations from wherever the communication is coming from.
This applies to HQ, field teams, and field leadership inside the field teams. This applies to the university president and the educational staff delivering on the expectations.
This applies to regional VPs/Sr. directors to district leaders who will be delivering the mission and vision.
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It is critical to massively focus on ensuring clear communication through the best channels.
This is the example given by AxiosHQ.
Lastly, I want to highlight an important area the study discussed.
The need for communication that matters.
A company could be led to believe their organization has excellent communication, and it might be so. Still, the false awareness of it being "meaningful" communication is a lagging thought that might not be captured.
77% of leaders felt they captured the "meaningful" context of employees doing their job well, and 46% agreed.
Being a leader is tough because you can only do so much to communicate with employees, and if they are not willing to receive the communication, you can't force them.
BUT. Yes, I use the word BUT.
Many leaders lack the self-awareness they need to improve their ability to connect with employees.
I can base this bold statement on what I have seen in my work with companies.
Leaders do not purposely try to do a lousy job of communicating or caring for employees, but they also fail to realize they may not be connecting with the team the way they should be.
Or, they realize they need to connect with employees more tactfully but lack the knowledge to execute a strategic plan.
This is prevalent during coaching conversations and friction points. It is often due to both parties seeking to validate why they would be correct or simply looking for verification but not receiving it.
The time, energy, and salary of these investigations and ongoing conflict resolutions can become very costly. There will always be some friction, but at what level and degree it can be solved is the difference in profitability.
When employees/leaders are doing what they need to do, there is always a cost.
In conclusion, I hope this edition sheds some light on the fact that if you are not focused on creating alignment with your organization or cultivating strong relationships through communication training, then you might be experiencing a growing loss that can be stopped.
Schedule time for connection points through strategy meetings, open-door sessions, or collaboration periods where the goal is to focus on communication.
If you would like to learn more about how Beyond the Horizon Consulting can help in this area, then I invite you to schedule your free assessment call with us!
You can book Dustin Dale as your leadership/motivational speaker!
Make sure to check out Dustin Dale's books on leadership and mindset, which are available on Amazon.
Learn to Lead by Serving & Learn to Lead by Serving 2
To learn more about Dustin Dale; dustin-dale.com
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
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