The industry of interest I chose is the health care industry. a I currently work as a member of HR in a
healthcare facility. Side conversations in a medical facility can be very helpful to move forward with
creating better pay and positions creating a competitive advantage. I have seen executive members
talk with each other about department turnover and how competitive market wages are important.
Then they have come together as a team to determine the wages of our facility, the current market
and what we process we need to make sure current employees and new employees have fair
compensation with inflation. a This has a positive impact internally and external by ensuring that we
keep just above the market but do not let the current employees fall behind new hires.
Side conversation can hurt our facility when executives talk about changing the nursing work
schedule structure and then do it without a plan or explanation to the nursing staff on how the
new process works. a This has a negative impact as it causes confusion and frustration. a The negative
impact can create turnover and impact patients by not having adequate staff for care. This can also
have a negative financial impact for stakeholders.
The first industry that came to mind following the completion of the reading was the
pharmaceutical industry. The reason for this is due to the large amount of input that is required to
bring a drug from an idea into an actual product which to me would indicate that complete
transparency would be required for prolonged success. Side conversations could be a great way to
share information with one another as people, especially board members, are often very busy. The
use of side conversations will allow for communication that may not happen otherwise due to the
busy schedules (Gardner et Al. 2019). These conversations would also be helpful when it comes to
sensitive material which could be related to political or legal situations that arise (Gardner et Al.
2019). However, conversely negative impact is also possible and could even be ethically wrong.
Having a side conversation may create a bias that ultimately could result in a release too soon due
to discussion that doesn't include a subject matter expert and is more about the monetary value
than that of helping people. Pricing is another area of concern which can be seen in the price
gouging seen in EpiPen prices in the United States. This can then impact both internal and external
stakeholders as they may not agree with the actions of the company leading to attrition or a lack of
funding. A negative impact of side conversations can also lead to a lack of trust among stakeholders
which can cause a poor working environment and lack of production. This can also go as far as
damaging the way customers see the company.
My favourite industry to work in was construction and development. a This industry relies heavily on
communication. “Project management walks a tightrope to ensure that a project runs successfully
from kick-off to turnover. This takes an immense amount of project planning and effective
communication” (Ludwig, 2018)
We had weekly meetings during the design and building phase. a It usually included the architects,
designers, scheduler, project manager, project engineer, on site supervisor, and project accountant. a
Side conversations worked well if they were tasked by the project manager and the parties involved
would need to report back at the next weekly meeting. a These mostly involved conflicts. a One
example I remember was during the second phase of the apartments we were building. The onsite
supervisor requested the designer only pick out lighting that could use the same lightbulbs from
the first phase because, ‘We have an entire storage closet dedicated to light bulbs due to the
numerous types of light fixtures from phase one. a This leads to a high operations lightbulb budget’. a
This was not something the project manager wanted to drag out during the weekly meeting, so he
told them to talk it out and report back. a It made the meeting more productive. “Project teams with
the ability to run effective, lean meetings with clear goals will be in a strong position to produce a
successful project” (Ludwig, 2018)
A negative way for the side conversations within construction were if changes were made without
communicating them to the right people. a This can throw the schedule off, and even affect the
budget. a Let us say the scheduler was not told about an agreement between the project manager,
project engineer and the one site supervisor to move up the drywall installation because the
company they preferred was only available during a certain week. Leaving the scheduler out of the
conversation means the drywall supply order was not expedited, other trades were not notified,
and the schedule was not adjusted. a The electricians and plumbers were still installing wiring and
piping and the drywallers could not do the work. a It then pushed the schedule back because the
drywall company could not work when the scheduler originally planned. a “An overrun in schedule is
detrimental to the project budget. There are often liquidated damage clauses in contracts that act
as compensation to the owner for late delivery” (Ludwig, 2018). a Delays created a domino effect for
any work after drywall installation. a This can increase the expenses and go over budget.
Internal and external stakeholders are affected by side conversations. a If the side conversations are
practiced properly, the internal employees have an easier job because information is provided in a
timely manner. a Executives will be happy because projects will be more likely to stay within budget
and be on time. a External supplier and vendors will have a positive experience with the company
and will want to do business again. a Investors will be happy if the company utilizes side
conversation effectively because they could receive a higher return. a The construction and
development industry relies heavily on lending. a Lenders would benefit from timely payments and a
trust will build for future borrowing.
If negative side conservations happen, then the culture of the company can be affected. a Those
involved in the project will have a difficult time in doing their job properly and get frustrated which
may result in employee turnover. Vendors and suppliers may not want to do business in the future.
This will leave the construction company with a smaller number of options within the different
trades to do business with. a This can result in lower quality performed by a newer less experienced
trade vendor. a Lenders may cut off funding leaving a project incomplete and trades not getting paid
for the work they did so they place liens on the property.
References
Gardner, H. K., & Peterson, R. S. (2019). Back Channels in the Boardroom. Harvard Business Review,
97(5), 106–113.
Ludwig, R. (2018). Meetings Critical to Construction Project Success and Best Practices.
Digitalcommons.calpoly.edu.
https://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1241&context=cmsp
