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As businesses find themselves with tighter margins, business owners are seeking ways to consolidate and streamline expenses while also increasing income.

In such an environment, it is not uncommon for companies to pool resources or for a larger company to buy out a series of smaller companies, thus increasing their ability to leverage costs.

While this may make sense from a financial standpoint, there is an inherent danger that could create a residual bottom-line impact in the future.

That danger is defined in one word: Communication.

As a company gets sold off, as companies grow, and as operations become less localized, there is the danger that communications will be affected.

Consider a local company (you’re likely thinking of one right now in your area).

This company was known for its excellent customer service, prompt response, and quality. Customers had direct contact with their service providers, who listened intently to any issues and sought to find solutions. Service providers had a direct line of communication with management, who were willing to entertain new ideas and solutions and provide the needed tools and training to serve customers.

That was until a large corporation bought out the local company, as it had so many others. The functions of the local offices were now issued out from a centralized headquarters in a distant location.

And the leaders…stopped listening.

They stopped listening to their customers, their on-site service providers, their vendors, and their customer service team, all of whom were raising red flags.

In the end, when the leaders stopped listening, customers stopped purchasing.

No amount of capitulation or incentives could remedy the situation, because people wanted to be heard and were not.

The solution is also defined in one word: Communication

Leaders must never forget that communication is not just talking; it is, just as importantly, listening.

Consider your interactions over the next week.

• Are you listening to your clients and customers?
• Are you listening to your advisors?
• Are you listening to your front-line teams?
• Are you listening to the needs of your community and industry?
• Are you listening to your vendors and service providers?

Not listening has a cost, and it could be very high.

But, even more so, listening has great value.

Be a leader…who listens.

For valuable resources on Leadership Strengths and Tools, click here.

Deb Ingino is a highly sought-after executive coach, mentor, consultant, and speaker worldwide. Deb is well versed in business operations and in the importance of asking key questions most business leaders won’t ask themselves. She brings deep experience in leadership development, strategy, high performance team building and effective communication. She has a passion for leading people to discover and maximize their strengths as well as those of fellow team members, while offering advanced strategies to achieve high performance. Deb is the perfect fit if you’re ready to take your leadership and impact to the next level!