Communication holds key to positive revenue trends

Updated: May 9 2005, 05:30am hrs
Communications assigns purpose to corporate structure. One of the key pedestals a corporate stands on is a very systematic, well defined, smooth internal and external flow of communications. Not only that, it should traverse right from the reception to the CEOs office and from the inventory to the HR.

Communications is the deciding factor that ensures transparency, motivation, day-to-day smooth functioning, corporate values, market understanding, corporate and individual growth which all finally lead to positive revenue trends.

It is about people who actually form the only capital asset of the organisation. With revenues and corporate image increasingly going hand-in-hand, communications will go a long way in setting the house in order.

Irrespective of the nature of business you are in, whether a consultancy or manufacturer, small-scale local enterprise or multi-national giant, perception and revenues have a direct & tangible correlation. However, the point to underline here is the people who establish this correlation. People assume different roles and communication circuits within the corporate externally & internally-and its growth cycle.

People can mean consumers of products and services; those who create and constitute a corporate; those who create perceptions and also get affected by forming one. Peoples attitudes and behaviours are the cause and effect of communications.

Each employee, whether a receptionist or a CEO, has to be convinced about two expressionsMy corporate needs to exist in the market and which is why I form an integral part of the corporate I work for. Communications should be able to create a purpose. Communications is essential for HR, marketing, production and finance functions to survive.

Let us establish how communications affects various aspects of the corporate.

Mission statement

One of the most critical yet often ignored areas. Corporates ought to develop their mission statement early. It is a different story though that many do it only when crisis knocks on the door. Communications plays a vital role in deciding and fine tuning the mission statement. Mission statement sets the tone of the corporate, establishes its character, defines the parameter of its activities and very importantly, helps differentiate between competitions. Communications plays a role of a guide and also implements it by spreading the word around. This is one of those critical parameters that ensure the corporate needs to exist.

Lets look at the cause and effect components of communications in three crucial functionshuman resources, marketing and revenues.

a) Human Resource: Attracting new talent, assigning the right roles , dealing with office perceptions, sustaining motivation levels , appraisals, lay offs, etc. are all guided and effected by internal communications or the lack of it.

b) Marketing: Whether dealing in goods or services, communications is the only enabler in this delivery cycle.

c) Revenues: A healthy communications should ensure the finance divisions get a feel of the company, and the reasons for each initiative.

The writer is associate director, TAM Media Research