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Effective Communication Key to Small Business Success

Published: September, 2005


Effective Communication Key to Small Business Success

Kerri Halmi


Businesswomen spend at least 75 percent of their time communicating, yet studies show that business communication fails to achieve its intended purpose more than two-thirds of the time. If a product had these statistics, nobody would buy it. Still, while we may understand how important communication is, few realize how difficult it is to execute properly, or appreciate the damage of not doing it correctly.


Further impeding the ability to improve communication is the fact that most people feel that communication problems are a product of others' weaknesses. One study revealed that 93 percent of leaders think they're effective communicators, while only 11 percent of their employees agree. Focusing on improving communication skills will make your business more successful.

A University of Michigan survey found that over a five-year period, companies with higher scores on information sharing had higher returns on investment and higher returns on sales than companies with low scores.

The following tips will help improve your communication.

Listen effectively.

Effective listening is a crucial leadership skill. It affects how well you interact with customers, influence others, and solve problems. Listening is an easy concept to grasp, but a difficult skill to master. Even careful listeners who focus on the conversation often think about what they will say next, as opposed to really focusing on what the other person is saying.

Understand different styles of communication.

There is a straightforward assessment tool called "What's My Communication Style?" available through HRDQ (www.hrdq.com). It highlights four basic styles, with the main differentiating factors being assertiveness and expressiveness. People with different styles can communicate the same message in very different ways, possibly resulting in conflict or failure of communication. Communication and work relationships can dramatically improve when people understand the different styles and how the styles can result in miscommunications. The styles are:

  • The Direct style (high assertiveness and low expressiveness), characterized by a decisive tone and an emphasis on the bottom line.


  • The Spirited style (high assertiveness and high expressiveness), which has an animated style and can be very persuasive.


  • The Systematic style (low assertiveness and low expressiveness), characterized by a precise speaking style with an emphasis on facts.


  • The Considerate style (low assertiveness and high expressiveness), which features people who listen well and use supportive language.


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