Ineffective collaboration can cost $16k per manager, per year

Many businesses believe that holding frequent meetings is essential for success. However, a recent study has revealed that this approach can be a costly mistake, as it not only drains productivity but also leads to significant final repercussions.

A recent study, Global Collaboration in the Workplace, commissioned by Zoom and carried out by Morning Consult, has indicated that business leaders worldwide encounter significant challenges in effectively managing their time and communication.

The study highlighted how obstacles in communication and collaboration are not just minor inconveniences; they also lead to substantial financial losses for organisations, with the findings revealing that organisations lose approximately $16,000 per manager annually due to ineffective communication and excessive meetings.

To tackle this issue and pinpoint potential areas for improvement, Zoom, in partnership with Morning Consult, surveyed nearly 8,000 leaders and employees across 16 countries, including 750 respondents from Australia. The aim was to explore how applications, tools, and preferred work methods impact collaboration and productivity.

Collaboration burden on leaders

The report’s findings indicated that leaders dedicate a significantly larger portion of their time to collaboration tools, such as meetings and emails, than their teams.

Specifically in Australia, a remarkable 44 per cent of leaders feel they dedicate excessive amounts of time to in-person meetings. Additionally, 46 per cent expressed similar concerns regarding the time spent on emails, while 45 per cent shared this sentiment about virtual meetings.

Leaders operating in a fully remote environment are “hit even harder”, with more than 40 per cent dedicating three or more hours to essential meetings during an average workday.

The cost of ineffective collaboration is a significant concern for leaders, with approximately one-third of Australian team leaders reporting that they spend one hour or more each day addressing collaboration challenges. These challenges often arise from meetings that lack clear objectives and effective communication.

The report highlighted a significant disparity between the challenges leaders and their teams encounter regarding ineffective collaboration. Specifically, it indicated that 40 per cent of Australian team leaders allocate over an hour to resolve misunderstandings within their teams, while this issue concerns only 19 per cent of their employees.

Additionally, the report uncovered that 31 per cent of team leaders regularly check in with their teammates, compared to just 19 per cent of employees.

Addressing these communication and collaboration challenges adversely “drains productivity” among leaders, hence “making it crucial for organisations to streamline communication and workflows – and leaders agree”.

Reassessing meeting dynamics

Although in-person meetings continue to be a prevalent preference, with 41 per cent of leaders and 49 per cent of employees favouring this format due to its capacity to “drive quicker decisions and foster better engagement”, the survey has revealed an inherent paradox.

A significant 56 per cent of leaders believe they could achieve greater productivity by reallocating time spent in meetings to other tasks.

The report recommended using asynchronous collaboration tools, such as “instant messaging, whiteboards, and project management software” to help “create a more balanced approach to collaboration” and “enable members to maximise the potential of their in-person meetings more effectively.

The head of ANZ Zoom, Bede Hackney, said: “By using other collaboration formats, organisations can optimise their in-person meetings, helping to ensure that face-to-face interactions are reserved for critical discussions while routine tasks are handled efficiently. This strategic approach maximises overall productivity and empowers teams to work smarter, not harder.”

The role of AI in enhancing productivity

The report emphasised the need for organisations to adopt a balanced communication strategy that “includes both synchronous and asynchronous platforms” to counteract the challenges presented by ineffective collaboration.

Central to this strategy is the integration of AI, which provides solutions to “common productivity barriers and helps with optimising workflows”.

The report’s data indicated a disparity in AI adoption between leaders and employees. Specifically, 63 per cent of Australian leaders report engaging with AI on a daily basis or several times each week, in contrast to a mere 29 per cent of employees who report similar usage patterns.

Furthermore, 68 per cent of Australian leaders believe AI can enhance productivity, significantly outpacing the 44 per cent of employees who share this belief.

Australian leaders whose teams actively integrate artificial intelligence into their workflows report enhanced productivity gains. Notably, 84 per cent of these leaders indicate that their teams experience increased productivity when utilising AI, which is marginally above the global average of 83 per cent.

“AI is revolutionising productivity for Australian leaders. By seamlessly integrating AI into daily workflows, organisations can significantly reduce miscommunication, allowing leaders to reclaim precious hours lost to inefficient collaboration. This shift not only enhances productivity but also helps drive better outcomes across the board,” Hackney said.