A failure to listen correctly is often one of the key reasons why productivity and profits are lost. Late projects, misinformed workers or an unclear vision of the company's future are all results of poor communication.

Listening is one of the most important skills in effective communication. When people do not listen correctly there is often a gap between the speaker's expectations and the listener's delivery in business. A failure to listen can create problems between management and reports. Managers think that their expectations are clear, but are often surprised when deliverables are late or have low quality. In addition to reports, it is just as important for manager's to listen closely to their reports in order to have a productive workplace. If managers fail to listen to the concerns or red flags of their reports, they may miss the opportunity of preventing a costly problem in their company's output.

Poor listening by reports can often result in a decrease in productivity that damages the bottom line. However, companies that invest in communication programs see fantastic results. Watson Wyatt's 2005/2006 Communication ROI Study found that between 2000 and 2004 companies with the most effective communication programs achieved a 91 percent total return to shareholders (TRS). Clearly, investing in communication is extremely important.

Here is an example of how one company's poor communication resulted in serious profit loss. Several years ago, a mid-sized company had difficulty completing a project that required collaboration between two separate departments. Collaboration was needed in order to get FDA approval by a certain deadline for a new drug. Unfortunately, poorly communicated expectations prevented the two departments from completing the project on time. The company missed the deadline and experienced a large loss of profit. The bottom line, poor communication can harm the bottom line.

Fortunately, people can improve their listening component of communication to insure that costly mistakes are not made. It takes both practice and dedication, but the investment is well worth it. To practice pro-active listening, remember to use this helpful acronym, FLAIRS™.

Use this six-step listening tool in the following order:

FLAIRS: An Exercise for Effective Listening

1^st      Focus - maintain eye contact with the speaker at all times and focus on the speaker's central message and subject of conversation. Take note of mannerisms because they are important keys to the person's feeling about the topic.

2^nd      Listen (Actively) - repeat back to the speaker what you understand them to have said. For example, "It seems to me that you want the reports finished on Wednesday before the executive meeting, is this correct?" Remember to always ask for confirmation of the information after by asking if you understood correctly. If you are in a meeting and cannot repeat the message out loud, try to repeat the information internally and answer your own questions.

3^rd      Acknowledge the person's tone of voice and affect verbally. For example, "It sounds as if it is really important to have the reports before the meeting, am I wrong?" Again, remember that confirmation of your assumption is an integral part to clearer communication.

4^th      Inquire - ask the speaker if what you listened to and acknowledged was correct. If done correctly, this step should be done after you've listened and acknowledged the speaker. The purpose of inquiring is to take the assumption out of communication.

5^th      Respond - explain your individual opinions and thoughts about the matter at hand. For example, "I think we may be able to finish the first two reports on time, but the third report needs more time to gather all the data."

Important Note: most people tend to skip steps 1-4 and start with an immediate response. Skipping steps 1-4 can create miscommunication, misunderstanding and resentment by the speaker. Only respond after steps 1-4 of listening.

6^th      Summarize & Strategize - work together to come up with a solution. This is a collaborative and interactive discussion that will ideally come up with a solution that will benefit both parties. For example, "I think I can get the third report finished by tomorrow, but could you get Steve and Nancy to help out with these other projects so we can finish on time?" ... "I'll talk to both of them. Good luck with the report."

Communication is not simply speaking -- it is a process that includes active listening, effective deliverance of a message and mutual understanding of both the listener and the communicator. Communication is most effective when listeners make a conscious effort to listen and respond to the communicator and the communicator makes an effort to confirm that their message was understood. Research shows us that people remember 95 percent of what they experience through interactive communication and only 20 percent of what they hear. So practice this exercise and insure that you fully understand the other person's message.

Feedback is Essential to the Communication Process.

Benefits of Communicating Positive Feedback:

• Encourages people to continue on the right track
• Boosts morale and momentum for success

How to Communicate Constructive Feedback:

• Communicate constructive feedback quickly after a difficult situation
• Encourage the person to create a proactive solution and take responsibility
• Go easy on the person but hard on the problem to create cooperation rather than defensiveness

Clearly Communicated Expectations Should Define

• The desired behavior change
• Result you expect
• How you will measure that success