Communications Management for Budgets and Financial Plans - Case Study Example

Manage budgets and financial plans Once a human being has arrived on this earth, communication is the largest single factor determining what kinds of relationships he makes with others and what happens to him Virginia Satir 1916-88 Psychoanalyst and therapist1 1.0 Introduction Communication can be defined as the method or means by which information of any kind can be conveyed from one person or place to another person or place. Communication can be in the form of a speech, sign language, body language and writing. While communication can be one thing, effective communication is another. What does one mean by effective communication Trivial communication between friends need not necessarily be effective, whereas one facing an interview board does require effective communication. Why is effective communication paramount to ones, or an organization's success I will analyze three possible situations within an organization that mandates effective communication, and reveals why such strategies were chosen. Effective communication is made up of voice clarity, subject appropriateness, and language simplicity. Clarity is an important component of effective communication. Unless communication between individuals or groups is clear, communication will lack direction and can be misinterpreted. Communication is a vital link in our life. Business dealings, financial markets, legal or medical opinions, education, sports or entertainment are all a part of our life. To sustain or succeed, communication is vital. Wars have been won and lost through the use of effective and non-effective communication. Subject appropriateness is another component of effective communication. I, as a speaker must be able to deliver precise, subjective information to make you and others receptive to what I say. If I were to repeatedly go on lecturing without any participation from the audience, the whole exercise would lose its importance and nullify the objective. Also, if I were to go on stage and make a presentation without proper preparation, it may end up being monotonous, elaborate and finally go down as being a drab. An unprepared elaborate speech will only rebuke the audience. No one likes to be held up by lengthy lectures or speeches. The listener/audience will soon begin to lose interest and direction. Time is precious. Effective communication must thus be precise and concise. Language simplicity is the third feature in effective communication. Use of strong language can harm the intent of such an exercise. Confusion will prevail. The purpose of making a point will be lost. What good would it be, if I were to use strong language that finds most people in the audience searching for meanings Simple language that is easily understood will make the presentation most effective. The idea is to make those present understand the focus of the presentation and at the same time the reason behind it. Thus, it must be said that for effective communication, clarity, appropriateness, and simple language is important. In order to understand how effective communication can deliver the desired results at a professional level, I have traced three potential scenarios: 1. An address to team leaders on the introduction of the annual budget 2. A departmental meeting citing the reason for a budgetary cut 3. A capital proposal in an operational area 2.0 Effective communication and strategies while introducing an annual budget: and explaining their responsibilities to the team leaders within your department To present a company's annual financial budget to leaders of various departments calls for very precise and informative data. First and foremost, I, as the speaker must be well versed with financial terms. I should be able to interpret and conclude to all team members the logic behind any thrust in funding a particular project or division. It must be understood that all information being spelt out by me is in keeping with the company's new policies, and approved by senior managers and board members. At no point of time should there be an element of doubt. In keeping with the presentation, I should be able to demonstrate a mastery over the subject. I must be expressive and at the same time convincing. Policy changes resulting from slow-downs or excessive manpower will be presented with strong supportive evidence. The leaders' must understand that by such moves, the organization and its workforce stands to benefit. For presenting the budget, it is imperative to have the active participation of all department leaders. All required fields of information to support the budget must be addressed. The inputs from leaders will help in compiling an unbiased and proactive policy. Wherever there is scope for debate, I must be able to justify my views. To achieve this, I need to use effective verbal communication, and/or by using graphs, slides, or PowerPoint presentations. This will help me in demonstrating the importance of the budget and reflect the positives of it, leaving each member of the department embedded with a feeling of elation and satisfaction. The participants must be able to leave the conference hall feeling that the budget is indeed a move in the right direction. The success of this exercise rests totally on my shoulders, as it is my duty to demonstrate the reason for enlarging or cutting budgets to departments to enhance company profits. I must be able to inculcate a sense of oneness among them and ascertain their backing in his justification. The presentation must demonstrate trustworthiness, must be highly motivating, and be interactive. I should also be able to motivate the leaders by stressing on the gains by introducing this budget. Their duty to fulfill the management's target must be spelt out clearly. Motivation through incentives and bonuses will be the driving force. This way, all leaders will accept the annual budget despite limitations, support it for the opportunities that it proposes for them, and inculcate an aura of higher commitment to enhance profits. The budget was compiled after interacting with team leaders. It is they who can interpret grass root difficulties faced by their respective departments in implementing company targets. The feedback helped me understand the problem, and how it could be overcome. 3.0 Effective communication and strategies for a department meeting giving news of a budget cut: as a result of poor profit levels across the organisation. It is extremely difficult to justify the reasons for cutting budget allocations to members of a department which will bear the brunt of such a ruling. All possible means to acquiescence this move will meet with strong objections. Therefore, it is imperative that I must demonstrate using my communication skills the reason for the move. Every possible means must be used to convince the department of its decision. As all classes of members belonging to the department are involved in this presentation, I have to take extra care to present the case in a language as simple as possible. The idea of this exercise is to make all present understand clearly why the management felt the need to cut budget allocations to this department. There must be a clear definition for this move. In order to make this session interactive and positive, I will be focusing on questioning their ethics in objecting to my proposal. I must be ready to give explicit and convincing response to these. Unless I have supporting evidence to back my claims, this exercise will be a disaster. As the members of the department interact with me, it will instigate further interaction and mitigate my cause in driving home the cause for my action. Such participation will also expose any misgivings and leave the members feeling convinced. Therefore, the active participation of the members of the department is important. They will leave thinking that they were a part of the think-tank and that the move to cut budget allocations is justified. Sufficient time should be given to them to ask questions, and I as the speaker, must be able to give positive and convincing replies. I must support my views with sufficient supporting and reliable documents. Members of that department must be made accountable. Comparisons between different departmental performances can also be shown through graphics and slide shows. This will help support the reason for the anticipated cut. They should however be made to understand that this measure to cut budget is temporary, and could be brought back on track through their positive future actions. This will motivate them to perform better. Also, members of that department can be induced into working harder by announcing higher incentives. This will motivate the team to perform better and increase productivity. This is effective communication. 4.0 Effective communication and strategies in developing a capital proposal: to install either new manufacturing plant or a new computer system in your operational area In order to project necessities for enhanced performance and productivity, I need to pay special care to minute details. While discussing the implementation of a new manufacturing or computer system, I must be able to justify my recommendations with supporting documents. Costs Vs performance is mandatory. Otherwise, the presentation will lack direction. Management's interest lies in increasing company profits, and so, I must be able to project practical and reasonable goals. Effective communication through PowerPoint presentations, graphic displays, and figures will help deliver the objective. 5.0 Conclusion Effective communication is a prerequisite for success. At the professional level, one must be able to converse in explicit terms and support their actions or words with supporting documents. The style and body language also has a positive effect on the outcome of discussions. Points must be clear and accurate, and most importantly, the language should be simple and understandable. Thus, it is imperative that, for effective communication, clarity of thought and sound, appropriateness, and simplicity of the language plays a very important role in success. 6.0 References 1. Principles of Effective Communication for Public Relations Practitioners, www.plu.edu/conntm/Principles.ppt 2. Kris Cole, Crystal clear communication: Skills for understanding and being understood, 2nd edition, EastWest Books (Madras) Pvt. Ltd in arrangement with Pearson Education Australia Pty Limited 2000. Read More