Every firm tries to standardise a few things, values and culture being the most important elements to standardie. Over time the language of the company also tends to get to a few accepted words, phrases which only that company uses. This is popularly known as company jargon.

There are three likely languages used in a company. The first, is what I call the language of the head office. Because senior management orchestrates the company from head office, they come up with unique phrases and language. This becomes the aspirational language of the organisation since everyone wants to use the work and the phrase irrespective of its fit to the situation. Typical examples are: tectonic shifts, thesis, play to win, deep end, back end, coal face, push the envelope etc.

The second language in a company is the language of strategy. This usually appears around annual planning cycles and is quickly forgotten in the annual plan binder in a few weeks. This language asks the right strategic questions.

Where will we play, how will we win? What resources are needed to win? How will this industry look three years out? What advantages do we have? What are the risks to the plan? What is a left field threat etc?

The third and possibly the most important language is one of execution. This language is important because this language has to move the eco system partners and needs to be understood by the larger community driving the execution of the company. This language has to be externally facing and must inspire execution.

Where are we winning, why are we winning, why are we losing? What is our growth versus last month, what is our growth versus last year? Are we growing faster than the market?

Draw a clear line The language in a company should to be monitored closely. The language confusion surfaces because senior managers confuse strategic and operations review questions in meetings. If a company embraces the language of head office or language of strategy, it will always be a ‘dreaming’ company: high on intent and low on delivery. It will always miss the here and now for an ‘ideal’ future that may never arrive. It is important for leaders to stop this language from crossing the strategy review sessions and draw a clear line before the execution organisation starts.

On the other hand, if the company speaks only the execution language, then this company will focus on today’s sales and will be quickly tactics led. Trade promotions, consumer promotions and short term tactics will rule the roost and short term tactics will be rewarded. This is what the market will label a ‘sales company’.

So, what is the real problem of language in the business world? It is a truism that in most industries, strategies are converging and getting commoditised.

The real win is via executing better. However, acceptance of this will put academics and consultants out of business. So, there is an industry which develops new jargon and phrases every year via books, advice and the like. If we look at business over the last fifty years, we see about 50-plus business concepts. The rest of them are pure good sounding words with little impact.

The challenge with using simple words and sentences in a complex world is the danger of being labelled a simpleton who doesn’t understand the new realities. The leader who decides to be simple is a brave one, someone who is swimming against the tide of jargon. There are not too many who embrace this route today.

So, how should companies tackle the issue of language?

Encourage people to talk in a language that their family, such as that their mother, sister and brother understand.

Clarify the meaning of jargon to people in a meeting, lest they go away and use it or apply it the wrong way. In customer meetings and presentations, cut the internal jargon.

Two-way communication All senior leaders should be encouraged to write their own memos and communicate in their tone and vocabulary. This will provide a personal tone and facilitate two-way communication.

The right language in a firm can inspire, can make people give their best. The wrong language can divide, can create distance and create distrust. Language is not about oratory skills, it is about touching people’s emotions to drive their actions in a meaningful way that benefits the company. David Ogilvy, the great advertising guru said it best with this quote : When Aeschines spoke, they said, ‘how well he speaks’. But when Demosthenes spoke, they said, ‘let us march against Philip’.” We need more Demosthenes at work!!

The writer is Chairman, PepsiCo India

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