A culture of open and effective communication thrives inside a company when a clear communication strategy is exercised by top management through efficient communication tools.
The Holmes Report, which surveyed 400 companies in the US and UK, showed that companies with ineffective internal communication structures suffered total losses of $37 billion for the year due to misunderstandings between employee. This included actions or errors of omission by employees who were misinformed about company policies, business process, or job functions. But the report also highlighted the positive effects of open communication. Companies with leaders who effectively communicated to their employees produced a 47% higher return to shareholders over a five-year period, compared to those who neglected communication.