Communicating Effectively with Stakeholders
By Toby Dahm, Senior Vice President, Hennessey Capital
What word comes to mind when you hear the name Roger Penske? For most people, that word is success. Roger Penske’s pathway to success began as a part time race car driver. He used his success on the race circuit to take a vigorous dive into the business side of auto racing, where he has remained on top for three decades. Not entirely satisfied by his triumphs on the race track, Roger expanded his universe and built one of the world’s leading transportation empires.
Penske was always part of a team. Whether racing, managing a race team, building a global empire, or orchestrating Super Bowl XL, he was a master of building and leading productive teams. Perhaps the most vivid illustration of his leadership ability was when he chaired the Detroit Super Bowl XL host committee. Penske assembled a 41-member committee that identified problem areas, raised donations, met with NFL officials and garnered volunteer support for the event. The transformation that took place in Detroit, which presented itself as a world class city was amazing. About Penske, Bill Ford, Chairman of Ford Motor Company said “He is the most impressive businessman in the city. Everything he touches works because of his personal drive and because his attention to detail is so exquisite. I just love being around that guy.”
What is it about Roger Penske and other leaders that allows them to possess what seems like a golden touch? It is the ability to communicate effectively with all stakeholders. No person is an island. No matter how much drive and talent an individual has, if they cannot build an effective team and coordinate the effort of their team with suppliers, customers, fans, officials, volunteers, and whatever stakeholders are mission critical, they will fall short of realizing their potential.
A two year study by Deloitte in 2001 confirmed that effective communication is a key factor in business success, which comes as no surprise. While this appears to be common sense, great execution is much less common. We must remind ourselves that while the concept of communication appears simple, we cannot lose sight of its importance. Here are four tips that will help you communicate with the stakeholders of your business:
- Be proactive. As a leader, you not only need to cast and communicate your vision, you also need to be out in front of (or at least on top of) important issues and developments. The sooner you address these, the more influence you will have and less damage will be done by the infamous rumor mill.
- Be genuine. Show concern and empathy for each stakeholder’s position. Knowing your audience and listening to their concerns is what will lead to success here.
- Use simple language. Speak or write the way you normally talk, and avoid acronyms and jargon, which only serves to alienate others and develop cliques. Great leaders are just as easily understood by line worker bees as they are by their board of directors.
- Be positive in your approach. Recognize that there is an element of negotiation in most communication, so look for a win/win outcome. Think from the point of view of your audience. What’s in it for them? Roger Penske was masterful in getting thousands of volunteers to see the success of the Super Bowl as a personal success for them.
While Roger Penske is immensely talented, passionate, and determined, he would not have achieved the success he has without being a great communicator, which enabled him to get thousands of people to embrace and achieve his vision.
