By: Douglas Wade, Attorney

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What is Business Communication?

The ways in which businesspeople communicate with others are of paramount importance. Of course, we don’t stop and think about our ongoing daily communication because it has become innate and because our days are packed with seemingly never-ending tasks. However, good business communication is one of the most important aspects of running a successful, profitable company.

If an individual has excellent communication skills, he or she is already one step ahead of the game. Being able to effectively get one’s point across is a business skill that is often underemphasized but loaded with meaning. Companies large and small may sometimes appear to be faceless entities, but on the contrary, they are made up of an assortment of real people with real talents, ideas, and goals. Effective company communication, then, places all of these people into dialogue with each other.

When the people who make up a business are able to communicate effectively, the impact on the company is extreme. Each and every layer of a small or large company can be impacted, including processes specific to the industry, overall efficiency and productivity, and even overall company vision for going forward. When people are connected together by smooth business communication, research tells us that productivity is lifted, revenue can be increased, customer service can be improved, and more.

The question remains, however: how can excellent business communication be achieved and maintained? Here, we will cover all of the pertinent ins and outs regarding successful business communication. Although it may seem like an obvious topic, we have found that many business owners undervalue the importance of a company that communicates well. Others do not even include good communication in their list of business objectives. Setting up a successful, rewarding and lasting business communication process is essential for a business at any stage of its lifespan. Whether your small company is just getting going or your large corporation could use a boost, we have some important information to share about the nature of communication and its overall value. Let’s get started.

Business Communication, Defined

In a business sense, communication can be defined as the process through which management and employees interact with the purpose of defining and reaching company goals. The purpose of this type of employee interplay is to reduce the tendency for errors and improve the organization. Why is business communication so integral for businesses? Excellent business communication can make it easier for a company to:

Send and fulfill orders
Make plans and write proposals
Execute decisions
Present new business ideas
Reach agreements
Sell products/services successfully
Hold effective meetings

Basically, we can suggest that all logical and orderly company activity within a business relies on proper communication. This means technical communication with vendors, as well as communication between managers and workers, or even communication between a CEO and the rest of the company.

The importance of well-executed business communication can be seen when we analyze businesses that are not operating effectively. Many times, struggling companies have one thing in common: a lack of clear communication among employees. In fact, research shows that without dynamic communication, business systems begin to fall apart. Many internal communications professionals fail to measure internal communications, and this is a difficult path to go down and, for some, the beginning of the end. Why do companies not measure or monitor such an important aspect of their businesses? Some admit that they do not know how to start the process or what the next steps should be. Others profess that they do not understand how exactly to calculate the return on investment or ROI.

It is a fact that some individuals think that attempting to measure and improve business communication is a waste of time and that there are more important things to work on. However, research tells us that efficient company communication results in better engagement of employees. In fact, businesses with engaged workers register approximately a 19.2% increase in operating income across a single year. Companies with low engagement scored 32.7% less than this and therefore earned less. Consider this: how many more goals could your business meet with better overall employee engagement?

Categories of Business Communication

There are a few different types of business communication within a normal company.

1) External Business Communication

This type of communication leaves the office as well as internal staff. It deals with vendors, customers, or other parties who impact the status of your brand. This is also known as “messaging.”

Receiving assignments and instructions that go downward and/or upward.

This includes effective assignments given from one person to another. Most problems in business begin with unclear dialogue in this area.

Decision-making in meetings and discussions, plus problem-solving.

The most important discussions for any organization involve improved communication technology and better critical thinking skills.

The sharing and discussing of information, including in-meeting.

When a company suffers because tasks are not getting done, it can usually be traced back to failures in this area.

Provide feedback, discipline, and corrections to subordinates to you, so they are equipped with the tools and know-how to help them work more effectively.

The importance of providing excellent feedback to employees is a key trait of all great leaders. Leadership also often includes body language and gestures.

2) Internal Communication

Internal business communication consists of three sub-categories. Let’s identify all three.

Upward Communication: this type of interplay originates with a subordinate and goes to a manager, or perhaps from someone who is above even the manager.
Downward: This dialogue goes from a superior down the chain to a subordinate.
Lateral: Also called internal communication, this sort goes sideways or across the department and can be seen as a discussion between coworkers.

The Means of Business Communication

We can separate effective business communication into two distinct categories: written and verbal. We can also ascertain that this sort of communication can take place in-person or remotely, especially these days. It is important to note that whether verbal or written or face-to-face or remote, business messaging is invaluable. Context is key here in terms of what methods of communication will work for your business.

Verbal Communication: Can encourage brainstorming and idea generation, as well as a flow of free-form thoughts and ideas that can translate to breakthroughs. Think about progressive ideas that are thrown into the air and theories that are “off-the-cuff.”

Written Communication: Relied upon for maintaining a valuable record of the actions and decisions that take place during each meeting and overall workday. Written business messaging is also excellent for putting together concrete plans for the future and identifying (and not forgetting!) dynamic new strategies and vibrant new ideas.

Business Communication Based on Office Types

All of our offices are different. Some of us work in a single, open office, while others have cubicles or offices where we can close the door and separate ourselves from others. We work in different time zones, and increasingly, many of us work from home. Luckily, there are means of business communication that are applicable to all different scenarios, from the traditional to the new age.

1) Conferencing via Video

Systems such as Zoom skyrocketed in popularity during the Covid-19 pandemic and continue to do so. This is for a good reason: Zoom and similar competing platforms enable employees who are working at uniquely remote locations to oversee and participate in meetings that feel real. While not as efficient or stimulating as in-person meetings, video conferences have taken phone meetings to a new level.

2) Communication via the Web

Internet-based communication has become ubiquitous in every sector of the business world. Employees and their supervisors and managers interact successfully through email, instant messaging, and even chat features on platforms such as Slack and Google Hangouts. This type of instant communication has revolutionized and revitalized the corporate workplace over the last decade. Emails and messages enable employees to engage in private dialogue within a competitive business environment. These channels also enable supervisors to share instructions with many people at once.

3) Phone Chats and Meetings

It may seem rather antique, but the use of phones in the workplace changed the dynamics of business operations many decades ago and continue to do so. We still rely on one-on-one and group calls to make quick decisions and reach anyone in the world. Companies exchange ideas, and employees even can decipher mood and tone from hearing peoples’ voices, as opposed to only having written dialogue. All of this has been accelerated by the internet, smartphones, the use of hundreds of different apps, and cloud-based communication systems.

4) Meeting Face to Face

Many believe that in-person meetings are the most crucial to developing ideas and then moving forward. In fact, research tells us that meetings held in-person produce more concepts than virtual meetings or those held over the phone. Notably, an agenda or plan for an in-person meeting is essential because it keeps things moving smoothly and things never stagnate. When meetings slow down, or no one knows who is due to speak or present next, some employees decide that they are better off working on their own and leave.

5) Documenting Activities and Producing Written Reports

Having a written document to refer to during a meeting or even at one’s desk lessens the opportunity for conjecture, confusion, or even disagreements to arise. In all professions, documenting office activities is an essential aspect of good business communication.

6) Management Undertakings for Customers

Business communication at its finest can include reviews made by customers about a business, chat support, customer relationship management systems, customer onboarding, and more. Basically, all customer relations activities can be included here, with the most important part is developing a fluid sense of communication between customers and the company itself.

7) Communicative Surveys

We are all familiar with being tasked with a survey after a phone call or online chat session, but for a good reason. Customer surveys, as well as internal surveys, are an excellent way in which to collect ratings and feedback on the topics that companies care about. Although sometimes it can be difficult to incentivize them, even if only a fraction of customers participate in feedback through surveys, this presents the business with an honest cycle of opinions and feedback and an open channel from customers all the way to top executives.

8) Presentations

Whether taking place in large group meetings, or smaller discussion groups, presentations are a way to show what employees have been working on, and in summarizing their work, also illustrate their new ideas for the future of the company. These days, there is no shortage of channels through which to vividly present ideas, from PowerPoint to platforms such as Slack. Business communication centers on asking strong questions and providing excellent answers, and presentations allow employees and their supervisors to do just that.

9) FAQs, Forum Boards, and More

Strong business communication is all about sharing new ideas, and having a space for workers to post questions and check out frequently asked questions by other employees is a highly productive idea that many successful offices have employed.

Applying The Means of Business Communication to Your Specific Office

At this point, the question becomes not why a business would want to improve their overall sense of communication but how these changes would be implemented. Of course, this depends on the size and type of the company, and it is integral to remember that not all business communication methods will work for each company. It is also important to remember that if you are adding new methods of business communication to your company, you should choose wisely. Many businesses make the mistake of adding all sorts of new and different activities, technologies, and scheduled meetings, only to find they do not have the time or resources to take advantage of them. Business communication should save you time and money, and not the opposite.

Employers should take the time to find out what the business itself needs and what would truly facilitate communication before taking the leap. Why not embrace some of these business communication ideas early on, and poll your company regarding what methods they think would enhance office communication? Conduct surveys and gather information so that you decide to take the best route for your unique business.

For example, an employer wants to avoid setting up a forum board just to find that no one is using it because everyone has switched to Slack. Another example would be the implementation of the newest business phone system. Once it is set up, the employer notices that no one is using it because everyone is video chatting on Zoom instead.

Knowing your employees and understanding their communication needs is important. It also helps to stay on the cutting edge of technology and try to anticipate which methods are trends and which are here to stay. Web-based communication has become ubiquitous, but now there are a plethora of choices to make on top of that. It is best to base these on the circumstances, interests, and future goals of the business.

Trouble Communicating With your Colleague?

How Business Communication Can Help Eradicate Company Problems

Hopefully, it is becoming clearer that a company that is proficient in business communication has more of an advantage in nearly every category. From teams to managers, from employees and workers to executives, dynamic business communication compels everyone to perform their duties as well as they possibly can and remain diligent about fulfilling their responsibilities to the company.

One aspect of business communication that is overlooked is that the process is inspired by the tools that one chooses to use. These tools, many of which we have already touched on, vary based on the type of the business, the business sector, and even the nature of the employees. The heads of the company, then, should be familiar with the interests, skills, and overall culture of their employees and able to tailor their communication plans to these traits. When the tools given to a particular set of employees are wrong, there is no ongoing flow of information, and some employees are left out. Business communication is about cohesion.

Many problems facing companies these days focus on this lack of cohesion or flow. Especially these days, as many of us work remotely; it can be difficult to build a brand aesthetic and create a group of employees who share the same work ethic and set of beliefs. When some employees are simply not receiving all of the office information or reading or seeing a different set of guidelines and rules than others, the business can suffer in a variety of ways. Businesses without clear communication have no sense of unity or togetherness, and this translates to apathetic and dissatisfied workers, unhappy customers, and lost profits.

How can establish an improved send of business communication aid your business? In a variety of ways. Let’s take a look.

1) Customer Services that Suffers

When a company’s employees do not communicate clearly or effectively, customer service suffers. There is a clear link between communication within a company and communication between the company and its customers and prospective customers. Here is the chain of events that can impact a business based on a lack of emphasis on communication. First, employees lack information, feel out of the loop, and overall lose a sense of investment and fulfillment in their jobs. Second, the customers—the most important aspect of a business, perhaps—easily sense this lack of motivation and begin to share in the negativity. Third, the cycle perpetuates itself and worsens. Research tells us, in fact, that overall customer satisfaction is influenced by the attitudes of workers. It also tells us that happy customers are directly related to profits and revenue.

2) Employee Engagement and Turnover

If employee engagement is low and employee turnover is high, it is not an overstatement to say that business communication could get things back on track. Losing employees who you rely on instantly jeopardizes a business, and it is important to take a hard look at the reasons why this occurs and what an employer can do to stop it. Constantly having to search for new employees is expensive and time-consuming as well, since losing one worker can cost a business as much as twice their salary. However, instituting new methods of clear, concise business communication can help to fix these lingering problems and give the company a chance to recover, reset, and move forward. Research tells us that when companies practice effective business communication, they are more than 50% more apt to report lower turnover levels than the average in their respective industry.

3) Vertical and Horizontal Communication

One of the hallmarks of fluid business dialogue is that different teams and unique departments talk to each other regularly. Sometimes, a company can become divided among departments through no fault of its own, especially in larger corporations. When departments and different teams do not exchange information and dialogue with each other, common goals can become erased.

Another issue that involves vertical conversation occurs when an employee feels uncomfortable about or is unable to reach out to a manager or supervisor. In the worst cases, these workers are ignored. When these isolation chambers occur, they are often called “silos” of communication, and it is important to address them in any business communication plan.

4) Excess Emails, Poor Productivity, and Unclear Goals

If you ask most modern-day office workers, they receive upwards of hundreds of emails per day. This is obviously overwhelming and can lead to a lack of daily progress. One of the keys to an effective business communication system is that it can reduce digital distractions. Learning to reorganize email and separate personal from work-related is a solid first step and can create valuable space not only in our inboxes but in our heads, to be replaced with new ideas and positive thinking.

5) Remote Employees and Office Interaction

Pandemic or no pandemic, remote work has landed, and it is surely here to stay. One only has to look at the nature of office workers across America’s cities and see that office spaces are shrinking, and remote productivity and satisfaction are rising. One of the largest obstacles within the field of remote work is maintaining clear communication with remote employees who are often on different schedules than others. With the right communication plan, companies can improve collaboration with their growing list of remote workers and make sure they still feel like part of the team.

Setting Up A Business Communication Plan

As is true with anything else business-related, a solid plan and outline will save time and money in the long run. When companies seek to improve the overall satisfaction of their customers and employees, they should look no further than a comprehensive, concise business communication process.

A good plan begins with an honest appraisal of what is working and what is not. Often, an employer can simply ask workers, in the form of messages (which can be anonymous) or surveys, why they feel that communication is difficult or nonexistent at the company and how they feel things can be improved. Often, employees are eager to weigh in and cite things like dishonesty, irrelevant information around the office, exclusion, formation of cliques, lack of vertical/horizontal dialogue, lack of access to crucial information, and an overall failure to create an open environment of cohesion.

In fact, research tells us that close to 86% of educators, employees, and even top executives cite a lack of efficient communication as the main reason behind problems, misunderstandings, and failures at work. For a long time, the importance of team chemistry and communication has been emphasized in sports fields but underemphasized in offices across America. However, businesses are beginning to wake up to a new era, where communication is not only key but king.

Here are a few ways to ensure that a business can meet its communication goals and even surpass them.

1) Do Not Use the Tools at Your Disposal: Use the Correct Tools

There is no recipe for employers to follow that identifies the correct tools, programs, platforms, or devices for a specific office or industry. This is because as much as we can make generalizations and attempt to collect data about business dialogue, every office is different, and what works for one may simply not work for the others. Each workplace is a collection of unique individuals with different talents and preferences. One person or group may work more effectively with Google Drive, while another will find Dropbox has the features they need. Outlook might produce great communication for one workplace, while another will swear by Gmail. It is important not to overemphasize these contests, though, because an employer with a quality business communication plan will be able to get the most out of their team regardless of the strengths and weaknesses of different tools.

As an employer and their teams begin to develop a new business communication philosophy, however, they will need to make some important choices. The specific brands and plans you use are up to you, but here are some suggestions regarding how to set up a clear, simple, and user-friendly plan.

To start, put in place a uniform phone system in all of your offices, and if you conduct more than half of your meetings remotely, choose a system that is specifically set up for that.
Employing one single tool for chatting and inter-office messaging is a good start. Division within the ranks can grow as some people are on Gmail Hangouts and others are congregating and sending important messages on Slack. The key is to find something that is easy for everyone is able to use that promotes cohesion and togetherness.
A cloud storage system can help to save important documents, recordings, and other crucial data. Backing up this information and syncing it automatically will ensure that you will never spend all day searching for one idea, just to remember that you never saved the memo from the meeting. Calendars and emails should also be collected on one platform, such as Outlook, as opposed to two or three.
One thing we have continually emphasized here is that all communication must be unified, from employer to supervisor, from internal sources to external sources. One message, one community, and one company ethos should coordinate the efforts and aims of the brand. Consistent editorial guidelines should be followed, and all writers should use a consistent tone and voice. Unity is key in communication and elsewhere.

2) Delineate Clear Methods of Communication

Next, consider what communication means to sync with your specific company goals. The key here is to facilitate quality interactions among the intelligent, motivated individuals who make up your company. Each business is different, but below is a checklist to consider. You will probably not want to focus on all of these, especially as your prepare your first communication plan.

Surveys of Employees, Customers, and Clients
Meetings Done Face-to-Face
Video Conferences
Telephone Calls / Video Calls
Forum Boards
Official Documents and Reports
Presentations
Customer Management Activities

Questions to Ask:

Which of these will help your company achieve its goals?

Which of these might create resistance among your employees?

Which of these are too risky, based on simply adding too many tools or too much information too fast?

For example:

A startup consisting of six people where everyone works in the same office will likely focus on:

Web-based Dialogue
Managing Customers
Face-to-face Meetings
A 100-person company that has gone fully remote will focus on:
Video and Phone Conferences
Document Organization and Tracking

A significantly larger, perhaps global corporation will use all of these tools and more, yet they will still have a well-prepared business communication plan that coordinates employees and teams, remote and otherwise, into one cohesive unit.

3) Use Auditing to Set Realistic Goals

By now, it should be fairly obvious what kinds of advantages a business communication plan can provide for your company. It does not matter the stage, level, or size; communication can transform an average business into one that performs at a high level. This is based on an efficient flow of information that places everyone on the same page and begins with a plan that is both comprehensive and unique to your company.

To start, an employer should focus on the areas that are in need of the most significant improvements, then create a one-, two-, or five-year plan to address the rest of the issues or areas of growth going forward.

If your business suffers from any of the issues listed below, it is time for a new business communication plan:

Overall lack of transparent information, based on remote work
Low outputs of productivity in most/all areas of the business
Poor employee satisfaction, poor customer satisfaction
Speedy growth accompanied by more and more disorganization

Perhaps your business is not experienced any of these issues, but you can indeed identify 3-4 different problems that are setting you back. Make a list, and then set goals for overcoming these information-based issues. You might focus on:

Increasing interactions among departments
Completing more projects per day, month, or quarter
One particular employee satisfaction or turnover rate
Rate of customer satisfaction and happiness

These are obviously not strict guidelines or prescriptions, but they should provide a sense of how business communication is strongly related to company performance.

4) Identify The Groups and Teams that Make Up Your Company and Become Familiar With How They Interact

When an employer understands how their workplace is set up, they can work on improving a sense of synthesis among the different groups and offices. Each group might be working on different aspects of the business and possess different goals—but they should all have access to the same information and be able to speak freely with each other. This is sometimes a rarity in the business world, but it will allow the company to function as a cohesive whole. Your company’s groups may vary, but here are a few big-picture categories:

External groups: partners, customers, suppliers, and more
Vertical classification: team leaders, managers, executives, and more
Horizontal classification: departments (design, operations, human resources, sales, marketing, customer support, finance, and more)

When you examine these groups, consider the work they accomplish on a day-to-day basis. What role do they play in the company? What do you expect of these different leaders and groups, and have they been equipped with the correct tools to aid them in their pursuit of company goals?

Now, outline the different connections between these groups. How can they communicate with each other in a more advantageous fashion?

An employer’s questions might include:

Which processes or projects can only be completed with approval from other people in the company? How are approvals facilitated, and can the process be streamlined?
Are there any problems with the reporting process, and are leaders and supervisors progressing in their day-to-day tasks? What about common goals?
Which teams and people need to communicate about sensitive matters daily? What about monthly, weekly, or bi-weekly?
What horizontal or vertical dialogue occurs only when the office is facing an emergency?
Is there a way to reduce unnecessary meetings and conversations, such as the use of new technology? Do employees/workers have suggestions?

Asking employees questions such as this not only provides answers and suggestions—it shows workers that they matter. It also shows them that their company cares about the information they receive and how difficult or easy it should be to locate information relevant to their work.

5) Documentation Really Is Communication

As you devise a dynamic new plan for office communication, take note of all the changes you implement. Whether your plan works flawlessly or you find you need to make some adjustments, you will be glad you have the records to fall back on. Even more importantly: make these notes transparent for everyone involved in your company. You can even have them add their own notes, depending on the size of your business.

Once you have a document representative of your business communication plan, you will have a map of the changes that you have made and a list of the tools you have decided to implement. In situations of adversity, employees will be able to refer to the plan when they are not sure what to do and ask others how they dealt with similar situations. The sharing of ideas is one of the best aspects of business communication, and the more it is practiced, the easier it becomes.

News Flash: Business Success Starts with Direct Communication

When a company is mired in poor communication and dialogue, they are susceptible to risks. These can include a lack of trust, poor productivity, unhappy employees, and unsatisfied customers. A lack of dialogue within and across a business creates a wealth of problems.

On the flip side, excellent communication has been linked to new ideas, better output, increased profits, happy employees, and higher revenue. It would be impractical to ignore the proven results that come with improved business communication.

Regardless of whether you are searching for a brand-new company communication plan or looking to improve your current plan, here are our last few recommendations. If you have ore questions about business communication or are still dealing with business problems based on a lack of communication, contact Nakase Wade. Our California business lawyers and corporate attorneys can help you deal with any lasting problems plaguing your business, so you can start improving your sense of company-wide communication with a clean slate.

Analyze and document the needs of your employees. Seek out ways to help them communicate with each other more easily and identify methods that make this new flow of information possible.
Identify every worker who is involved in the processes that make your company succeed and grow on a daily basis.
Return to your communication goals often, based on the current state of communication performance in your company. Allow your employees to tell you, through surveys and other dialogue, how things are going.
Search out the most suitable and cutting-edge platforms and tools, but make sure they fit in with your chosen methods.
Share your plans for business communication with the entire organization.

As a result of these actions, you will arrive at work each day to be greeted by motivated people who are full of new ideas and anxious to get started. Good luck with all of your business communication goals.