Thursday, November 13, 2003

Communication no longer a "soft" function

Effective internal communication strongly impacts a company's ROI, says a new research report:


* A significant improvement in communication effectiveness is associated with a 29.5 percent increase in market value.
* Companies with the highest levels of effective communication experienced a 26 percent total return to shareholders from 1998 to 2002, compared to a –15 percent return experienced by firms that communicate least effectively.
* Organizations that communicate effectively were more likely to report employee turnover rates below or significantly below those of their industry peers.

Bottom line: Communication is no longer a "soft" function. It drives business performance and is a key contributor to organizational success.

Here's a summary of the report [via Phil's Place].


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