The High Price of Poor Communication
On my way to a consulting project last week I was at an office building in downtown Minneapolis, and as I stepped into the elevator, two men were intensely discussing the meeting they were heading to. One said, "We will have to be careful in the conversation with her so that she will hear what we have to say. This has to be done in an appropriate manner . . . she has to listen at some point because there is too much at stake." With his head against the elevator wall, the other person responded, "This is such a mess."
An internal conversation was happening in my own mind . . . "I wish you knew about coaching skills. You could be talking about how to be effective in defusing the situation and be experiencing a higher level of confidence going into that meeting."
Soon I heard, "People are so stupid, present company excluded," acknowledged by a quick glance my way.
Even though a verbal laugh was shared as I stepped off the elevator, this was not a good day for these two gentlemen! They were correct however; appropriate timing can be everything in determining a positive outcome or a waste of time.
As I continued to reflect upon the conversation, I recognized that the situation the men were facing was a chronic symptom of poor and inadequate communication.
Let's look at the findings of poor communication.
Did you know:
Actively disengaged employees cost the U.S. $450 to $550 billion per in lost productivity (2014. Gallup State of the American Workplace Report).
Poor communication in U.S. hospitals has cost the nation $12 billion a year (Researchers from the University of Maryland’s Robert H. Smith School of Business). Click here for another link that expands this finding.
Projects often fail because organizations put more emphasis on rational factors than on employees' psychological engagement, and the cost to organizations is enormous. One estimate of IT failure rates is between 5% and 15%, which represents a loss of $50 billion to $150 billion per year in the United States. (Gallup Business Journal)
Poor communication comes in different forms:
- Long cryptic or rambling e-mails that are misunderstood or incorrectly perceived, resulting in hurt feelings, ill will, and inaction.
- Poor communication systems and processes that leaves people wondering what the proper steps are to resolve their challenges.
- Long, unproductive meetings without a clear purpose and reaching no conclusion. This equals poor productivity and wastes the collective time of everyone who attended the meeting.
- Not understanding a customer or the client needs generating a lack of trust.
- Distracted supervisors who do not genuinely listen to their team, resulting in alienation and low morale.
- Not understanding different generations, communication styles and preferences, which lead to inappropriate statements.
- Squandering time because poor communication takes longer to process and untangle misunderstandings.
- Eroding trust and loyalty because of lack of clarity.
- Stressed relationships or even worse, destroyed because of hurtful or accusatory statements.
- Low morale because of insensitive, ineffective, and inadequate communication.
- Employee turnover where replacement costs can be as high as three times the person's annual salary. Watson Wyatt Study found that companies were 50% more likely to report turnover levels below the industry average. (2003/2004, 3 November. Watson Wyatt & Company)
Of course these lists could be considerably longer . . . but are long enough to illustrate that:
Ineffective communication exacts a high toll for companies in lost relationships, business, profits, and productivity.
On a positive note. Thoughtful communication delivers unparalleled benefits:
- Employee engagement and commitment
- Healthy morale
- Talent retention
Engaged workers are the lifeblood of any organization. My bent toward leaders learning effective communication skills always comes to the forefront in my consulting work. The one question that resounds:
How can we develop lasting relationships, build a healthy business, and make a positive influence without communication excellence?
Being intentional in effective communication is central and key to achieving these elements. This reminds me of George Bernard Shaw quote, author of Leadership Skills for Managers:
“The single biggest problem in communication is the illusion that it has taken place.”
Mary is a leadership consultant who works with organizations to establish a culture of synergistic teams, systems and processes for greater employee engagement, a culture of loyalty, and communication effectiveness. She trains leaders to maximize leadership competencies, develop greater agility, and achieve leadership influence through communication excellence.
Mary is President and Cofounder of the Center for Coaching Excellence, a distinctive training organization that focuses on developing highly competent coaches through a mentor-training approach and a training model of coaching that easily transitions into personal and professional conversations.