We communicate every day with family, friends, employees, customers, and suppliers, yet don’t always think about how we communicate and how our communication style affects conversations, decisions and outcomes. This article provides you with ways you can improve the quality and efficiency of your communication. Where a family business is concerned, this can lead to improved outcomes and enhance relationships.
Communication
Everyone has their own communication style that they develop over time based on their environment and experience.
Active listening is a skill that is often overlooked, but it is the key to effective communication. Without active listening, the ability to receive accurate information is compromised and can impact the listener’s interpretation and response. If you only focus on enhancing one area of communications, it should be active listening.
Communications come in different forms including written, phone calls, video calls and face-to-face, and each has their own nuances. For example, face-to-face communication involves verbal and non-verbal cues that are less relevant on phone calls. On phone calls, we need to think about how we communicate as well. Are we actively listening or thinking about what you want to say next? Are we focused on the conversation or distracted and multi-tasking? All of these things can impact the quality of the conversation and the impact of the message that is delivered.
If you are looking to improve the effectiveness of your communication, you should solicit feedback and ask yourself the following questions?
-
What are my communication strengths and weaknesses?
-
What changes can I make to improve the quality and effectiveness of my communications?
-
How is my body language?
-
How does my communication style and presence change when I speak with family members, employees, or clients?
Decision making
Every day, you make decisions. What you eat for breakfast and what time you should go bed, are decisions that do not require much thought because the outcomes are inconsequential. For larger decisions, it is important to consider your decision-making process in order to enhance the outcomes. How do you make the big decisions in your business and family? Do you seek input from others or rely on yourself as the sole decision maker?
There are several decision-making styles you can use depending on the type of decision required. This chart outlines a few different decision-making styles:
|
Participatory Management
|
|
Leader Decides
|
Followers Decide
|
|
Autocratic
|
Consultative
|
Group Decides
|
Delegation
|
|
Decide and tell
|
Decide after consultation and/or recommendation
|
Followers share in decision
|
Delegate to others
|
|
Style #1: Autocratic
|
Style #2: Consult
|
Style #4: Majority
|
Style #6: Delegation
|
|
|
Style #3: Recommend
|
Style #5: Consensus
|
|
Source: www.primarygoals.org
Consensus decision making can be very effective in situations that require building and maintaining team unity, giving people a voice in the decision, and collaboration. One drawback is that it can take longer to reach a decision. We recommend you follow these three principles:
1. Input from everyone is valued;
2. The decision is not to be made at the outset; and
3. Everyone is given access to the same information.
In group decision making, it is important to be flexible and open to other viewpoints and ideas. While you may not agree with a decision or outcome, there can be various degrees of support for a solution (i.e., you do not like the solution but will support it). Consensus is intended to create alignment of your team in the decision-making process which does not mean that everyone fully agrees on the path forward. The process of decision making can be more important than the decision itself when you consider the impact on those involved. Giving a voice to leaders on your team to express their viewpoints and beliefs is critical.
Communication and decision making in family and business
Governance is defined as communication and decision making, but this does not address the ”effectiveness” of communication and decision making. Governance exists in every business regardless of its formality. Adding formality into your communication and decision-making process will help to improve outcomes.
When communicating and making decisions, consider the following questions:
-
What decision is required? Is it a family or business decision, or both?
-
Who should be involved in the discussion (management, shareholders, family in the business, all family, etc.)?
-
Where should the discussion take place? Dinner table or board room table or somewhere else?
-
When speaking to the frequency of meetings, consider:
-
Are you meeting frequently enough? Setting aside time to have business discussions on a regular basis is important. This could be weekly, monthly, quarterly or annually.
-
Are you scheduling important discussions at the right time (i.e., morning when people are fresh or end of day when people are tired)?
-
Why is the decision at hand important? Does everyone have the same base level understanding and access to information?
-
How are you going to communicate and make decisions?
-
Do you need a formal agenda?
-
Are roles clearly established? (is there a meeting chair, secretary? etc.).
-
Is there a code of conduct in place for meetings? What policies should be in place?
-
Decision making through consensus or another style (see chart on page 1).
One of the biggest risks to family harmony or the vitality of a business is lack of communication. When people don’t speak up out of fear of reprimand or not believing people will listen, issues may arise and opportunities may be missed. It is important to create a safe environment where everyone feels they can communicate openly and honestly.
Seek professional advice
A BMO Business Advisory and Transition Planning Specialist can be a trusted resource in helping to navigate critical and difficult conversations as they relate to your business and family.
For more information, speak with your BMO financial professional.
BMO Private Wealth provides this publication for informational purposes only and it is not and should not be construed as professional advice to any individual. The information contained in this publication is based on material believed to be reliable at the time of publication, but BMO Private Wealth cannot guarantee the information is accurate or complete. Individuals should contact their BMO representative for professional advice regarding their personal circumstances and/or financial position. The comments included in this publication are not intended to be a definitive analysis of tax applicability or trust and estates law. The comments are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.
BMO Private Wealth is a brand name for a business group consisting of Bank of Montreal and certain of its affiliates in providing private wealth management products and services. Not all products and services are offered by all legal entities within BMO Private Wealth. Banking services are offered through Bank of Montreal. Investment management, wealth planning, tax planning, philanthropy planning services are offered through BMO Nesbitt Burns Inc. and BMO Private Investment Counsel Inc. If you are already a client of BMO Nesbitt Burns Inc., please contact your Investment Advisor for more information. Estate, trust, and custodial services are offered through BMO Trust Company. BMO Private Wealth legal entities do not offer tax advice. BMO Trust Company and BMO Bank of Montreal are Members of CDIC.
® Registered trademark of Bank of Montreal, used under license.
All rights are reserved. No part of this publication may be reproduced in any form, or referred to in any other publication, without the express written permission of BMO Private Wealth.
