| BACKGROUND
Today we have more ways of communicating with each other than ever
before. We have telephone, fax, e-mail, instant messaging, voice
mail, video links, web links, internet, mobile wireless communications,
and yet this is one of our major challenges in business.
I remember a simple definition for communications that was in my
freshman Speech textbook in my first-year engineering curriculum.
Simply stated, communication is that activity that creates understanding
in the receiver that is the same understanding that is in the transmitter.
How profound… couldn’t be simpler, right?
What we may fail to keep in mind is that much of the communications
may rely on modern delivery systems; however we are still dealing
with people. People have feelings, biases, and preconceived notions
based on experience, fear and doubt.
Moreover, these same people are inundated with communications from
all other sources. In fact, this “noise” detracts from
our overall ability to lock on to any one communication and complete
it properly.
Extend this to the structured workplace environment, add in interruptions,
telephone calls and everything else, and it is apparent for all
the transmitting vehicles: We do not have a good receiver and thus
communication does not take place properly.
SETTING UP COMMUNICATIONS
The communications system can determine the effectiveness of the
project participants. A communications system is not necessarily
medium dependent. It is simply the bi-directional exchange of key
information to enhance progress.
By definition, the communications system must effectively do the
following:
- Transfer information without distortion.
- Acknowledge and confirm information.
- Maintain a certain amount of security.
- Allow a channel for meaningful feedback.
- Create understanding in the receiver intended by the transmitter.
- Act as a document and retrieval system.
These items require a fair amount of set up and security to work
in a real development situation. In addition, they are multidimensional
in that communications occur both internal and external to the company.
The importance of a properly implemented communications system cannot
be overstated. It will prove to be invaluable as the project progresses
and as details become more prolific and harder to keep track of.
A MODEL FOR COMMUNICATIONS
Communications within a company and outside of the company occur
on all levels. Consider the illustration below. There are communications
within the company, through the channel, and to the customer. At
all levels and in all directions, the transmission and receipt of
messages, data, and decisions are opportunities for misunderstanding,
inflated expectations, and inaccuracy.
We all have experimented with the game of “pass the message.”
This game illustrates how a message can change its meaning or emphasis
as it passes from one person to another. Consider communications
between companies in which the elements of time delay and personalities
and focus differ. These factors complicate the job of accurate receipt
of transmitted data, as the Figure illustrates.
Depending on the stage of the transaction, there can be diagonal
communications, such as sales personnel of the manufacturer communicating
with the engineering or finance personnel of the customer. Also
consider how many individuals a given message passes through and
the degree of interpretation that can take place as it is progressing
the pathway from transmitter to receiver.
Another element to consider is the security of communications both
within the company and outside of the company. The heavy black lines
on the illustration can serve to illustrate firewalls that prevent
the breach of communications security. As we will see in the next
section, the use of network communications has improved the speed
of information transfer tremendously. It has also introduced a whole
new set of security problems—such is the nature of progress.

Communications
COMMUNICATIONS MECHANICS
With respect to protecting intellectual property, trade secrets,
and interests of the business in general, network communications
cannot protect your company. There is no software, protocol, or
arrangement of hardware that can make up for poor judgment on the
part of team members. In order to use these tools effectively, each
member of the company needs to operate like a businessperson. This
means being savvy enough to know what and what not to disclose to
personnel outside of the company.
If the company personnel understand the business, the threats,
and the opportunities and are truly interested in furthering the
business, they will conduct themselves in your best interests. If
they do not understand the issues, train them quickly, or eliminate
them as possible sources of information leaks.
Implement internal communications controls to be able to determine
whether sensitive information is being made available to competitors
or to the general market, where it can fall into the hands of competitors.
As a final note, secure people you can trust in every aspect of
the company. There are no systems (electronic or otherwise) that
can provide security as good as trustworthy people who have a vested
interest in the business and are streetwise enough to perform their
jobs and protect the company’s interests.
COLLABORATIVE COMMUNICATIONS
The following is a listing of the various levels of communications.
- Executive-Level Communications: In this area issues such as
company direction, mergers/acquisitions are appropriate here but
not necessarily at other levels.
- Product Planning and Product Evolution: Obsolescence plans,
Brand Label plans, etc.
- Product Management: Product Margins, Winners, Losers, etc.
- Development Management: Timeliness, Cleanliness of design,
quality levels, etc.
- Manufacturing: Yield figures, Costs, Value Chain
- Aftermarket: Parts margins, long-term product support issues,
etc.
Each of the information at these various levels may be better to
stay at these levels. For example, some information from the Executive
level has no place amongst levels below the Executive level.
There are also communications considerations during the various
phases of a program.
These phases are listed below.
Protocols for different stages of a program:
- Beginning of program
- Development
- Problems resolution
- Liability exposure
- Loss mitigation
- Reconstitution after a setback
- Hotly contested competitive areas
COMMUNICATIONS BREAKDOWNS
There is one thought here: Fix them and fast. Communications is
the fuel of a product development effort. If there are problems
with personnel communicating, the program grinds to a halt. This
happens most often when “someone” is “waiting
for an answer.”
Time is of the essence. No program can “wait for a decision.”
The program must be actively worked on by all where each person
involved understands the importance of accuracy and timeliness in
communications.
FIELD COMMUNICATIONS
The issue of field communications is quite complex, with information
being processed by individuals with different agenda and loyalties.
Consider the following showing potential routes to market.

Maintaining accuracy in the message from the manufacturer through
the channel to the customer can be a very difficult one. This is
especially true where some of the intermediaries may have competing
lines or functional replacements. As shown next the communication
must be bi-directional to achieve maximum benefit. How doe the customer
requirements and needs get communicated back to the manufacturer
to create the next product or version of product?
KEEP CLOSE TO THE CUSTOMER AND MAINTAIN COVERAGE
This is an important point. A repeated pattern, occurring as companies
grow, can cause them to become further and further removed from
the customer, and the all-important dialogue that must occur between
the two. The Figure shows that as the channel becomes more complex
and has more and more players in it, the company can lose touch
with the customer needs and feedback on product performance.
In the illustration, the manufacturer gets to the customer via
several players in the channel. Each participant (CH-1, CH-2, CH-3,
etc.) diffuses the information flow. This diffusion affects the
outward flow from the manufacturer to the customer and feedback
to the manufacturer. This can isolate the manufacturer from the
market and potentially place them in a dangerous position of losing
business.
Furthermore, since members of the channel are often independent
businessmen, the agenda and motivation of each participant factor
into the overall communications integrity.
Channel Isolation
REMOTE SALES UNITS
The remote regional offices should be tied into a network of communications
with the factory, whereby information flows freely between the two.
This is illustrated in the Figure, which depicts a sales organization
that has several regional offices that work through remote sales
offices. These remote offices can be company owned or individual
businesses. In either case they get their direction from the regional
sales office, and then the regional sales office gets their direction
from the factory.

Networked Remote Sales Units
In this way a uniform, new product story can be diffused throughout
the sales organization. Policies are communicated in a consistent
format and information is fed back to the manufacturer in a consistent
fashion from the regional sales office.
It is very important to have accurate and consistent information
transfer between the terminal units and the regional offices and
the factory. This is because new product decisions may have to be
made early in the introduction to facilitate success. Given this
fact, accuracy of communications cannot be an issue.
Because every product is different, and the sales route to market
may vary, this model is not intended to be the single solution to
all situations; however, it does illustrate the need for accurate
and directed communications between the manufacturer and the remote
sales offices.
COMMUNICATIONS RECORDS
Keeping the records of communication in our litigious society is
an absolute must. In addition, it simply is good business practice
to do so. Establishing a record of communication that is retrievable
and sequential helps in negotiations, separating fact from feelings,
and can be invaluable in troubleshooting problems. In fact, there
could be a case made for establishing a formal communications review
during a program. Since everyone is so busy, we all process communications
and copy everyone on a project “just to make sure” everyone
has the information. In reality, there seems to be little respect
of the protocol of communications anymore. Anyone can e-mail anyone.
In fact with e-mail programs, you can get sensitive information
to personnel without the main distribution list being aware of it.
This blind copying can help overcome political obstacles or create
them.
At the beginning of a program it is essential to establish the
protocol for communications and record keeping so that as each issue
comes up, the announcement, assessment, disposition can be retraced
if need be.
There is also the record keeping required for liability mitigation.
If something should happen during the course of the product life
and the company needs to defend itself in a liability suit, the
retention of good records, helped in two ways. First, the actual
issues and disposition if handled properly) can assist in the company’s
defense or at least mitigate the damages. Secondly, the fact that
the company was diligent in keeping the records in the first place
goes a long way to establish credibility.
The manager should establish the protocol and differentiate it
between the market issues, product development issues, and contractual
issues as well as each of the various aspects.
COMMUNICATIONS OUTLINE
The following outline shows the various communications areas that
one would be interested in focusing on in a development program.
- Internal Correspondence
- Sales Department
- Development
- Finance
- Manufacturing
- Quality
- External Correspondence
- Customers
- Account Development
- Action Plans
- New Items/Issues
- Problems/Solutions
- Agencies
- Qualifications
- Testing
- Agency Approvals
- Reps/Distributors/Agents
- Contract
- Apr/Territory
- Sales Goals
- Forecasts
- Issues
Portions excerpted from Marc A. Annacchino's book The
Pursuit of New Product Development, ISBN-10: 0-7506-7993-X.
Marc Annacchino, P.E., is owner of Marconi Product Development
Institute, Inc., a company providing consulting services, contract
development, seminars, and other services. He can be reached at
Marconi@execpc.com.
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