Communication plays a part in almost every aspect of your business, so being able to communicate well can boost your overall performance.
Good communication is essential to building a cohesive and effective team. Good communication skills are essential to managing the performance of your team members, and if you know how to communicate well to large groups you can minimise the risk of industrial problems developing in your workplace.
Communication skills can be particularly important during times of higher workplace stress, for example during downsizing, where good communication is an essential part of change management.
You also need to communicate well to build and maintain effective relationships with your suppliers and clients. Communication skills are crucial to dealing with customer complaints effectively and limiting any negative word-of-mouth about your business. You can draw on communication skills when you assess the effectiveness of your marketing campaigns.
The first step in good communication is to listen effectively. Today’s trend is away from top-down management, where decisions and policies are proclaimed from above. Good managers now consult a lot with their teams, using them as a resource for information and suggestions.
Consultation is not only a good way to get ideas on business strategy, it is also a way of making sure that when you do decide on policies, everyone feels like they have been involved. Your team will be able to implement policies more effectively if they have been involved in their formulation. They will be more familiar with the issues - you will have dealt first-hand with any misgivings they may have.
Effective listening is based on having the trust of the people you are speaking to. People may not offer their true opinions when they are wary about how they will be received. So being a good communicator means winning the trust of those around you. It also means being able to foster a work environment where people treat each other fairly, where they respect each other’s opinions and where there is a minimum of anti-social behaviour such as backbiting or rumour mongering. Bullying or harassment of any kind will build walls in a workplace. It will stunt communication, shut down co-operation and hurt efficiency.
Good communication skills are a key part of managing individual employee performance. If you have good communication skills, you will know how to give clear feedback on performance while not denting people’s self-esteem. Good communication skills will enable you to work more closely with your team members, determine personal goals that will suit them and help them to work towards those goals.
As a good communicator, you will know the difference between being assertive and aggressive (aggression merely gets peoples’ backs up). You will be able to keep a professional and impersonal tone in the face of provocation and this will help you deal with conflict situations. It will also help you set clear boundaries for acceptable behaviour, counsel those who overstep them and, if necessary, fire people while minimising the risk of getting involved in litigation.
Good communication skills also help when you are dealing with suppliers and clients. Business operations are becoming very finely tuned, thanks to trends such as just-in-time manufacturing or retailing, where goods are delivered precisely at the right time and place.
This means you need to be able to maintain close contact with your supply chain. You need to be able to clearly explain any concerns you have and negotiate issues with a minimum of friction. Your business partners also need to feel confident that they can raise issues with you and that you will be responsive to them.
Being a good communicator will also help with your marketing. While you may not get closely involved with the design of your marketing materials you will want to assess them. Honing your communication skills will help you determine which materials are appropriate and they will enable you to give clearer briefs.
Team morale tends to be higher in a workplace where communication is good. People feel more in control when they have all the relevant facts and they are warned of issues well in advance. They are likely to feel more confident and secure when they know where an organisation is headed, where they have the information to plan their medium and long-term future. The more people feel in control, the lower their stress levels tend to be.
Good communication generally means being open. It’s useful to keep everyone updated on such issues as production, finance, important new contracts or company performance against health and safety benchmarks. Some employers like to ration such information, as it sometimes contains bad news. However, it’s often better to have bad news out in the open. It’s generally better for you to provide bad news, rather than having it leak out at an inopportune time and in a way that is distorted by rumour.
Being open, of course, does not mean being indiscreet. Where information is particularly sensitive, good communication involves identifying how to distribute information effectively on a need-to-know basis and deciding who needs to sign confidentiality agreements.
It also means being realistic about what can be kept under wraps. Public companies need to provide a lot of information as a condition of being listed. Private companies need to divulge less information publicly, but quite a lot of information seems to leak out through informal channels. For example, how much information have you picked up on your competitors through informal sources?
Good communication skills thus involve good PR skills. Knowing when and how to release information is an important way of maintaining your image with your team members, your clients and the market in general.
Basically, your skills as a communicator are felt in nearly all of your business dealings. If you and your team communicate well, you maximise efficiency. You find out about issues earlier and can deal with them without adding further complications or misunderstandings. Having good communications skills is like having a good IT system - information flows faster and this saves you money.
A beginner’s guide to B2B e-commerce
Business-to-business (B2B) e-commerce takes place when businesses are able to conduct their transactions, ordering and referencing electronically.
B2B exchanges or marketplaces can take two forms: the vertical supply chain in which the market is confined to a specific range of products or services relating to the businesses involved; and the horizontal supply chain, in which the supply chain covers a range of diverse services or products.
Both forms can offer your business significant advantages and benefits, such as the synthesis, streamlining and simplification of your business process. This relates not only to the time-savings that come with electronic communication, but also to the cost benefits involved.
If your business has its inventory, ordering and purchasing processes online, you allow for an electronic interface between your suppliers and buyers. This can drastically reduce transaction time, cut down paperwork and significantly slash the cost of conducting transactions.
In theory, placing your inventory online gives your buyers a far greater level of accuracy and reduces the opportunity for human error or confusion in the ordering process. B2B allows your business to feature stock quantities, inventory details, and processes in a readily accessible manner. An inventory will have each item stored in the database, allowing you to give buyers absolute access to and knowledge of the product they wish to buy.
“It is essentially a means of simplifying the business process, a process of electronic communication between businesses, locating the most obvious means of communicating,” says John Krivitsky of Pixeltech Design, a company that consults with and supplies B2B solutions to businesses. Krivitsky goes on to add, “This is not to say that B2B is for everyone. Businesses really need to think about whether it is in their best interests to adopt B2B.”
“Much of the day-to-day communication between businesses is actually best not conducted in this way. The information needs to be dynamic. If it helps to get the information out there more quickly then it is an advantage, but if the information is static then it is best conveyed in a traditional medium,” he says.
This mirrors the sentiments of Gustav Louch, of Qasar Computer Consulting, who points out that the significant hype surrounding B2B needs to be gauged in terms of a realistic outlook on what the current technologies are actually able to deliver. Having experienced B2B processes first hand through his business, Louch argues that many businesses are ill-equipped to integrate into B2B in real terms and that testing the waters may actually hurt the business.
“Businesses seem to think that putting a computer in place will free up
their staff, but in truth that system needs to be tended to and maintained. In my experience, the businesses you deal with simply haven’t got the infrastructure – “this isn’t available,” “that price is wrong,” “we’ll just send someone down to check if it’s in stock,” – the loop is not a closed one and so the process falls to pieces,” says Louch.
Louch goes on to add, “Many businesses want to get online, but they just can’t and I have seen lots of examples of this. There is often just not enough computerisation. Businesses need to really concentrate on their infrastructure.” Louch’s remarks underscore the extent to which you need to take care when embarking upon B2B.
The first step you need to take in implementing B2B is research. It is crucial that you obtain an understanding of what you wish to get out of the process and what you want to give your partners or clients. Looking at how other businesses have approached B2B e-commerce can be highly instructive.
It is equally important to understand the costs involved in setting up the process. As Krivitsky points out, “There are a variety of different processes but some are more useful whilst others are too high grade.” There is always the choice between off-the-shelf as opposed to custom-made products. Off-the-shelf may well be cheaper, but that depends upon the industry in which your business is positioned.
Sometimes an off-the-shelf product has been produced to cater to a specific niche market, making it more expensive than a tailor-made package. “The benefits and how will it affect what you are trying to do are what’s important, as opposed to the bells and whistles features. Bear in mind that the purpose is to automate or simplify a process of your business. If it does not do this then it is a waste of money,” says Krivitsky. “It must always be looked at from a commercial point of view.”
In the implementation stage, the developer has to appreciate your business’ viewpoint. The focus should always be on the desired business process, rather than the available technology. Implementing technology for its own sake is a common error, and a costly one. As Krivitsky puts it, “We always tell our clients to look at the usefulness involved in changing the operating procedure.” Make sure you look at all the options from a commercial viewpoint – there is no use in implementing a system if it costs more than it will earn your business over the long-term.
Beware of credit card fraud
As society becomes increasingly cashless, small to medium-sized enterprises (SMEs) are urged to become more vigilant in minimising their exposure to credit card fraud.
You need to have secure practices in place for handling credit card purchases, and must also ensure your team members follow the necessary procedures to the last detail. The counterfeiting of credit cards and the theft of identities for use over the Internet are among the newer practices in credit card fraud, according to Arthur Steele, expert on credit card fraud.
Steele says the methods employed by criminals are constantly changing in order to meet the challenges presented by tightened security and changes in technology. He strongly urges businesses to be vigilant at all times.
According to figures from financial institutions, credit card use has risen by almost 400 percent over the past five years. Accepting credit card payments is thus part of the every day risk of running a business. However, when a fraud is perpetrated it is the business that has sold the goods or services that will be slugged with the charge-backs if there has been a failure to comply with the credit card company’s requirements.
Retail consultant, Stan Moore, says the best way to prevent credit card fraud is to have a sound system in place and to know what is required by the card provider. Education provides the key to minimising the risk of falling victim to credit card fraud.
“It is the best way to protect a business from fraudulent activity … crooks always prey on ignorance,” said Moore, adding that team training in loss prevention should be part of any sound business management practice. All too often credit card payments are accepted without even a signature check.
He advises small business owners to not only provide the necessary training in correct procedures but also to be cautious about whom they employ. “A lot of casual labour is employed and business owners need to be wary of who they are employing,” he said. Once good people are in place, they then need to be trained in the correct procedures in dealing with credit card transactions.
Moore says selling goods and services over the Internet is “fairly dangerous”. “People can make whatever claims they like and hack into an account number generating system. Many of these are rejected but some do get through,” he said.
Another fraudulent practice is “skimming”, whereby credit card details can be downloaded and encoded onto another card. In a face-to-face situation when a credit card transaction is processed electronically and approved, it merely shows there is money in the account. It does not verify that the transaction is from the actual holder of the card.
At the point of purchase, signatures must be matched and, if in doubt, team members should know how to politely ask for some other form of identification. Telephone orders or purchases via the Internet are perhaps a greater risk and require additional enquiries to support the information provided. Checking the telephone number against the name listed in the telephone book is a good starting point. Also, the holder of the card should be available to sign upon delivery.
Here are some tips on preventing credit card fraud in your business:
- Never send goods ordered over the telephone, by mail or through the Internet to a post office box address, nor have them collected by a courier organised by the purchaser. Only send goods to a home or business address and have them delivered to a person inside the premises.
- With orders taken over the telephone, Internet or by mail, check the telephone number against the name in the telephone book. Then wait for a short period and call the contact number provided and ask for the caller. Confirm order details and record the date and time you spoke with the person.
- In a face-to-face transaction, always cross check the signature and do not return the card to the purchaser before the sale is processed and signature confirmed.
- Be wary of customers who try to rush a sale, look nervous or agitated, or sign a card slowly and unnaturally.
- Check the card itself. If any alterations or irregularities appear on a card ask for additional photo identification or hold the card and call for authorisation.
- Ensure card receipts and carbon copies are destroyed.
- Retain transaction and/or terminal receipts for six months. If you cannot provide these to your bank upon request, a transaction may be charged back to you.
- With new team members, look for changes in behaviour and other signs, such as gambling. Separate employees’ duties and implement job rotation where possible.
HR Tips - Motivation
- The quality and style of your leadership will be key to the motivation levels of your team members and to the success of any action you take to enhance their motivation.
- Some factors are likely to have a positive affect on motivation, whilst others tend only to have a negative impact. For example, being paid a 'fair' wage is not likely to highly motivate a team member, but the perception of being paid unfairly can be very demotivating.
- Motivating your team members is not always the answer to improving your business performance. Their motivation is only one factor affecting performance, so be realistic about your aims.
- Your arrival in the office and the first moments you spend with team members each day have an immeasurable impact on their motivation and morale, so start the day right. Share the goals and expectations for the day. Let your team know that today is going to be a great day - you can make their day.
Regular Pieces
How to Make the Most of Your Newsletter
Be sure to read each article with the mindset “How could this apply to our business.” Thinking of it that way will guarantee that you get value. Better yet, take notes as you read and commit to having the ideas implemented by the time the next edition arrives. Also, make copies for each team member. To really make sure something positive happens, work with
one of the GNS GROUP business development specialists to talk your team through the ideas and how to set a schedule for getting them implemented. We’re here to help you get started.
Memorable Quotation
“Out of clutter, find Simplicity.
From discord, find Harmony.
In the middle of difficulty lies Opportunity.”
– Albert Einstein
An Important Message
While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.
Terms of Use
All rights to the content in this publication are reserved by RAN ONE Inc. Any use of the content outside of this format must acknowledge RAN ONE Inc. as the original source.
© 2002 RAN ONE Inc
The Importance Of Good Communication Skills In Business