A new study provides further support for the idea that organisations that communicate effectively dramatically outpace organizations that don't, in terms of ROI.
The Watson Wyatt survey found
* A significant improvement in communication effectiveness is associated with a 29.5 percent increase in market value.
* Companies with the highest levels of effective communication experienced a 26 percent total return to shareholders from 1998 to 2002, compared to a 15 percent return experienced by firms that communicate least effectively.
* Organizations that communicate effectively were more likely to report employee turnover rates below or significantly below those of their industry peers.
How is effective communication a key driver of superior performance?
It comes down to connections:
* Employees feel connected to the business and understand how their actions can support it.
* New employees exhibit solid connections to the company culture starting from their initial days on the job.
* Communication quickly connects employees to changing business challenges, facilitating faster adjustments to fluctuating market conditions.
* Management effectively connects with employees through strong leadership during organizational change.
Communicate effectively and you can drive business performance by:
* Building a strong foundation of formal communication structure and processes, which rely on employee feedback and use technology to connect with employees effectively
* Dealing directly with the strategic issues of change, continuous improvement and business strategy integration and alignment
* Creating real employee behavioral change by driving change in managers and supervisors behavior and by creating a line of sight between employees and customers
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