Business Communication: 4 Types of Business Communication

Business communication describes the many tactics and strategies for sharing information among leaders, managers, stakeholders, employees, and team members. A company’s business communication tools might include written communication, such as memos and instant messaging, or even body language and nonverbal communication.

Business communication may involve face-to-face meetings and digital forms of communication, such as email, phone calls, or messaging apps. Business leaders and team leaders can use effective business communication strategies to streamline external and internal business communication and improve decision-making.

A company might use one of the four main types of business communication to share knowledge. Often, these communication methods apply to public speaking, virtual meetings, and many forms of business writing. The four types are:

1. 1. External communication: External communication is any information or messaging for those outside of the company. This might include customers, contractors, vendors and manufacturers, or partner companies. A company's external business communication might include public relations work with journalists or developing customer relationships through marketing.
2. 2. Horizontal communication: Also known as lateral communication, horizontal communication is when information moves among departments with the same hierarchy status in a company. This would include a single team within a larger group communicating with each other to solve a problem or the marketing team meeting to brainstorm.
3. 3. Downward communication: When a company’s leaders send information to direct reports and other employees, they are using downward communication. For example, stakeholders might send out memos or email newsletters to keep employees informed of leadership decisions.
4. 4. Upward communication: When a company’s manager delivers information to a higher-level executive, they are using upward communication. Employees use this method of communication to share knowledge with leaders, which also helps the top-level managers remain informed of employee updates.

A strong business communication strategy can be a large part of a company's success. Strong business communication skills and strategies can:

• Improve customer relationships: Many types of business communication involve speaking to a group of people outside of the company, including customers and clients. Having a strong communication strategy for marketing or public relations can improve customer satisfaction and increase sales.
• Increase employee engagement: When communication in a company is clear and simple, employees can focus their attention on their work. Poor communication can sometimes lead to misunderstandings, confusion, and frustration. Clear methods of communication between different departments can prevent high employee turnover as everyone feels that they are part of the team.
• Streamline the flow of information: Part of a strong communication strategy is establishing communication channels for both downward communication to employees and upward communication to managers and leaders. This can save time and energy for employees to get information out in a reasonable timeframe, resulting in fewer bottlenecks in projects and more opportunities for teamwork.

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