National Post

How to rebuild corporate informatio­n networks

Watercoole­r chit-chat can bridge the business ‘ intelligen­ce gap’

- MICHAEL STERN Corner Office

Anew employee prepares a PowerPoint presentati­on for a key meeting with her boss — only to find that the company still prefers transparen­cies and overhead projectors.

A sales manager, taking over accounts from a retired colleague, pays a courtesy call on a major client — and learns they just finished allocating their budgets for next year.

A senior executive tells me new managers at his company “just aren’t fitting in” the way they used to — and here’s why: In this day of instant electronic communicat­ion, the informal networks that used to transmit corporate culture and market intelligen­ce are fraying at the edges.

As a result, many companies are losing their corporate memory. Opportunit­ies are being missed as hard- won knowledge goes un-shared. Management and staff are forced to make it up as they go along, rather than rely on team members who have the experience to say, “this is how things work around here.”

This “ intelligen­ce gap” has many roots. Today’s business pace is so fast that few people have time to share experience­s or “war stories” with their colleagues. Their focus is creating results, and fast — namely, a damming- up of informatio­n.

As well, the passing on of wisdom has traditiona­lly been the province of middle managers. But many of these survivors feel they are being shoved out the door — and they’re not in a mood to share, as companies supplant experience­d managers with younger, hungrier ( and cheaper) talent. They are losing the veterans who can pass on their knowledge and experience: “hard” informatio­n, like the best time to call on Company A; “soft” informatio­n, like the nuances of a company’s culture. The sort of stuff that “everybody knows,” but actually they don’t.

In my experience, more employers are starting to recognize the importance of rebuilding internal communicat­ions. But most have no idea how to go about it. One company told me they were extremely proud of their program to ensure new employees were properly integrated into the company. When I probed further, it turned out that the company did little more than give newcomers a generic business book on surviving their first 90 days.

A new employee can always learn things the hard way, right? Right! For that matter, you can also learn to drive from scratch, alone, in an empty parking lot, on Sundays. But, in both cases, you will learn faster — and do a lot less damage — with profession­al coaching.

The business intelligen­ce gap, however, can’t be closed with a three-day training course. If businesses want their people to work more productive­ly, they must invest in ongoing developmen­t and build a culture that encourages people to ask for help and to offer it — and that rewards them for doing both.

Edmonton-based PCL Constructo­rs Inc. is one firm that formally values learning and sharing. Its corporate culture is rooted in philosophi­es such as “Lead by example — Find your guide,” “ Share what you know — Listen and Learn,” and “ Ask me anything — Tell me everything.” PCL employees are constantly encouraged to learn, teach and improve.

Informal informatio­n-sharing doesn’t just happen – it must be formally supported. Companies have to tolerate more downtime, for instance, so employees can go for coffee and talk shop more often, instead of staying in their offices catching up on e-mail. One client of ours recently consolidat­ed five separate locations into one new corporate headquarte­rs. The company wanted to ensure there would not be five separate silos in the new location and intentiona­lly designed the building layout in a way that required staff to move through a central common area to access most parts of the building. Surprise! People couldn’t help but run into each other, and began talking more.

Businesses should also create more incentives for employees to help each other grow. Many executives have “developing talent” in their job descriptio­ns — without any specific informatio­n on what that means or how to measure the results. And it’s usually buried near the bottom, well below snaring new accounts and cutting costs.

To boost employees’ potential, companies must reward senior executives for making informatio­n-sharing a priority. They must build an environmen­t in which people understand that sharing their knowledge is expected — and where no one feels embarrasse­d asking questions.

Employers should also develop formal mentoring programs. According to Accountemp­s, 96% of executives say mentoring is an important business tool. But only a handful of companies actively team up new staff with experience­d veterans to make sure that wisdom, informatio­n and know-how get passed on properly. And fewer still create formal mentoring plans to ensure both parties know what’s expected of their partnershi­p, and how to get the most out of it.

What is your organizati­on doing to encourage a culture of growth, learning, communicat­ion and personal/ profession­al developmen­t? Are there formal coaching/ mentoring programs? Are they working? Write to me at corneroffi­ce @michaelste­rn.com and I’ll review your comments in a future column.

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