Communicating Effectively

Top Tips On Communicating Effectively

Effective Communication Strategies | Communicating Effectively

Hello and welcome to the first in our two (2) part article series on Effective Communication Strategies. Without any further ado lets get started.


The whole purpose of communication is to lead to better understanding between two or more parties. A conversation or presentation that those not result in understanding is unproductive. This in turn leads to even more misunderstanding, resentment, and dissonance.

There are many barriers to effective communication, and these barriers must be bridged in order to reach understanding. Some of these barriers involve lack of proper preparation, failure to see the need to communicate clearly, complacency in delivery of the message, lack of empathy toward one or both parties, prejudice, feeling of superiority, and impatience.

Effective communication includes both skills and attitudes. Skills include: proper articulation, eye contact, listening, paraphrasing. Attitudes encompass: empathy, rapport, and basic respect for the other person.

When communication problems arise, there often is a disturbing tendency to blame the other party instead of focusing on our own responsibility to establish the necessary criteria for understanding.


List of Communication Strategies | Communicating Effectively
Effective Communication Strategies
People Management for Small Business


There is a strong connection between successful communication and respectful cooperation. When there is mutual respect, guidelines and techniques for communication are less important because the parties will have a strong desire to create mutual understanding. But, when this is lacking, even a command off the best techniques of communication will not help bring about understanding. This is not to say that techniques are not necessary. It is important to master them, but at the same time to remember that creating a cooperative and open environment is essential.

Effective communication is as much the result of a positive attitude to communication as it is of methods and techniques. Communication effectiveness is dependent on three main factors that can be broken down as follows:

a. Seven percent (7%) depends on the words we use.

b. Thirty-eight percent (38%) depends on our tone of voice.

c. A fully fifty-five percent (55%) depends on non-verbal body language and physical gestures.

The surprising realization for most people when looking at the three factors of effective communication is the predominance of body language. We often spend most of our time on the text of our presentation and totally forget about assuring that our tone and body gestures have the desired effect on the listeners.

Voice modulation is an important part of the delivery. There is nothing less attention destroying than a presentation delivered in an awkward monotone. You do not want to put an audience of one or more individuals to sleep. Raise and lower your voice to suit the contents of the text.
This is not difficult to do, just pick out the passages that you really want the listeners to fully grasp and both slow down and raise the volume slightly.
This is true if you are speaking to a larger audience at a company meeting or to just one subordinate.

Understanding the enormous consequences of body language should be a huge motivation to improve this element of communication. Standing or sitting in a straight but not rigid position, making confident but not overbearing eye-contact, preventing yourself from showing the outward signs of discomfort such as sweating or fidgeting, can be readily mastered.
Become aware of your own body language traits and work on correcting them by practicing in front of a mirror or a friend who can provide immediate feedback.


Effective Communication Strategies | List of Communication Strategies

Communicating Effectively

Business Restructuring and Reorganization

The skills part of effective communications can be broken down into five basic factors. The more you understand and practice these techniques, the more skilled you become.

However, you also must be always aware of the emotional backdrop and make certain that it is advantageous to the communication process. Your personal approach should be positive and seek the best possible outcome for both parties, as well as the organization.

Effective Communication Strategies Communicating Effectively

Join us next in part two (2) of this two (2) part article series as we discuss more on The Five Key Factors In Communications



Business Management Skills Blog | Creating A Climate For Change Within The Organization

Methods of Managing Change In An Organization

Creating a Climate For Change Within The Organization

Creating A Climate For Change Within The Organization | Methods of Managing Change In An Organization



Some of the principal reasons why people resist change include the following fear factors:

  • Financial loss.
  • The unknown.
  • Loss of status.
  • Implied criticism.
  • Bad past experience.
  • mismatch of skills.

We are living in a new millennium of unprecedented change. Because of increased competition, more demanding customers, and reduced brand loyalty. Change is more destructive. So volatile is the period in which we live that many top executives claim that the only constant today is change.

Many businesses fail because its managers don’t know what to do to keep pace in this dynamic economy. It is no longer uncommon to read of well-known, once successful companies being absorbed by more progressive firms. Others have been greatly diminished because the need for its products or services have disappeared or are offered more effectively and at a better price by a competitor from emerging market countries like China.


Change Management Strategy | Methods of Managing Change In An Organization

Creating a Climate For Change Within The Organization

People Management for Small Business

The need for change, stimulated by both domestic and international competition, is easily recognized. New materials, global competition, and new technologies like 3D printing have made serious inroads into markets that a company may have once dominated. A world wide emphasis on research and development and frugal engineering will translate into more intensified competition for the consumer’s pocket book.

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Today’s managers live in a world where nothing is as certain as change. Therefore, managers who are not skillful in dealing with, and implementing change will find themselves left behind and unable to effectively reach their profit objectives. Companies with managers who say, “Well, that is just the way we have always done it”  will inevitably sink into organizational and financial stagnation.



 How people react to proposed changes is greatly influenced by the kind of climate for change that is created. It begins by building the enthusiasm for progress and change. Dynamic, successful organizations are constantly seeking and introducing new methods, new equipment, new technologies, new standards, and new internal organizational structures. Managers, within these progressive companies embrace these changes,  provide enthusiastic support, and project this enthusiasm to their subordinates.

Creating the right climate for change involves encouraging employees to seek ways of constantly improving efficiency and suggesting specific improvements in their departments. Employees can quickly lose interest in becoming catalysts for change when their ideas are ignored or ridiculed. Seeking suggestions and ideas from employees at every level of the organization requires that managers listen and evaluate all serious feedback.


It is always easier to carry out any restructuring if there is a concise plan to follow. Whenever major changes are to be implemented, careful planning and preparation that involve all departments are necessary for success.  There are six steps that are helpful in launching major changes.

Sell the change:  many times the job of a manager is one of selling new ideas, and improvements to employees. Much of the difficulty encountered in getting cooperation stems from the employee’s lack of understanding of how the change will affect them. Take the trouble to put together a power point or video presentation that focuses on the positive outcomes of change for all concerned. Selling with this kind of upbeat visual backup will provide a boost to morale and improve acceptance for change by the majority.

Get Help:  Specialized staff can frequently be of great help in preparing to sell a change by explaining technical aspects and demonstrating new techniques. Seek them out within the organization first but also use outsiders when necessary

Another source of help in introducing changes are the informal leaders in the work force. These are employees with no official job title but whom other employees respect. Giving recognition to this type of leader puts him/her in a cooperative frame of mind and on management’s side.

Anticipate  Objections: Changes that upset routine, require new knowledge or skills are bound to meet with some objection or resistance. Looking at change from the employee’s point of view will help determine what their objections are likely to be. Listing these objections, a manager, with a little creative foresight, can turn these objections into opportunities to enlighten.

It really does not matter how much authority a manager may have. He/She must recognize that they cannot force people to accept their way of thinking. Cooperation, not just grudging compliance, comes about if you can show the win-win possibilities of any change. People are going to have to be made to feel that the change is really best for them, and that will not happen until their objections are seriously dealt with.

Accentuate the Positive: Everyone wants to know, “What’s in it for me?”. In order to motivate people and gain their support for change an effort must be made to personalize the beneficial effect it will have on each individual employee. It would be counterproductive, however, not to recognize any disadvantages that a change might bring. Sometimes change that is good for the overall company might not be good for a certain individual. Explain this carefully and try to show them that change will help the company to grow and present greater opportunities for all employees in the future.

Listen Carefully: Employees have a right to be heard. Their questions may be their way of demonstrating interest in their jobs or a means of making suggestions that would facilitate the change. If employees are treated with respect, as important members of the team, he/she will in all likelihood reciprocate  this respect.

Follow Up:  When purchase something in a retail outlet or on line, it is easy to resent the salesman or service support who loses interest in us just as soon as the sale is finalized. After having conscientiously sold the benefits of change to provide better after sales conduct, it is important to measure that the changes have been implemented at all levels of the organization. A sincere interest in how the change affected the employee and a willingness to make adjustments will help to build the environment in which future changes will be accepted more readily.


Change Management Strategy | Methods of Managing Change In An Organization

Methods of Managing Change In An Organization
Managing People Effectively



We are in an era of unprecedented change. The attitude of the company’s human resources is the key to how effectively change is implemented. People do resist change for some of the reason listed above, but it is just as natural to cooperate as it is to resist. In many instances the difference between the two depends on whether or not the employees are completely involved in the implementation of the change and understand the overall benefit.

The ability to develop mental flexibility, and to meet new challenges with creative solutions must become part of the company’s credo if it wishes to thrive. Developing an environment where employees embrace the change is the key to creating a better future for all.



Business Management Skills Blog | Tips on Restructuring a Business

Best Financial Ratios For Small Business

Performance Ratios For Small Businesses

Performance Ratios For Small Businesses | Best Financial Ratios For Small Business

Welcome back to our part three (3) and final part in this three-part article series on the Use of Financial Ratios For Small Businesses. You can go back to part one (1) here and Part two (2) here.

Total Debt To Net Worth: Total Liabilities ÷ Net Worth

This ratio expresses the relationship between capital contributed by creditors and that contributed by owners. It expresses the degree of protection provided by the stockholders for the creditors.

The higher the ratio, the greater the risk of being assumed by creditors.  A lower ratio generally indicates greater long-term financial safety.
The effect of long-term (funded) debt on a business can be determined by comparing this ratio with the Current Liabilities to Net Worth Ratio. The difference will pinpoint the relative size of long-term debt, which can burden a firm with substantial interest charges.

Total liabilities shouldn’t exceed net worth (100 percent) since in such cases creditors have more at stake than stockholders.


Most Important Financial Ratios For Small Business | Best Financial Ratios For Small Business


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Operating Ratios

Operating ratios are used to assist in the evaluation of management performance. These consist of the following key ratios:

Percent Profits Before Taxes ÷ Tangible Net Worth

This ratio expresses the rate of return on tangible capital employed.  While it can serve as an indicator of management performance, it should be used together with other ratios.

A high return, normally associated with effective management, could suggest an undercapitalized firm.  Conversely, a low return, usually an indicator of inefficient management performance, could reflect a highly capitalized, conservatively operated business. Profits before taxes may be zero, in which case the ratio is zero.
% Profit Before Taxes ÷ Total Assets

This ratio expresses the pretax return on total assets, and measures the effectiveness of management in employing the resources available to it. It is also called the rate of return on investment, and it shows how efficiently a firm manages resources.

It is different from the Return On Equity more money is available for dividends and/or reinvestment in the firm. This ratio can be used to compare the performance of investment in a company compared with other investment opportunities.

If this ratio varies considerably from the industry average, a detailed examination of the composition of the assets and a closer look at the earnings figure is warranted.

A heavily depreciated facility and a large amount of intangible assets or unusual income or expense will cause distortions of this ratio.

Total Assets Turnover:  Net Sales ÷ Total Assets
This ratio is used to measure the sales generated by each dollar of assets. A high asset turnover is preferred. A low turnover could mean that the firm requires more assets than a firm with a high asset turnover or that the firm is not using its assets in an efficient manner.

If the ratio is less than the Industry Average, this means the company is simply not generating a sufficient volume of business for the size of the asset investment.

Sales should be increased, or some assets should be disposed of, or both steps should be taken.


Most Important Financial Ratios For Small Business | Best Financial Ratios For Small Business
Best Financial Ratios For Small Business
Small Business Financial Controls



These are the key ratios that a small business or any business, for that matter, should keep a close track of and fully understand the implications.

It is important to compare yourself to your industry.  It is even more important to monitor your own progress.  Improvements in indicators – even an improvement of a tenth of a percent will show management what strategies are working and how to capitalize on their strengths and minimize their weaknesses.



Business Management Skills Blog | Business Management Ratios For Small Businesses