NEVER ASSUME

Never assume that you have communicated enough, particularly if you're dealing with an ongoing issue. If there is a directive or priority that remains in force, let people know that it's still at the top of the list. Let's say that you've told your team that it's essential to watch expenses. At the next meeting, you remind them again. By the third session, you might assume that they've gotten the message. The problem with this assumption is that there are those who will think that you've moved on to the next priority, that watching expenses is no longer an issue because you didn't mention it. In addition, there are going to be those who didn't like the directive in the first place and who were just waiting for it to blow over or fade away. If an issue is still important, then keep it top-of-mind for your team.

Another way to ensure that you have communicated effectively is to do what the military refers to as “back briefing,” which I learned from Morgan Mann, a Marine lieutenant colonel and Kellogg graduate who was a guest speaker in my class. Here's how he described the technique. Immediately following your conversation with someone, you ascertain whether the person understood the message. For example, you might say, “Just to be certain that I clearly communicated to you, can you please tell me how you are going to do such-and-such task?” This technique allows you to catch any miscommunication on the spot. For example, the other person may “brief back” a plan that is missing a critical component. When you ask about that particular component, the person may say that you never mentioned it. Without the back briefing, there would be a good chance that the message would be misinterpreted or a key detail overlooked.

Another aspect of never making an assumption is being precise about what you mean. Although an issue or idea may seem completely obvious to you, don't assume that it appears that way to everyone. Here's an example from my days as CFO. We had an issue with our days sales outstanding (DSO), which reflects the number of days it takes to collect accounts receivable. The larger our DSO, the longer we had to wait to collect the money owed to us, and the more our cash flow was impacted. I commented in a memo that reducing DSO was a priority and that I wanted to get ideas on how we could accomplish it. Almost immediately, one of the Baxter analysts called me. The best way to reduce our DSO, he told me, was to stop selling everything in New York and New Jersey. With no sales, the DSO would automatically decline. It made perfect sense to him.

When I reminded him that we were a health care company selling drug-delivery products that patients really needed, he responded, “I didn't say it was going to be easy.” He also admitted that his plan probably wouldn't be too good for revenues, either. Although humorous, the story makes an important point: I was not clear in my communication. I had assumed that people would understand the importance of continuing to sell our products while reducing DSO. That assumption led to a gap in understanding.

I encountered a similar occurrence when I put out a memo about the need to get our inventory levels under control. Later, when I went to visit one of our facilities, I asked about our customer service. Were we giving our customers the highest level of service possible? The answer wasn't what I wanted to hear. I found out that the facility had reduced inventory on some of our highest-volume products. When I asked why, someone at the plant showed me a memo that “some guy” had sent.

“I'm that guy!” I told him. “I sent that memo.”

We straightened out the inventory situation, and I learned a valuable lesson: say what you mean, exactly as you mean it. In this case, I should have communicated the need to reduce inventory while continuing to sell our products and provide the highest service levels to our customers.