Why Team Communication is Important for Your Business

Kalpita Thipsay

October 10, 2020

“Communication – the human connection – is the key to personal and career success.” The quote by the best-selling author Paul J. Meyer says it all about the value that communication holds in our lives. Though most of us take communication for granted, if appropriately harnessed, this asset can work wonders for individuals, teams or even entire businesses.

Talking specifically about business, the foundation of a company or a business lies on the strength and capabilities of its internal teams. And effective team communication is important among all stakeholders to build strong and resilient teams. Effective being the keyword here, implies the form of communication that has an open flow of information and ideas between relevant parties and the one that is clear, timely, understandable, succinct and two-way in nature.

What Are The Benefits of Effective Communication for Teams

  • Greater Understanding
  • Good communication ensures that the company’s values, beliefs and vision are conveyed to all the employees. One of the benefits of team communication is that it encourages daily interactions with an open flow of ideas and information. Such a culture nurtures high employee engagement and creative thinking. It also ensures an explicit understanding of roles and responsibilities pertaining to all individuals. In turn, this reduces the chances of ambiguity or misunderstandings, leaving no scope for animosity among team members.

  • Increased Problem-Solving
  • Appropriate and timely team communication is important as it develops an understanding that aids problem-solving capabilities of the group. It also increases the chances of early detection as well as intimation of potential problems to the right stakeholders, so that timely actions can be taken. Such a working mechanism promotes the practice of agile methodologies within the organization.

  • Team Strengthening
  • Another benefit of team communication is that it also helps foster strong interpersonal relations among employees. An open line of communication with peers as well as senior management encourages willingness within the team to reach out to others. Such a culture encourages more significant levels of trust and commitment within the company. As a result, the team members feel an enhanced sense of belongingness towards the organization, in turn, alleviating absenteeism and staff attrition.

  • Increased Productivity
  • Such a business, where due importance is given to team communication, helps create a working environment where quick responses and agility thrive. It ensures reduced delays in project completions and minimal resource wastages. Ultimately, the productivity of the team increases, driving up the overall organizational efficiency.

    At the end, only when the internal communication between business teams is strong, the business can effectively communicate its ideologies/products/services to the external world.

How to Reap the Benefits of Team Communication

A “Business Outlook” study states that an average business executive spends about three-quarters of their day engaged in oral or written form of communication. Yes, you read that right. So, if you go by the experts’ opinions, team communication is important for a business.

For any business, every policy or a cultural change comes from top-down. It is upon the managers and higher-level executives to create a culture where effective and open communication flourishes. For business managers, there are various IIM MBA Courses available on communication which can help them equip themselves with the right knowledge on how to practice as well as impart best communication practices in their businesses.

About the Author


Kalpita Thipsay is an MBA graduate from the Class of 2020 at IIM Udaipur. Her areas of interest range from marketing to analytics. With prior experience in the IT industry, she is now a Consultant at Deloitte USI. She has a passion for dancing and enjoys being her most expressive self during her performances. Being a creative person, she enjoys everything from music to art and painting.You can connect with her on LinkedIn