If you’ve already tried ChatGPT and other GenAI platforms, you’ve experienced the thrill of getting paragraphs of information within seconds via a short, simple prompt. However, while AI is heralding a new era of enhanced productivity, new research from Wiley has found that 80 per cent of workers feel soft skills are more important than ever due to the rise of AI.
In my role as a founder and CEO, and having experienced the pandemic, interest rate raises, the great reshuffle and now a tight labour market all within a few years, I’ve seen the impact of the human touch of authentic and impactful leadership and communication.
In the eight-plus years as CEO and founder, I’ve truly come to understand the various skills required to uphold a company, including the strategic, execution and technical skills, the hustle, the resilience, the mindsets and the emotional intelligence required – all of which are not GenAI-able. While founders are most often marked by their grit, perseverance and flexibility in leadership, I’ve found the most critical skill to success to be effective communication.
The elements of effective communication
Knowing how to communicate is layered – it’s more than just knowing what you have to say in specific contexts. Particularly, it means the ability to know when there is an opportunity or a requirement for communication, what that message should be and how to craft it for maximum impact.
Events such as company milestones and wins (big and small) are great opportunities for leaders to communicate their appreciation for staff and to recognise their hard work.
As a founder, I have always known the key to VentureCrowd’s success is the power of our team. When your team’s efforts are recognised and appreciated, you get a potent team that is happy and motivated to pursue your shared vision.
On the other hand, communication is a requirement when it comes to scenarios such as quarterly and annual performance reports, crises and uncertain times in the broader environment. Communication during report seasons is a form of accountability that shows stakeholders you are keeping track and can be trusted. During crises and uncertain times, communicating ensures relevant stakeholders are well-informed and kept in the loop, fostering confidence in a situation that would otherwise create misunderstandings and lead to preconceptions.
Once you’ve established that it’s time to communicate, ask yourself: What are the key points you want to deliver? How can you put it in a way your target audience will understand?
The most important thing when crafting a message is to ensure that it’s written for the target audience, in simple and understandable terms – avoiding jargon – and in a sincere manner. For example, if you’re talking to an investor, make sure you research their background and interest, what they’re after and clearly explain your path to profitability and your strategy to help them understand the business and to increase the probability of them investing.
Communicating in today’s climate and the GenAI age
With the stock market looking unstable and speculation around the economy, right now founders should be actively engaging with stakeholders to reiterate their vision and long-term perspective, share their latest updates, address concerns and maintain transparency.
When it comes to communicating with stakeholders, my strong recommendation is to practically do these three things:
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Be active on owned channels, including social media and the official website
Owned channels are the first place people go to when they want to know what a business is doing next to tackle a crisis and how a founder reacts to current affairs. It’s the first point of contact especially when there is zero to little media presence. Furthermore, messaging on owned channels is completely within every founder’s control, making it an optimal platform to share your perspective of things.
British entrepreneur Steven Bartlett is a stellar example of a founder who leverages social media platforms (LinkedIn, Instagram, YouTube) to share his latest thought leadership, experience and updates on his ventures. With over 2 million followers on LinkedIn, he has built a trustworthy reputation and his storytelling has resonated with many. Both of these qualities increase the probability of external investment, new opportunities and company exposure.
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Monitor public sentiment and discussions and be proactive when there are concerns
Good communication requires active listening. In the internet age, the equivalent of active listening as a founder or company is to monitor public sentiment, follow the news and keep abreast of the latest discussions, especially those that pertain to your field or directly mention your company or name.
Domino’s Pizza uses social listening to track customer feedback and created its Tweet-to-Order system in response to observing customer preferences for quicker, easier ordering. Similarly, Lego monitors social media to engage with fans and address concerns and has created products based on customer suggestions gathered through social listening.
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Communicate carefully and with intentionality
While it’s important to be active in communication, founders should be mindful of oversharing or communicating for the sake of jumping on trends. Adages like ‘loose lips sink ships’ demonstrate the importance of speaking cautiously. And while these are wise words for life in general, it’s a golden rule for founders that are always in the public eye.
One notorious example of loose lips that did sink a ship is Gerald Ratner, former CEO of jewellery chain Ratners Group. His joking remarks in a speech that the company’s products were “cheaper than a sandwich” saw the company’s value plummet by around £500 million, forcing it to change its name. Ratner also lost his job.
When executed well regularly, communication can diffuse conflict, improve team culture and help you raise capital faster. Without it, no matter how solid your product or strategy may be, real success remains a challenge even if you have the right tools, mindset and resilience.
As founders, when you keep silent, alarm bells will ring, especially when it comes to crises and uncertain times. If you communicate well, even if the message isn’t great, you will build trust and people will reach out to support you.
By Steve Maarbani, CEO of VentureCrowd
This article was first published by Kochie’s Business Builders