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How to Calculate the Value of Organizational Communication

© Jorge Royan / http://www.royan.com.ar / CC-BY-SA-3.0

© Jorge Royan / http://www.royan.com.ar / CC-BY-SA-3.0

Communicators know that effective communication delivers value to business in many tangible ways, but how can you show this value in a quantifiable way that is easy to understand?

Lorenzo Sierra of LoSierra Strategic Consulting, lorenzo@losierra.com, created a solution to this dilemma:

V=(c+e)p

That is, the value of communication is equal to the costs plus the efforts of what you’re communicating to the power of perception.

This equation is further explained in the attached article from the June/July 2003 edition of IABC’s Communication World. Sierra’s Theory of Communicativity_IABC CW

This concept was also applied to calculating the value of total rewards communication as detailed in the attached article from WorldatWork’s 2004 edition of Workspan. Lorenzo Sierra_Workspan_0204

How can this equation be applied to show the value of communication at your organization?

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