Business communications

This is the third and final module in the programme. It’s called Small Business Operations. 

The module has been created to:

• Build on the learning from the previous modules 
• Prepare you to put the learning into practice by operating and reviewing your own small business.

By the end of this module you’ll be able to operate a small business in a multi-cultural environment by implementing a business plan and reviewing the performance of the business.

Time to complete this module

This module is worth 20 Credits, which is roughly equivalent to 200 hours of learning. Learning time includes reading, watching videos, completing learning activities, processing ideas, discussing what you’re learning with others, and completing the assessments.

This module represents one-third of the whole programme of study. You have already done most of the theoretical learning and some of the practical work. This final part of the programme is more focussed on the practical aspect.

You will need to spend eight weeks running your own business as part of your assessment so it is important to get started on this as soon as possible. This accounts for most of the learning hours for this module.

Assessment outline

To finish this module you need to complete two assessments:

SBE03A1: Interpersonal skills. You will need to:

1. Provide evidence of the interpersonal skills and methods you use to operate your business professionally, ethically and in a socially and culturally responsible manner.

SBE03A2: Refined business plan. You will need to:

1. Run your business for a period of eight weeks.
2. Provide evidence of your management of your small business.
3. Review the performance of your business over the eight-week period and make changes accordingly.

Go to the assessment section now and read the full assessment requirements.

Effective business communication ensures clarity, fosters collaboration, enhances relationships with stakeholders, and drives business success by ensuring everyone is informed and aligned.

To succeed in business you’ll need to:

1. Ensure that your business relationships align with your business goals and values.
2. Engage with tangata whenua when appropriate.
3. Communicate effectively and with empathy.
4. Resolve conflicts.
5. Conduct business negotiations.
6. Obtain and act on feedback from both internal and external stakeholders.

We’ll explore each of these points in this topic.

Key business relationships refer to the connections that a business establishes to support its operations, growth, and success. These relationships can encompass a wide range of individuals and organisations that have a significant impact on the business's activities and outcomes. Here is a recap of key business relationships covered in this programme:

From the key relationships mentioned above, you can build your network. Benefits of networking include opportunity identification, knowledge sharing, resource access, brand exposure, and personal growth. Networking was covered earlier in this programme.

Effective management of key business relationships requires clear communication, mutual respect, and trust. By nurturing these relationships, businesses can create value, mitigate risks, and enhance their competitive advantage in the marketplace.

Internal business partnerships

External business partnerships were mentioned as a key business relationship above. This is not to be confused with the partnership business structure, which can be thought of as an internal business partnership. Earlier in this programme we looked at the legal implications of the partnership business structure. Here are some tips for navigating the other aspects of an internal business partnership:

• Establish clear roles and responsibilities: Clearly define each partner's roles, responsibilities, and areas of expertise within the business. This clarity helps prevent misunderstandings, overlaps, or conflicts in decision-making and execution.
• Communicate openly and transparently: Foster open and transparent communication channels among partners to discuss goals, expectations, challenges, and concerns. Regular meetings, check-ins, and updates ensure that everyone is aligned and informed.
• Set mutual goals: Collaboratively set mutual goals and objectives for the partnership, outlining what you want to achieve together and how success will be measured. Having a shared vision fosters commitment and accountability among partners.
• Establish conflict resolution mechanisms: Develop processes and mechanisms for resolving conflicts or disagreements that may arise during the partnership. Establishing ground rules, mediation procedures, or third-party facilitators can help address issues constructively.
• Build trust and respect: Cultivate a culture of trust, respect, and mutual support among partners by honouring commitments, respecting boundaries, and valuing each other's contributions. Trust forms the foundation for successful partnerships.
• Celebrate successes and learn from failures: Acknowledge and celebrate achievements and milestones reached together as partners. Similarly, view failures or setbacks as opportunities for learning, growth, and improvement as a team.
• Invest in relationship building: Invest time and effort in building strong personal relationships with your business partners. Getting to know each other's strengths, weaknesses, and working styles fosters camaraderie and collaboration.
• Seek professional guidance if needed: If navigating internal partnerships becomes challenging, consider seeking professional guidance or mediation from business advisors, consultants, or coaches. An external perspective can provide valuable insights and facilitate constructive dialogue.
• Establish a partnership agreement: Partnership agreements are legally binding contracts that outline the terms and conditions of a business partnership. They define each partner's roles, responsibilities, contributions, profit and loss sharing, decision-making processes, and procedures for resolving disputes. These agreements help prevent misunderstandings, provide a clear framework for operations, and protect the interests of all partners by ensuring everyone is aligned on the partnership's goals and expectations.

Internal business partnerships formed from friendships are not uncommon, especially in small businesses. While forming a business partnership with friends can offer significant advantages, it's essential for partners to approach the relationship with professionalism, clarity, and a shared commitment to the success of the business. By leveraging the strengths of their friendship while also maintaining clear boundaries and communication, friends can build successful businesses together.

Tangata whenua

Tangata whenua translates to people of the land and refers to Māori people of a particular area or region. Tangata whenua have deep ancestral ties to the land and hold traditional rights, responsibilities, and cultural connections to their ancestral territories.

Tangata whenua are organised into iwi and hapū, which are the primary social and political units within Māori society. They often participate in local and national decision-making processes, advocating for their rights and interests. Kaitiaki are typically representatives of the local iwi tribe or hapū who have ancestral ties and traditional authority over the land in question.

Tangata whenua have the responsibility to protect and manage the environment and resources according to traditional practices and values. They possess rights to land and resources and play a crucial role in the management and conservation of these within their territories.

You need to engage with tangata whenua when projects or decisions may impact their lands, resources, or cultural heritage. This includes activities such as land development, environmental management and resource extraction. Early and meaningful engagement ensures their rights and interests are respected, aligns with legal obligations under Te Tiriti o Waitangi, and fosters positive, collaborative relationships.

Working with tangata whenua in New Zealand involves understanding and respecting their cultural values, customs, and rights as people of the land. Here is some guidance for effectively collaborating with tangata whenua:

• Respect and recognition: Acknowledge the status of tangata whenua as the custodians of the land. Show respect for their culture, traditions, and knowledge systems. Recognise the importance of Te Tiriti o Waitangi and its principles in guiding interactions and partnerships. Respect cultural practices and integrate them into project plans where appropriate. Be open to adjusting approaches based on feedback from tangata whenua.
• Engagement and partnership: Foster genuine partnerships based on mutual respect and shared goals. Engage early and consistently in decision-making processes that affect their lands, resources, and communities. Make an effort. Learn about their history and be mindful of the challenges they have faced through colonisation.
• Consultation and participation: Ensure meaningful consultation, where tangata whenua have a real opportunity to influence outcomes. Involve them in planning, implementation, and monitoring stages of projects or initiatives. Their perspectives are valuable so pay for their time and willingness to share their mātauranga (wisdom). If you are not sure how much to pay, ask your iwi or hapū contact to recommend a koha (gift). In simple terms, this is about giving something before you receive, and is an appropriate way to show you value this partnership.
• Building relationships: Invest time in building strong, trust-based relationships with tangata whenua communities and leaders.

Communicating with empathy

Communicating with empathy in business fosters stronger connections, trust, and understanding between individuals, leading to more productive and positive interactions.

Communicating with empathy involves understanding and acknowledging the emotions, perspectives, and experiences of others while effectively conveying your own message. Here are some key principles:

• Active listening: Pay close attention to what others are saying without interrupting. Show that you're engaged through verbal and non-verbal cues like nodding or maintaining eye contact. Reflect back what you've heard to ensure understanding.
• Acknowledge emotions: Recognise and validate the emotions of others. This doesn't mean you have to agree with them, but showing empathy involves understanding how they feel. Phrases like "I understand that this situation is frustrating for you" can go a long way.
• Use inclusive language: Be mindful of the words you use to ensure they are respectful and inclusive of diverse perspectives. Avoid language that may unintentionally marginalise or exclude others.
• Seek understanding: Take the time to understand the perspective of others, especially when there's disagreement or conflict. Ask open-ended questions to gain insight into their thoughts and feelings.

Cross-cultural communication

First of all, what is culture?

Culture refers to the shared beliefs, values, customs and traditions that characterise a particular group of people or society. It encompasses the way of life, social norms, and identity of a community, shaping its members' perspectives, interactions, and behaviours. Culture is learned and transmitted from one generation to the next through socialisation, education, and experience, influencing individuals' attitudes, beliefs, and worldviews.

To navigate cross-cultural communication, start by developing an understanding of the cultural norms, values, beliefs, and communication styles of the people you'll be interacting with. This helps you anticipate potential misunderstandings and adapt your communication accordingly.

Remember that non-verbal cues such as gestures, facial expressions, and body language vary across cultures and can have different meanings. Increase your awareness of cultural differences in non-verbal communication to avoid misunderstandings and promote effective cross-cultural interactions.

Avoid making assumptions or judgments based on your own cultural perspective, and be open-minded and accepting of diverse ways of thinking and doing things.

Tikanga

In Māori culture, tikanga can be described as the behavioural guidelines for interacting with others. Understanding and observing tikanga is essential for maintaining harmony and engaging in respectful interactions.

WATCH

Tikanga Māori 101

Duration: 2:18

This video provides an introduction to tikanga and recaps the concepts of tapu and noa, which were raised earlier in this programme.

Communicating through language barriers

Communicating through language barriers can present challenges. Here are some tips:

• Use clear language: Use simple and clear language, avoiding slang and terminology that may be difficult to translate or understand.
• Speak clearly: Speak at a moderate pace and enunciate your words clearly. Avoid speaking too fast or mumbling, as this can make it more challenging for non-native speakers to follow along.
• Use visual aids: Visual aids such as charts, graphs, diagrams, or pictures can help convey your message more effectively.
• Utilise translation tools: Use translation tools when direct translation is necessary. These tools can help bridge the language gap by providing real-time translation of spoken or written text. Examples of these tools include Google Translate and Microsoft Translator.
• Encourage and seek clarification: Encourage the other person to ask questions or seek clarification if they don't understand something. Similarly, be proactive in asking for clarification if you're unsure about something they've said.
• Use non-verbal communication: Non-verbal cues such as gestures, facial expressions, and body language can help convey meaning and facilitate communication, even when language barriers are present. Be mindful of your non-verbal cues and pay attention to those of the other person.
• Be patient and respectful: Communicating through language barriers may require extra time and effort, so be patient and respectful throughout the process. Avoid becoming frustrated or impatient and show understanding and empathy towards the other person's efforts to communicate.
• Seek common ground: Look for common ground or shared experiences that you can use as a basis for communication. Finding commonalities can help bridge cultural and linguistic differences.
• Learn basic phrases: If you frequently communicate with individuals who speak a different language, consider learning some basic phrases in their language. Even a few words or phrases can go a long way in assisting with communication, building rapport and showing respect for their culture.

Communicating with people with specific accessibility needs

Communication with people with impairments or disabilities requires sensitivity, understanding, and flexibility to accommodate diverse needs and preferences.

Conflict resolution is the process of addressing and resolving disputes or disagreements between individuals or groups in a constructive and mutually satisfactory manner. Conflicts can arise due to differences in opinions, interests, values, or goals. Effectively managing and resolving conflicts is essential for maintaining a positive environment.

Dealing with a conflict situation can be quite stressful and emotions can run high for the people involved. The following videos discuss how you can calm yourself down in these situations and how you can calm others down.

WATCH

Video 1 - Keeping calm during conflict

Duration: 3:17

Getting upset sometimes is part of being human. When we’re upset, we stop thinking clearly, and may say or do things we regret. In this video, conflict management expert Stephanie Rumble shares five great tips on calming down in a conflict situation.

Video 2 - Calming others in conflict

Duration: 3:19

Knowing how to calm someone down in a conflict situation is a valuable skill. Conflict management expert Stephanie Rumble provides three practical tips in this video.

The purpose of business negotiations is to reach mutually beneficial agreements or resolutions between parties involved in a business transaction, deal, or dispute.

Key purposes of business negotiations include:

• Creating value: Negotiations provide an opportunity to explore interests, priorities, and potential trade-offs to create value for all parties involved. By uncovering shared interests and identifying areas of mutual gain, negotiations can lead to innovative solutions and win-win outcomes.
• Securing favourable terms: Businesses negotiate to secure favourable terms, conditions, or concessions that align with their goals and interests. This may include price negotiations, contract terms, delivery schedules, payment terms, or other elements of the deal.
• Resolving conflicts: Negotiations are often used to resolve conflicts, disagreements, or disputes that arise between parties. By engaging in dialogue, listening to concerns, and seeking common ground, negotiations can help address underlying issues and reach mutually acceptable solutions.
• Building relationships: Successful negotiations contribute to building and maintaining positive relationships with stakeholders, such as customers, suppliers, partners, or competitors. By demonstrating trust, respect, and integrity in negotiations, businesses can strengthen long-term partnerships and collaborations.

Obtaining feedback from key stakeholders has been raised throughout this programme so far. Earlier in this programme we looked at ways to research your target market including surveys, focus groups and one-on-one interviews. We also covered informed consent, the Privacy Act 2020 and the Kaupapa Māori research approach.

Obtaining feedback from key business stakeholders is essential for ensuring that the business’ strategies, projects, and operations align with their needs and expectations. Effective feedback collection helps improve decision-making, enhance performance, and build stronger relationships.

Best practices for obtaining feedback:

• Inclusivity: Ensure a diverse range of stakeholders are included to capture varied perspectives.
• Transparency: Be open about how feedback will be used and the impact it will have.
• Timeliness: Collect and act on feedback promptly to maintain relevance and trust.
• Anonymity: Provide options for anonymous feedback to encourage honesty.
• Appreciation: Thank stakeholders for their time and input and acknowledge their contributions.

Here are seven key steps for obtaining feedback from business stakeholders:

You can also get feedback passively from customers on platforms such as Google Review and Trustpilot, or your own website and social media platforms. Ways to respond to negative customer reviews online are covered later in this module.

Customer satisfaction

Customer satisfaction (CSAT) is a key performance indicator (KPI) raised in the previous module. It is used by businesses to measure the level of satisfaction or happiness that customers experience with a product, service, or overall interaction with the business. CSAT surveys are commonly used to collect feedback from customers by asking them to rate their satisfaction on a numerical scale or provide qualitative feedback about their experience.

CSAT surveys typically ask a single question such as "How satisfied were you with your experience?" or "How would you rate the quality of the product/service?" Customers are then asked to select a response option, often on a scale ranging from "Very dissatisfied" to "Very satisfied" or from 1 to 5, with 1 representing the lowest level of satisfaction and 5 representing the highest.

By monitoring CSAT scores over time, businesses can identify areas for improvement, track trends in customer satisfaction, and take proactive measures to address customer concerns or issues.

360 degree feedback

360 degree feedback is a comprehensive performance evaluation method in which a staff member receives feedback from multiple sources, including supervisors, peers, subordinates, and sometimes even external stakeholders such as customers or suppliers. This approach provides a well-rounded perspective on a staff member’s performance, behaviour, and skills.

This approach can also be used to assess your own performance as a business owner and leader of staff.

Here's how the 360 degree feedback process for leaders typically works:

Summary

In this topic we’ve recapped key business relationships. We’ve explored methods of communication and how to obtain feedback from stakeholders. We’ve also looked at business negotiations and conflict resolution.

We will continue to build on business relationships, communications and feedback throughout this module.