The Hidden Costs of Miscommunication in Leadership

Miscommunication. It’s the silent productivity killer. Many surveys have indicated that companies lose millions annually due to communication breakdowns. Today we’re examining why.

In a nutshell, misunderstandings, assumptions, and a reluctance to address difficult conversations are common culprits that cost teams time, trust, and resources. 

Let’s explore the real impact of miscommunication, what people do with lost time, and what you can do to improve communication as a leader.

The domino effect of misunderstandings

Miscommunication often begins with misunderstandings. Leaders may assume team members comprehend instructions or expectations when, in reality, vital details are lost in translation. Less than half of employees feel certain about what’s expected from them at work. We see this frequently in professional development coaching sessions.

“In most measures since 2021, less than half of employees say they know what is expected of them at work. This concerning decline hit a record low of 44% in late 2022 and remained just above that mark in November (45%).”

(The Great Detachment: Why Employees Feel Stuck, by Ben Wigert and Corey Tatel, Gallup, December 2024)

This disconnect leads to errors, missed deadlines, and frustration. 

Misunderstandings can also snowball, derailing projects. For example, ambiguous feedback might leave employees unclear on how to improve, perpetuating underperformance. Leaders need to commit to clarity, specificity, and timely updates to prevent these pitfalls.

Where does the lost time go? 🤔

When communication breaks down, the resulting inefficiencies can manifest in unproductive activities, such as:

Duplicated work or rework: Employees often redo work because initial instructions were unclear. This wastes time and resources that could have been devoted to innovative efforts.

An endless search for missing information: Teams spend hours trying to find missing details or clarifications instead of progressing with their work.

A source of conflict: Misunderstandings can spark unnecessary disputes that require time-consuming resolutions.

Time un-well spent: Teams may resort to redundant meetings or excessive messaging to avoid further mistakes, inadvertently adding confusion.

Procrastination: Without clear guidance, employees delay tasks due to uncertainty, slowing down progress.

Gossiping, speculating, and unproductive venting: Unclear messaging fosters rumors and assumptions, creating misaligned perceptions and disrupting workflows.

Avoiding difficult conversations: A silent saboteur

A major contributor to miscommunication is the avoidance of tough conversations. Many leaders shy away from addressing sensitive topics due to fear of conflict or discomfort. Yet, ignoring these conversations only worsens the situation. Unresolved issues can fester, leading to resentment, disengagement, and even turnover.

Avoidance doesn’t solve problems; it creates gaps in trust and accountability. Confident leaders must cultivate the courage to tackle these conversations head-on. Setting clear expectations and fostering a culture of feedback ensures that issues are addressed constructively rather than ignored​​.

Start here: Build a culture of effective communication

Here are three places you can start improving communication across the board, giving your team practical tools and directed practice. Building a culture of effective communication means addressing communication everywhere — from leadership teams to managers, all the way through individual employees. 

1. Commit to Clarity

Ensure that instructions and feedback are clear, specific, and actionable. Confirm understanding by asking open-ended questions.

Our team recommends: Dare to Lead
Targeted toward leaders at your organization, Brenè Brown’s Dare to Lead program gives leaders a common language and provides a framework for clearer, more effective communication. Workshops are available in various in-person and virtual formats.

We also recommend: Courageous Feedback
If clarity is missing in feedback across your organization, or managers might be shying away from providing feedback, this half-day workshop will provide practical frameworks for improving their delivery of feedback – while helping them receive feedback more effectively, too.

2. Address the Tough Topics Head-on

Approach difficult conversations with empathy and transparency. Use these moments to build trust rather than avoid conflict​.

Our team recommends: Courageous Conversations

The Courageous Conversations 1:1 coaching program takes a personal approach to understanding different communication styles and putting learning into action, combining Everything DiSC, emotional intelligence, and individual action planning and accountability coaching. Courageous Conversations is an affordable, personalized solution for employees.

3. Foster Active Listening

Take the time to genuinely hear employees’ concerns and perspectives. Reflect back on what you’ve heard to confirm understanding​.

Our team recommends: Active Listening with LEGO® SERIOUS PLAY® 

Active listening requires a lot of practice, so one-way training or courses have limits. Put a fun spin on team training by using LEGO® SERIOUS PLAY® to get conversations started, while practicing active listening actively in pairs. 

👇 Here’s the bottom line

By prioritizing communication, you’re actively working to unlock your team’s full potential. By embracing clarity, courage, and active listening, you can transform communication into a strength rather than a liability.

What are your plans to improve communication in 2025? Let’s talk! Set up a discovery call with our team.