Business communications are the process of sharing information between employees within and outside a company.
Effective business communication refers to the interaction between employees and management aimed at achieving organizational objectives and fostering alignment with the company’s fundamental values. Its primary goal is to enhance operational procedures, dismantle barriers, ensure employees are well-informed, and minimize mistakes.
Unlike casual conversations, business communication is consistently focused on achieving specific goal objectives. Therefore, communications plays a crucial role in the success and expansion of any organization.
Internal communications as the basis
Internal communications refers to the exchange of information, messages, and interactions within an organization among employees, departments, and management.
It aims to inform, engage, and align employees, fostering collaboration and a positive work culture. It involves sharing company updates, goals, policies, and promoting two-way dialogue and knowledge sharing among employees.
A traditional approach differentiates 4 types of internal communications.
Vertical communication encompasses both upward and downward flows of information within the organizational hierarchy. It allows for dialogue between different levels of management and employees and promotes a balanced exchange of ideas, feedback, and information. It enables employees to provide input and suggestions to higher management while also receiving guidance, clarification, and recognition for their work. This type of communication helps to bridge the gap between different levels of the organization and creates a culture of mutual respect and understanding.
Downward communication refers to the flow of information from higher levels of management to lower levels within an organization. It is characterized by directives, instructions, and guidelines being passed down to employees. Typically, top-down communication is used to convey organizational goals, strategies, and important announcements. This type of communication ensures that employees are aligned with the overall vision of the company and understand their roles and responsibilities within it.
Upward communication, on the other hand, involves information flowing from lower levels of the organization to higher levels. It empowers employees to share their ideas, concerns, and feedback with management. Bottom-up communication is essential for fostering a sense of inclusivity, encouraging innovation, and capturing valuable insights from those who are directly involved in day-to-day operations. It enables employees to contribute to decision-making processes and promotes a culture of open dialogue and transparency.
Horizontal communication occurs between individuals at the same hierarchical level within an organization. This type of communication facilitates collaboration, teamwork, and knowledge sharing among colleagues. Peer-to-peer communication is valuable for problem-solving, brainstorming, and seeking advice from co-workers who possess similar expertise. It fosters a supportive and cohesive work environment, promoting synergy and enhancing the overall efficiency and effectiveness of teams.
These various types of internal business communication play crucial roles in establishing effective and productive workplaces.
But internal business communication can quickly become complicated and complex due to several factors. Organizations often have multiple departments, teams, and individuals working on various projects simultaneously. This creates a need for efficient coordination and information sharing across different units, leading to a complex web of communication channels. Additionally, remote-work or geographical dispersion makes face-to-face communication even more challenging.
This is a graphical representation of a company with only 11 employees and examples of various communications paths it can lead to:
It can very quickly become a tangled mess. Moreover, the diverse nature of communication needs within an organization adds complexity – there is a mix of formal and informal communication, sensitive and confidential information, and different levels of urgency.
Without a well-organized system in place, important messages may get lost, delayed, or misinterpreted, leading to misunderstandings and inefficiencies.
A system of digital channels is crucial for organizing internal business communication due to its ability to streamline information flow, facilitate collaboration, and ensure accessibility. Digital platforms offer centralized hubs where employees can access relevant information, documents, and resources. They provide various communication tools like email, instant messaging, video conferencing, and project management software, enabling real-time interactions and effective collaboration regardless of physical location.
Furthermore, digital systems allow for the categorization and organization of communication channels based on different topics, projects, or departments. This ensures that information is readily available and easily searchable, reducing the chances of important messages getting lost or overlooked.
Why are internal communications so important?
Because it helps everything run smoothly and keeps everyone connected. It’s like having a roadmap or a set of rules that guides how people talk and share information with each other.
One of the key reasons why it’s important is because it helps people work together effectively. Imagine if you were playing a game with your friends, but no one talked to each other or shared their ideas. It would be really difficult to win, right? In a company, good communication allows employees to share information, work on projects together, and understand their roles and responsibilities. It helps everyone stay on the same page and work towards common goals.
Another reason why it’s important is because it helps avoid mistakes and confusion. Think about when you’re following a recipe to bake cookies. If the recipe doesn’t tell you how much sugar to add, you might end up with really sweet or not-so-sweet cookies. In a company, if people don’t communicate well, important information can get lost or misunderstood. This can lead to mistakes, missed deadlines, or even upset customers. Good communication helps ensure that everyone has the right information and knows what they need to do.
Having a system of communications in a company also makes people feel valued and connected. When everyone is included and informed, they feel like they are part of a team. It’s like when you and your friends listen to each other and respect each other’s ideas. In a company, good communication creates a positive work environment where people feel heard and supported.
It helps people work together, avoid mistakes, and feel like they belong. It’s like having a roadmap that guides everyone in the right direction and keeps things running smoothly.
Numerous studies have highlighted the positive impact of effective communication on organizational success. Here are a few key findings:
- Employee engagement and productivity: Research shows that organizations with strong internal communication systems tend to have higher levels of employee engagement and productivity. Engaged employees are more committed to their work, have higher job satisfaction, and are more likely to contribute their best efforts. Effective communication fosters a sense of belonging, alignment with organizational goals, and provides clarity about expectations, resulting in improved performance.
- Reduced conflicts and improved collaboration: Good communication practices have been linked to reduced conflicts and improved collaboration within teams and departments. Clear and open communication channels facilitate the resolution of issues, promote understanding, and prevent misunderstandings or misinterpretations that can lead to conflicts. Collaborative environments foster innovation, creativity, and effective problem-solving.
- Organizational alignment and goal attainment: Effective communication plays a crucial role in ensuring that everyone in the organization is aligned with the mission, vision, and goals. When employees have a clear understanding of organizational objectives and how their work contributes to those goals, they can make informed decisions and prioritize their efforts accordingly. Research suggests that organizational alignment positively affects performance and goal attainment.
- External reputation and customer satisfaction: Strong external communication practices contribute to building a positive reputation and enhancing customer satisfaction. Clear and consistent messaging, effective marketing campaigns, and prompt customer responsiveness help organizations establish trust, credibility, and strong relationships with their customers. Satisfied customers are more likely to become loyal advocates and recommend the organization to others.
What happens when you don’t have a system of internal comms?
The absence of a system of internal communications can lead to a lack of clarity and direction, fragmented information flow, reduced employee engagement, increased conflicts, missed opportunities for innovation and collaboration, and difficulties in managing change effectively.
Here are the most common consequences of not having a system of internal communications explained in more detail:
- Lack of clarity and direction: Without a structured internal communication system, employees may struggle to understand their roles, responsibilities, and the overall direction of the company. This can lead to confusion, inefficiency, and a lack of focus on strategic priorities.
- Fragmented information flow: In the absence of a communication system, information may be shared sporadically or inconsistently among employees. This can result in important details being overlooked or lost, leading to misunderstandings, errors, and missed opportunities.
- Reduced employee engagement and morale: Without effective internal communication channels, employees may feel disconnected from the company and its values. This can result in decreased engagement, lower morale, and a decline in overall job satisfaction.
- Increased risk of conflicts and misunderstandings: In the absence of clear communication, misinterpretations and conflicts can arise more easily. Without proper channels for resolving conflicts and clarifying misunderstandings, tensions may escalate, leading to a negative work environment and strained relationships among employees.
- Missed opportunities for innovation and collaboration: Without a system of internal communication, employees may lack the means to share ideas, feedback, and knowledge across departments and teams. This can hinder innovation, limit collaboration, and prevent the organization from leveraging the diverse expertise of its workforce.
- Difficulty managing change and adapting to new initiatives: Change management becomes more challenging without a structured internal communication system. Employees may struggle to understand and adapt to changes in processes, procedures, or company strategies, resulting in resistance, confusion, and decreased productivity.
What exactly is meant by external communications?
External communication refers to the exchange of information both within and outside an organization. Unlike internal communication, which is limited to communication within the organization, external communication involves interactions with external parties. In every business, external communication is vital, and dedicated departments or teams handle this function.
External communication can take both formal and informal forms. Formal external communication focuses on creating a positive company image and includes carefully crafted letters, reports, presentations, and web pages. The main objective of formal external communication is to convey important messages about the organization’s work and quality to the outside world.
Informal external communication, on the other hand, is not directly regulated by the organization. It occurs through everyday work activities as employees gather information and expand their knowledge about the organization. Whenever employees discuss the organization with external parties, they contribute to informal external communication.
External communication encompasses various components that play crucial roles in how organizations interact with their external stakeholders, such as customers, investors, media outlets, and the general public.
It is a multifaceted process that includes marketing and advertising to reach target audiences, public relations to manage the organization’s reputation, and employee testimonials to showcase the company’s culture.
Marketing and advertising are key components of external communication as they are responsible for promoting products, services, and brand messaging to target audiences. Through strategic campaigns, organizations aim to raise awareness, generate interest, and drive customer engagement. Marketing and advertising activities may involve digital and traditional channels, such as social media, print media, television, radio, and online advertisements, to reach and influence potential customers.
Public relations (PR) is another vital aspect of external communication. PR focuses on managing the organization’s reputation, building positive relationships with the media, and effectively communicating key messages to the public. PR professionals handle media inquiries, issue press releases, organize events, and engage in activities that shape public perception of the organization. They also handle crisis communication, ensuring that the organization responds effectively and transparently during challenging situations.
Employee testimonials are a valuable component of external communication, as they provide authentic insights into the company’s culture, values, and work environment. These testimonials serve as a means to showcase the organization as an attractive employer to potential job candidates. When employees share positive experiences, it can enhance the organization’s reputation, increase trust, and attract top talent. Employee testimonials can be shared through various channels, including social media, company websites, and recruitment platforms.
Collaboration between internal and external comms
Collaboration between internal and external communications enables a cohesive and consistent messaging strategy, strengthens the organization’s overall communication efforts, and enhances its reputation and relationships with stakeholders.
Here are some key reasons why collaboration between internal and external communications is crucial:
- Consistent Messaging: When internal and external communications collaborate, they can ensure a consistent and aligned message across both internal and external channels. This prevents conflicting or contradictory information from being shared, which can create confusion or erode trust among stakeholders.
- Brand Alignment: Collaborating between internal and external communications helps to ensure that the organization’s brand identity, values, and messaging are reflected consistently across all communication channels. This alignment enhances the organization’s reputation, reinforces its brand image, and presents a unified front to stakeholders.
- Employee Advocacy: When internal and external communications work together, they can leverage employees as brand ambassadors. Internal communications can inform and engage employees about external messaging and initiatives, encouraging them to support and promote the organization’s brand externally. This employee advocacy can enhance the organization’s credibility and reputation among external stakeholders.
- Stakeholder Engagement: By collaborating, internal and external communications can coordinate efforts to engage and communicate with various stakeholders effectively. Internal communications can provide valuable insights about employees’ perspectives and concerns, which can inform external communication strategies and help tailor messaging to resonate with different stakeholder groups.
- Crisis Management: During a crisis or challenging situation, collaboration is crucial. Internal communications can keep employees informed and aligned with the organization’s messaging, while external communications can manage public perception, address concerns, and maintain trust with external stakeholders. Coordinated efforts ensure a unified and effective crisis communication response.
- Feedback Loop: Collaboration allows for a feedback loop where insights and feedback from external stakeholders can inform internal communications strategies and vice versa. This feedback loop helps to continuously improve communication efforts, address any gaps or misconceptions, and strengthen relationships with stakeholders.
Generally, collaboration between internal and external communications is essential to maintain consistency and by working together, these functions can enhance the organization’s reputation, build trust, and achieve its communication goals.
Interconnection between communications
Internal and external communications are not always strictly divided. They overlap in various areas, such as the company website, social media, webinars, events, and content creation.
The website serves as both an internal and external communication tool, providing information to employees and stakeholders. Social media platforms enable internal collaboration and external engagement. Webinars and virtual events can educate employees and connect with external participants. Content creation serves both internal knowledge sharing and external thought leadership purposes. These overlaps allow organizations to streamline communication, maintain consistency, and effectively engage with both internal and external audiences.
So, how to organize internal communications?
When just starting to organize a system of internal communications, there are 5 important steps:
- Assess Communication Needs: Understand the communication requirements of your organization. Identify the key objectives, challenges, and areas where effective internal communication is crucial. This could include areas such as disseminating important updates, improving collaboration, enhancing employee engagement, or addressing specific pain points within the organization.
- Define Communication Goals: Establish clear goals for your internal communication system. Determine what you want to achieve through improved communication, such as increasing employee awareness, fostering a collaborative culture, improving alignment with organizational goals, or enhancing employee feedback and participation.
- Identify Key Stakeholders: Identify the key stakeholders within the organization who should be involved in or impacted by the internal communication system. This may include employees at all levels, managers, department heads, and any other relevant parties. Consider their needs, preferences, and communication styles to tailor the system accordingly.
- Establish Communication Channels: Choose appropriate communication channels based on your organization’s needs and the preferences of your stakeholders. Select channels that enable effective and efficient communication. It’s very important to pick the right technology for your needs, so choose your digital solution wisely.
- Encourage Feedback and Participation: Foster a culture of open communication by encouraging feedback and participation from employees. Provide platforms or mechanisms for employees to share their thoughts, suggestions, and concerns. Actively listen to their feedback and incorporate it into your communication practices to improve engagement and address any gaps.
Remember that building an effective internal communication system takes time and ongoing effort. It requires active involvement, continuous improvement, and a commitment to nurturing a culture of transparent and open communication within the organization.
You need to be flexible and adapt your internal communication system based on evolving needs, technological advancements, and feedback. Additionally, regularly review and refine your strategies to ensure they align with the changing dynamics of your organization and the communication preferences of your stakeholders.
Both internal and external communications are important for the overall success of a company, but their significance may vary depending on the context and specific goals of the organization.
It’s worth noting that they are also interconnected. A company with strong internal communications is more likely to have employees who understand and effectively communicate the organization’s values, mission, and offerings to external audiences. On the other hand, positive external communications can positively influence internal morale and pride in the company.
Striking a balance between the two and ensuring effective communication flows both internally and externally is key to achieving overall success and sustained growth.
As this is a wide topic, we will get back to it in future articles with more practical examples and solutions, so keep following!