Communication
Why is communication important in any small business?
Communication is a key component in building a good foundation in any size business. There are certain dynamics that occur in small businesses that make achieving the level of communication you desire more difficult.
1. Most of the time, owners believe that since they see everyone everyday and speak to them, that they have good communication.
2. Most of the time, communication within a small business will evolve over time into whatever you presently have, rather than the communication being part of a predetermined methodology set up by the owner or owners.
3. Most owners believe that since they are a small company, they don’t need things like reviews, meetings or memos because it would be a waste of their time and their employee’s time. It would not be productive.
4. Many times, owners truly believe that their staff knows what they are supposed to be doing and there is no need to have a system for communication in place.
5. In the absence of an underlying plan or process for communication, everyone tends to make up their own set of rules they follow. This usually has a detrimental effect on the owner or owners.
6. Many owners wonder why they can’t grow beyond a certain level of business and many times they have not created a system of communication that allows them to control the business whether they are on site or not or control multiple locations.
7. Most owners believe their employees know what is expected of them and then know what to do to achieve those expectations.
Let’s explore each of these and determine if they make sense for the owner or owners or if they are potentially keeping the owner or owners from being better managers and achieving the corporate goals that they desire. Once
again, the communication should be considered one of the key components in building a foundation for the small business owner. The value and
importance of good communication within a company cannot be stressed enough.
1. Just seeing and speaking to your employees everyday does not constitute good communication. There are far too many issues that can arise day to day and cause problems. Far more than casual conversation can address. Remember, it is important that your employees know what the expectation of them is and how they will be judged and what standards you will be holding them to. Effective communication, both written and oral will help achieve this result.
2. As an owner, you have heard the saying “When you fail to plan, you are planning to fail.” In the absence of an underlying methodology set in place by the owner or owners, an underlying methodology will evolve unchecked and that is not a good thing for the business. When things evolve on their own, the owner is usually on the short end of the stick in terms of productivity and profitability. The business will control them, instead of them controlling the business.
3. Being a small company does not mean that good communication is not necessary. If there are more than 2 people involved, there is an opportunity for miscommunication to take place and usually does. It is important to provide a good base of communication and let everyone know what the expectations of them will be and how we are going to monitor it. It is important for the employees to let the owners and managers know what is happening so we can reduce the opportunities for miscommunication to take place. Meetings, reviews and memos and other forms of communication will bridge the gap.
4. Having a senior staff or employees who have been doing something for a long time doesn’t mean that they are necessarily doing it the way you want it done. Once again, communication is one of the key components in effective management and ownership. In the absence of a clear-cut path, they will follow their own path.
5. This point cannot be overstated. Employees will generally take the path of least resistance if we let them. In the absence of an underlying plan, they will make up their own rules and regulations and expect the owner or owners to follow their lead. It is extremely non-productive and potentially devastating to the underlying business. They need a direction and a method to achieve it. Don’t assume that they are as concerned about the business as you are. Most of the time, they are not.
6. It is very difficult to grow a business beyond a certain point without a solid foundation of communication and organization. It’s important to keep the ship going in the right direction and have an ability to maintain control over it. Many times, owners assume that if they are successful with one unit, they will be very successful with multiple units. They may work 18hours a day to keep the single unit operating at a high level and because they have not put a good system in place, there is no way that multiple units will work. It’s a case of working very hard and not very smart.
7. How would an employee know what is expected of them if we, as owners, don’t tell them? They cannot read minds or understand bits and pieces of information that is just thrown at them once in awhile. Many times, they don’t know what the direction of the company is or how they are supposed to help the company get there. Never assume they know or understand what is expected of them unless we tell them. Usually, they don’t.
All this information is basically stating that if an owner or owners of a small business cannot measure, monitor and track the components that produce a result for their company, it is very difficult to control that result of the underlying company. Positive results won’t just happen, they must be achieved through a system designed to produce positive results.
Communication is one of the pillars for the underlying foundation of your company; don’t forget to put it into place. Once you put it into place, you must use it. Remember, the best system in the world is useless if you don’t follow through and use it.
