Why is Business Communication So Crucial?
For any organisation, business communication is of primary importance. Effective business communication is needed to boost employee performance, but the concept is still very underrated, even in an organisation’s internal operations. Even though we practice business communication, we often ignore its implications.
For example, if you book a game with escape room breakout, you will see a lot of interactive efforts made on the brand’s part to keep you updated and hyped about the experience. From the start of the booking confirmation to sending you reminders up until the actual game’s slot. As the customer, you might not think much of it, but it is a very important communicative approach toward better operations from a business perspective.
It is a fact that most organisation reports do not consider the process of information flow and how different people are accessing them via different channels. To understand the implications of good Business Communication, we will have to start by understanding what it means.
What is Business Communication?
Business Communication is the sharing of information between people within the company or outside. It is essentially a way in which important information is passed from one person to another. It facilitates effective interactions between employees and the company in order to promote desirable performance. All the activities in a workspace are based on communication. It is a continuous process, especially when it comes to managerial and technical communications.
Business Communication is especially important when it comes to international relations. Proper communication prevents any mismanagement and provides both sides with satisfactory results. It also instils customer faith in the company and promotes a dependable brand image.
According to a survey conducted by Mckinsey Global Institute (MGI), business organisations with clear communications between employees have a spike in productivity of up to 25%. When communication is unclear, the carefully created work ecosystem crumbles. So, it is important that we take measures to strengthen business communication between all parties involved.
Types of Business Communication
Business communication includes tracking and reading reports, giving clear instructions, making suggestions, and developing different concepts pertaining to the business via systematic processes. Proper, if not direct, communications between the managers and employees improve the overall performance of the business and also reduce the chances of error.
There are different types of business communication depending on their goals. Importance is given to both internal as well as external communication.
Internal Upward Communication
Internal Upward Communication is a type of business communication where communication flows from the lower levels to the upper levels. This means that the communication goes from the subordinates to the managerial level or even higher.
This includes surveys, feedback, and reports that provide the superior with proper knowledge of the work that the subordinate is in charge of. Here I need to update detailing the progress of the given work. It is upward communication that enables the manager or whoever is making the decisions to decide on the next step. For example, a report dealing with marketing plans will include statistics regarding website click count, user interactions on social media, and new strategies for further development.
Internal Downward Communication
Internal Downward Communication is the type of business communication where the communication comes from the higher levels to the lower levels. This means that the flow of information comes from the managerial position to the subordinates.
This form of business communication helps the person in charge to convey the work goals, procedures, and policies. This includes manuals, notices, speeches, meetings, speeches, and different electronic displays. For example, a memo detailing new regulations will keep the employees updated on any change in policies.
Internal Lateral Communication
Not all forms of internal communication are based on a systematic workplace hierarchy. When it comes to Internal Lateral Communication, the information flows within the organisation itself.
This includes communication in the form of emails, messages, chats, and other employee communication software. These communications may occur via workspaces or outside, as long as they are in a professional capacity. This form of business communication occurs within departments or with other departments. For example, employees can exchange status reports via workspace software. Through Internal Lateral Communication, the employees stay informed about various aspects of their organisation and increase productivity.
External Communication
External Communication is the process through which the business organisation communicates to the outside world. This form of communication occurs between the organisation and the customer or with investors, vendors, and other businesses.
This sort of business communication includes information obtained from banks, insurance companies, suppliers, customers, and the general public. The main goal is to develop a stable brand image and increase profit.
10 Reasons Why Business Communication is Critical to Your Company’s Success
Effective Business Communication is important for the growth of the company, yet often, communications are not considered under business modules. The data shows that more than 50% of companies don’t have strategies for dealing with internal communications. It is important to understand how beneficial business communication is for the company’s growth.
Here are 10 reasons why Business Communication is critical for the company’s success.
1. Improves Employee Engagement
Research on employee management shows that leadership communication is an essential factor governing internal business communication.
It statistically correlates to the amount of employee engagement in the workspace. With effective business communication, employers and employees can both identify the problems and solve them accordingly. This will produce the best outcome and reduce the barriers between the employers and employees. This can take the form of speeches, company mandates, and detailed yearly goals which will make the relationship between the employer and the employee better.
2. Decreases Email Overload
It is common to be overwhelmed by the number of emails you receive every day. Emails are used for everything including:
- HR notifications.
- Updates.
- Work distribution.
- Task assignments.
- Status reports.
- Document distributions.
- Communications with suppliers.
- Customer engagement.
A lot of these emails are irrelevant or not of immediate concern, yet they clutter our inboxes. It is important that clear business communications take place as this will avoid email overload. Internal communication through business communication software will eliminate a lot of these troubles.
3. Increases Employee Productivity
Creating and maintaining employee workspaces will reduce the email overload discussed previously. Clear communication through proper channels and using appropriate tools will increase work performance. Focusing on a particular task and sharing information regarding that will help everyone in achieving their goal in a timely fashion.
4. Prevents Miscommunication
Too much information about various strands of conversation leads to confusion and poor work management. To avoid such miscommunication, business communication strategies must be implemented properly. Due to the spread of misinformation, the company’s image could be harmed. So, it is very important that we avoid a situation like that. Information flowing through proper channels and via designated people will eliminate such a situation.
Efficient business communication will also mean more coordination and increased teamwork. Sharing fact-checked information is key to the successful completion of a particular project. Hence it is all the more important to focus on communication between everyone in the organisation.
5. Improves Interdepartmental Relations
Proper business communication between employees as well as between departments will reduce conflict. It is hard to keep track of all information and developments. So providing daily updates on assigned tasks, their status, reports on research, and proper collaboration through company channels will help avoid any mishaps.
Tensions may develop between departments, which is not an unfounded fear. So, it is important to keep track of work progress outside the department as well. This will eventually lead to more efficient performance.
6. Reduces Employee Turnover
No company wants to see its employees moving to another organisation. That is why there should be honest communications from the beginning. Letting employees (new or old) know about the company regulations, policies, and the demands of the job will ensure satisfaction among all parties involved.
Relevant information will produce good work, but irrelevant information will only hinder progress. There should be a change in policies and company strategies that are not stuck in the past.
7. Improves Communication With Remote Workers
Since the pandemic, there have been various changes in the workplace. Most employees were working from home as per regulations, and it is only recently people are going back to work or working remotely.
The transition has become easier because of increased digitalisation and access to advanced technologies. But the most important aspect is stabilising this hybrid form of work culture with proper business communication.
8. Maintains Stable Customer Relationships
The main goal of any organisation is profit. So, it is natural that focus should be given to customer service. Better business communication assures better customer satisfaction. Everything in the company will directly or indirectly impact the customer’s relationship with the brand.
The relationship between the employees and the information they have access to will also impact the customers. So, it is essential that there is clear business communication.
9. Increases Brand Loyalty
Through marketing strategies, the companies try to put forward a particular type of brand image. Brand awareness itself is a form of business communication. It provides faith in the product or the brand, and this eventually leads to brand loyalty. So, it is important that correct and honest information is spread to promote faith in the company.
10. Improves Company Culture
Business communication is instrumental in building a healthy work culture because communication with the employees will improve their relationship with the company. The work-life balance should be promoted so that employees are not burdened and their productivity levels are not reduced. If there are work events or team bonding outings, it will improve the work environment immediately. Personally, that one time my employer took our team to the breakout escape room has become a fond memory of my workplace.
Tips on How to Develop a Good Business Communication Plan to Maximise Success
Here are some tips on how to set up a good business communication strategy.
1. Audit the Current Plans and Set Up New Goals
To develop a business communication plan, you must audit the current plans and set up new goals that centre around your needs. If there is a low employee or customer satisfaction, the plan should put more emphasis on that area. Setting up goals that are customiSed for a particular problem will improve business communication better.
There should be a focus on a clear step-by-step process of development. This will be quicker than planning based on just the main idea. Listen to the employees and customers because they are the ones who will be taking part in this process. So, the correct plan will always be in their words.
2. Identify Main Channels of Communication and Strategise Accordingly
You must identify the main channels of communication to maximise the amount of relevant information spread through proper channels. This will help avoid email overload and set clear messages to avoid confusion. Identify the core organisations that you must deal with as these will be the ones forming the chain of information. To avoid misinformation, it is important you choose the correct channels and strategise according to the demands of that particular role. Collaborate with the employees and others to access the plan best suited for your company’s needs.
3. Properly Define the Methods of Communication
Identify the proper methods of communication and define their purpose. The choice of communication will have to align with the demands. So, care must be put into defining the methods of communication.
For example, knowing whether the business communication is taking place via telephone, the web, or in-person is important. Communication can also take the form of surveys, feedback memos, reports, and other activities. Defining the method of communication is based on what the goals are and what we must do to achieve them.
4. Choose the Appropriate Tools
After identifying the methods of communication, we will have to choose the tools appropriate for that particular kind of communication. Take advantage of the technologies accessible to us. These tools are the ones that will help us keep up with the changes in demand.
You have to understand the message you are trying to put forward. This will help you in identifying the appropriate tools. Software and mobile applications will be helpful in this regard. For example, Gmail, Google Drive, cloud storage, and Click-up are some of the useful sources of technological business communication. They make information related to business accessible for the employees and, in turn, make sure the clients are satisfied.
5. Document the Progress
Documentation of the progress is necessary for the proper implementation of the strategies. The strategies are going to be customised, so it is important that there is a clear and updated documentation process. This will help keep track of the strategies and help gauge if they are useful or not.
This will also help in the long run. Both new and old employees can look up the details of successful strategies and implement policies to understand their work better and get hold of the tools and means of communication necessary for the smooth operation of the workspace.
In a Nutshell
Developing a strategy focusing on effective communication and putting effort into the relationships within the company ecosystem has a lot of benefits. With technological advancements, it has become even easier to focus on business communication through different channels. Also, it has made maintaining a healthy and loyal relationship between the superiors and the subordinates easier, which reduces conflict.
Always receive client and employee feedback. This will help in the smooth functioning of the organization. Establishing a perfectly balanced and communicative relationship between the internal and external forces governing the company is key to success. Now that you know how critical business communication is for the company’s success, make use of this knowledge and start investing in good Business Communication strategies now!
Action: For even more useful content on communication, check out our ultimate guide on communication skills.
