When does a lack of information cause board frustration and threaten profits?

When does a lack of information cause board frustration and threaten profits?

Running a company can be tough at the best of times, but it becomes increasingly difficult when the senior management are not aware of issues developing at the front line of their organisation.

Many business leaders think they know what is going on in their firm, but often key information is not well communicated. Further, many companies do not even have the right systems to capture the correct data in the first place, hence why it can’t then be utilised by the board to make well informed decisions.

Board members need to be aware when important issues occur, whilst not being bombarded with constant small requests. Getting the balance right is important for any business to maximise its success.

Business Aspects Magazine spoke to Paul Taylor from Strategic Change Partners to ask about the consequences of poor internal communication. “Without a well-integrated communication structure, management decisions are delayed and are often made using insufficient knowledge – further compounding the existing problems.”

Paul elaborated, explaining that “it can also result in a slowdown in growth as opportunities are missed and necessary actions are not taken.”

“Often, communication doesn’t happen until too late. Managers and directors don’t hear about problems until after they’ve occurred.”

Paul Taylor, Founder of Strategic Change Partners

Businesses facing this problem can see their competitive edge eroded, profits decline and contracts lost. Acting with inadequate information can directly cause customer dissatisfaction with a risk of losing their loyalty. Further, when important targets are inevitably missed, staff morale declines and the relationship between management and employees is worsened.

Effective communication channels need to be established to ensure that information flows smoothly throughout the organisation. We asked Paul about the consequences of better information sharing with an organisation. Here’s what he said:

“Once a system is put in place, a company will find that their whole organisation is able to operate more efficiently. Problems are solved faster; sales conversion rates go up and operations can flow more smoothly.”

For an example of how to establish an effective communication strategy, read this case study about a project recently undertaken by Paul Taylor from Strategic Change Partners.

Strategic Change Partners is an organisation devoted to providing expert support for businesses undergoing change or transformation. To understand more about the consequences of poorly communicated or inadequate information, contact paultaylor@strategicchangepartners.co.uk