Many executives and managers understand that coordinating the stream of quality information in their businesses and minimizing delays in gathering data are important to improving decision-making, accountability and performance in pursuing company goals. Top-level managers must ensure that everyone within the business receives the most relevant, useful information available, and that everyone understands how the data can be used to help the company meet its strategic goals.
An executive team’s detachment from the individuals on the front lines can include multiple layers of personnel and thousands of miles. Goals and expectations defined by top levels of management can easily become distorted or remain unspoken, causing field or mid-level managers to operate entirely on their own. For example, a sales and marketing department may continue to focus resources on increasing value-added services for existing accounts long after the corporate strategy had been redefined to expanding its presence in new markets. The new strategic plan may be excellent, but will likely fail if it has not been effectively communicated to the whole organization.
The challenge is enhanced when separate components of information come from deficient, uncoordinated reporting systems, making the data incompatible or even contradictory. This cascade of information may have been initially accurate, but can become mistakenly distorted as it is communicated down the line. Furthermore, even if the information is correct, the ability or time to drill down for more insightful details may not exist. Regardless of its accuracy, data that has not been thoroughly analyzed or has been delayed in processing will be useless — or even misleading — when management is trying to make an informed decision.
To best improve accountability and performance, managers need quality information to be communicated among the business’s different departments. For example, coordinating the efforts of sales and marketing with other departments can help operations be more effective. Accurate sales forecasts allow manufacturing to plan production and help finance allocate resources more precisely. Additionally, information from manufacturing will have an impact on purchasing and human resources needs. When businesses successfully ensure that quality information is communicated among its departments, the business can avoid waste when allocating resources.
A plan for effectively communicating data within different areas of a business must be strategically developed and implemented. Creating and refining such a plan should be a priority for top-level management and be part of the dialogue when discussing business development, client service and competitive threats. Businesses need a feasible way to connect accountability and performance with the organization’s ability to communicate between departments. With this link established, leaders can then effectively address company goals and expectations with their employees.
One way to help create this connection for employees is for top-level management to develop a chart of the entire organization that identifies all the areas where specific jobs and departments must communicate with each other. Once those links have been identified, everyone will have a better understanding about where those connection points are and how effective communication between them can drive business growth.
After this charting process is done, it then becomes possible to identify the networks that must be formed to ensure that quality information is communicated where it’s needed within the business, and that it cascades down from the strategy initiators to the tactical implementers. This type of flowchart will help make clear which individuals and departments need to know what information, as well as who needs to be held accountable for acting on that information. The chart can also make it easier for management to find both technical and business solutions that successfully address the company’s goals.
This planning process can offer significant payoffs. First, top-level management can articulate some of the organization’s biggest communication issues with minimal time and cost. Second, it provides a clear direction for those who are designing and implementing a communication system for meeting strategic goals, eliminating risky guesswork and reducing the likelihood of extensive rework.
Providing employees with high-quality, useful information should be a priority for top-level managers of every business. Only when everyone is on the same page can a business truly begin functioning as a unified whole and effectively meet its goals and performance expectations. Use the technology available today to your advantage by gathering and applying quality information to help your business realize double-digit growth.
Shannon Affholter is the Pacific Northwest region health care group business development executive with Moss Adams LLP. He can be reached at shannon.affholter@mossadams.com or 425-259-7227.
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