The Advantages of Transparency and Communication with all Company Stakeholders

By: Paul E. Roberts, Principal – Roberts Statistical & Consulting Services, Los Angeles

In business, communication and interaction are part and parcel of everything we do. The products and services companies supply the needs that customers demand.

None of this occurs in a vacuum.

Making sure everyone is on the same pages, both internally and externally means that the process of doing business can be smooth and provide the opportunity for mutual growth and profitability.

When all internal stakeholders know what is expected of them, they can execute their necessary tasks and provide expected value to their processes and procedures. Having all the information they need from the departments they interact with; they can clearly and efficiently do their part to make the transaction successful. Everyone working in concert, empowered with the information they need, minimizes the dissonance, and brings customers back for more.

Siloes are the Enemy:

Thoughts like “we’ve done it this way for years and this is how we do it” create a myopic view of your operation and prevents the possibility of creating better task functionality, thus hindering communication.

Keeping information proprietary to its department creates data siloes. These “pillars” of information may seem like they benefit that specific part of the organization, but when it has been determined within a department the data does not need to be shared or is done so only on a “need to know” basis, problems will occur.

Making decisions without information that is in a silo can lead to decision making without vital information:

·???????Decisions to access in territories to gain market share without all pertinent information

·???????Investing in inventory for select proprietary customers that unnecessarily ties up cash flow

·???????Adding and/or modifying software and IT infrastructure limiting the dynamic and robust reporting needed for effective decisions

·???????Limiting or combining jobs in logistics and warehousing that hinder operational efficiency based on the data at hand

By keeping information in siloes, businesses with segregated and departmental proprietary data go to market without getting the full picture of their opportunities, risks, and rewards. It’s like trying to fix something with your dominant hand tied behind your back.

Creating a Culture of Transparency:

Businesses have a myriad of departments: finance, IT, procurement, warehousing, logistics, marketing, sales, administration to name a few. Each have their own responsibilities and interact with each other to ensure the successful completion of transactions and projects. It’s important that each department gets the information they need when they need it and in the form that they require it, so they can complete their part effectively.

At times, there is a tendency in business to keep what is considered ‘proprietary information’ confidential, or at least, close to the vest. While that always has its place in business, when that occurs inside business operations, it will often start the creation of siloes; places where data, information, processes, and procedures are known only to those in that department or with “need to know”. As siloes grow, they become harder to topple.

Where does the elimination of siloes start? It starts at the top of the organization. It doesn’t matter if the company is a start-up looking for new markets or is a legacy company with a well-established presence in their territory. Creating an organizational atmosphere of transparency and communication begins with business leadership having a mindset where they want all internal stakeholders to be “in the know”.

When companies minimize secrets within the organization (necessarily confidential information notwithstanding, of course), they allow all departments to do their jobs efficiently and effectively.

When company leadership establishes that everyone who needs to be in the know gets the necessary information, it makes it much easier for department heads to follow suit. Keeping everyone that needs to know aware lets others not only do their job but also to go the extra mile when they need to.

A Vital Part of Creating a Culture of Transparency – Listening:

As they say, “actions speak louder than words”.

When creating an organization that communicates well and limits siloes, it is important to know what other departments need to get the job done. To work together, departments within companies need to listen to each other’s needs before acting on the information they have.

For instance, it may not be in the best interest of the organization to engage in sales to customers that are in arrears. Ensuring that the sales team has all of the necessary and timely data from accounts receivable helps to make that a mutual decision. On the flip side, surprise volume orders from sales can put the procurement department into a “putting out a fire” mode, leading to other necessary decisions being delayed or, at times, missed. If the sales team is aware of pertinent inventory numbers, then those issues can for the most part be easily avoided.

Good communication means sales is in active conversation with finance about customer credit lines and payment habits, while giving procurement a “heads up” when special order quantities may be needed. Creating the atmosphere of transparency through effective communication – listening to the needs of others and working together to achieve common goals.

What it Takes to Prevent/Eliminate Siloes:

Once leadership has created the environment for transparent communication, the work needs to continue to ensure that the culture continues to thrive. Accountability is paramount.

You never know where the next best idea and/or best practices will come from. It can come through the administration where they have learned new ideas and techniques from meeting with like organizations in other parts of the country (like through industry association and buying groups!) or it can come from a new hire who is just learning what to do and how to do it within your organization, but is also bringing with them years of past experience from their prior company.

Wherever new thoughts, processes, policies, and procedures are presented, what is important to remember is that everyone has an opportunity to see the positives and negatives that new ideas bring in and how they can improve business operations.

Documenting Policies & Procedures:

When everyone knows their roles, the process of day-to-day operations are smooth and efficient. Know what is expected of everyone in the process. Once mutually agreed upon policies and procedures are established, it’s always a good idea to document them so that all stakeholders know what, when, and how to do what’s necessary. Documented business operations create additional transparency and expected communication parameters. As business grows, changes, and pivots, these documented policies and procedures can be changed and adapted. It is, after all, a living document!

Does your company need a Strategic Business Plan? RobertsSCS is here to work with you to bring your business processes into focus. Call us today at (310) 972-8243 or reach out to us at [email protected]

Quantifiable Results of Transparency and Good Communication:

With clear avenues of communication within your organization are in place, it becomes easy to quantify how things are going. For example:

·???????Sales growth and profitability can be easily monitored with the help of finance and procurement.

·???????Data from customers and vendors are relayed to sales and marketing to determine trends like lost sales, new opportunities, and gaps in product offerings.

·???????Warehousing and Logistics are in tune with procurement and sales ensuring that high moving items are available promptly and special orders are handled appropriately.

·???????IT works with Marketing & Sales to advertise a promote products and services through all company connected social media platforms, website, and email campaigns.

Creating and documenting reports and analysis allow your business to take advantage of market opportunities and establish new markets for existing and new products and services.

There is incredible value for businesses when they have clear and transparent communication internally. It allows everyone in the organization to not only do their part but also aid others in the mutual success of any project and transaction. On a personal level, with everyone working together, the additional feeling of satisfaction when the task is completed permeates throughout the organization and makes others want to join the fray! Working together to achieve company goals creates dividends for all stakeholders, both individually and collectively.

Does your company need a business plan? Is your existing business plan due for a refresh? Has your company lost focus and you are looking to re-energize it? RobertsSCS is here to work with you to bring your business processes into focus. Call us today at (310) 972-8243 or reach out to us at [email protected]

About RobertsSCS:

Roberts Statistical & Consulting Services ─ RobertsSCS ─ offers results-oriented strategies, mentoring, and insights to optimize operations for legacy companies looking for 21st Century upgrades to improve profitability, increase sales growth, and future-proof systems for sustainability.

Using 30-plus years of operating and management experience, RobertsSCS works with businesses with $1-30 million in revenue to create better efficiency, synergy, and outreach.?We provide developmental, strategic, and executable plans of action at multiple levels: wholesale, retail, B2B, and B2C for organizations desiring to maximize industry market share.

Knowing the market environment and the status of each business we work with allows us to provide customized insights on growth and profit opportunities at the local, regional, and/or national market level.