Open communication throughout the chain of command can mean the difference between success and failure in the business world. Companies flounder not because CEOs and business owners don’t know what they’re doing, but because they don’t know how to communicate their business skills and acumen to the managers who run the day-to-day operations of the company.
The two most important concepts to successfully grow a business are increased revenues and reduced costs. Business owners may have a well-developed strategy to increase revenues and reduce costs, but these strategies may never be implemented if they aren’t clearly communicated to the management team. If your company is struggling to grow or even maintain profits, here are a few questions for everyone in the company—CEOs, business owners, managers, and employees—to consider.
- Are your managers and employees aware of the ‘bottom line’ of your company? (Note – educating EVERYONE on how they impact the bottom line isn’t about giving up control, it’s about shoring up your company’s ability to survive the downturn without damaging the most valuable asset you have – your people.)
- Are there managerial practices in place to ensure costs are kept to a minimum?
- Are managers and employees aware of the core values of the company and are they operating according to these values?
- Are telecommunications and equipment expenses as cost-effective as possible?
- Are you getting the best bank fees and rates possible? Is this something that could possibly be renegotiated with your bank?
- What procedures do you have in place to regularly manage contract negotiations with suppliers and contractors?
- Are you aware of your company’s ‘bottom line’?
- Have the reasons behind your company’s profit improving and cost reduction policies been communicated to you?
- Do you conduct business according to the values of your company? What are those values?
Both good times and tough times require that you set up your company to function well like a well-oiled machine.
Making sure that everyone in your company is working toward the same goals is the best way to ensure that your business stays on the right track. Open communication between CEOs, management and employees will help increase your revenues and decrease your costs at every level of the company.
To gain more insight about these business growth principles, please click here to register for a complimentary ticket to be our guest at our Executive Briefing “Are You Prepared for the Turnaround” in Calgary on October 13, 2016 at the Petroleum Club.
For more educational information and helpful workplace training programs, contact us today at ACT One International.
Written by Murray Janewski