Enhancing Internal Communication Flow within Small and Medium Enterprises (SMEs)

The term ‘communication’ is derived from the Latin word (Communis) which means “to share.” Communication is a relational process in which two or more parties exchange information, understand and influence each other; it is indispensable to the optimal performance of every organization. Theorists also argue that communication ‘is the organization.’ Communication involves the transmission, receipt, processing, and use of information. Effective communication involves expressing the content and intention of the transmitter to the receiver. However, if a common understanding is not reached through the transmission of symbols (verbal or non-verbal), there is no communication. Effective communication is imperative to organizational goal achievement.

In Kenya, SMEs can have 10 or fewer workers and small enterprises have from 11 to 50 workers. All organizations whether big or small require people to undertake various activities in them to prosper and grow. Surviving and thriving in the long term involves getting the right people focused on the right things and engaged in a collective effort. The importance of effective communication in an organization cannot be overemphasized in both strategy formulation and eventually implementation and monitoring organizational performance.

Furthermore, implementation effectiveness is negatively affected by lack of communication. Execution is carried out by different people at different levels in the organization. Most managers struggle to communicate strategic plans to employees who did not participate in formulating them, yet are expected to implement the plan. In smaller organizations communication structures are not as complex however, regardless of size, if members of an organization are not aware of the same information there will be challenges at the implementation stage.

Additionally, the quality of communication practices is likely to be associated with role clarity and job satisfaction. Effective communication is critical for the development and maintenance of positive working relationships. Trust is the currency of the modern era. Communication is crucial to trust building between the parties collaborating to implement a strategy. Organizations need to develop mechanisms that send formal and informal messages about a new strategy. Delays in communication can derail coordination and have a negative impact on the business and relationships.

Communication in African SMEs can be mostly top down, with the owner manager running the show. In African culture, those in authority are not typically questioned as mark of respect and what they say is final. This breeds an environment where people do not feel comfortable expressing themselves which can introduce barriers to communication flow.

Internal Communication Flow

If there is no formal structure for how internal communication is conducted, it creates space, and this space can be filled with misunderstandings. Those misunderstandings slow down business processes and create frustration. Inadequate internal corporate communication can lead to issues with confidence, confusion, and disengagement among employees. As the employees find the structure of communication hard to grasp, they will fill in the blanks for themselves which can derail strategy implementation.

For internal communication in an organization to be considered effective it should be aligned with the company’s vision, objectives, and goals. SMEs can sometimes operate informally especially if they are recently established. However, drafting a communication strategy that encompasses both internal and external communication strategies is a key pillar for growth. This strategy should be a ‘living’ document that grows with the company. The larger a company becomes, the greater the complexity of the communication structures within the company. However, by defining communication pathways and incorporating best practices at the outset, you can position your company for success in the long-term.

Internal communication can be distinguished in three key areas. These are;

• Downward communication – information from managers to employees
• Upward communication – Information from employees to managers
• Horizontal communication – information between employees

Channel Strategy

An SME can select several channels to use for internal communication. Successful internal communication can be facilitated by using the right channels and using a diversity of channels. Involving your employees in the selection of channels and listening to their feedback and opinions can help with this process. Identify the communication objectives first and then match the right channel to each objective.

Channel richness is the amount of information that can be transmitted during a communication episode. The richness is based on three different factors. The ability to handle multiple questions simultaneously, the ability for rapid two-way feedback, and the ability to create a personal focus in the communication. Face-to-face communication has the most channel richness followed by phone calls. However, in the digital era, electronic communication like video-conferencing can also be efficient and effective. Email communication is quick but can have a negative effect if that is the only means of communication as it lacks emotional cues. Memos, letters and formal reports also lack these cues and can leave lingering unspoken issues.  By spreading the communication over multiple channels the information is more likely to reach and be understood correctly and effectively by the recipient. For example, if the information in an email is not adequate for full understanding, this can be complemented with a face-to-face meeting.

Investing in Communications Solutions

There are many intranet portals or digital workplace solutions on the market. Investing in an internal communications solution can also help employees work together more efficiently. The rise of hybrid working also necessitates building an inclusive corporate culture. There are many tailored solutions available for companies to improve their internal communications. Relying on email alone is not sufficient. With hybrid work, effective communication is not only about information strictly related to business, it is also a question of engaging all employees. They need to feel a sense of belonging to the company that is reflected in its culture and values.

Newsletters and Staff Forums

Creating staff newsletters to share company news and celebrate employees’ successes can be a good tool to enhance communication. However, it is important to complement that with face-to-face meetings and gatherings that allow feedback and group reflections to take place. Even if your staff work in a hybrid environment, strive to bring all your employees together on a regular basis to engage and connect.

Set the Rules of Engagement

Rules of engagement set expectations about how your team will work together to achieve their collective objectives as well as how they will work individually. These rules will build trust, commitment, consistency, accountability and improve conflict resolution. Operational rules such as attendance expectations, work distribution, shared decision-making, and deadline adherence should also be clarified.

Unspoken assumptions will breed confusion, especially when everyone has a different interpretation of expectations and work output will suffer as people try to fill in the blanks for themselves. Established rules of engagement will create a common understanding, clarify desired behaviors, and define work contributions.

Diagnose Communication Issues

Only open and effective communication leads to prevention and detection of the sources of these issues, to problem definition and its subsequent solution. When employees work results or their work behavior and attitudes are not in accordance with the company’s aims, there are typically three problem areas that need to be addressed:

1. Employees do not know what course of action to take due to the lack of information;
2. Employees cannot achieve the company’s goals because of their lack of skills or because the workplace conditions are inadequate;
3. Employees do not deliver because they are not motivated enough to achieve the work target.

Good internal communication is based on the principle that there is a need to treat employees as internal partners who work together to achieve the mission of the company. Having regular group forums and one-on-one chats with employees will help them feel appreciated and valued.  The people involved in the business are the most important asset for the company. Put people at the heart of your communications strategy for your business to thrive.

The Owner Manager Programme (OMP) is specifically designed for Chief Executive Officers and Managing Directors of their own companies and senior executives who are major equity stakeholders in medium-sized companies. This Programme has been designed to assist you to analyze and fine-tune your business, solve your own problems, identify, and overcome roadblocks, move your businesses forward and unlock your potential. Learn more about the Owner Manager Programme ici 

Article de Shailja Sharma, membre du corps enseignant et coach en leadership et carrière