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Communication Audit:

“The Busted Knuckle Garage”

Prepared by

Wendy Tollefsen

Gonzaga University

December 15, 2009

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Executive Summary

The purpose of this audit was to uncover weak internal and external

communication links, identify strengths, explore areas of opportunities, and recommend

strategies toward general improvement over the internal and external communication

manners and practices of The Busted Knuckle Garage (BKG) organization. Two audit

methods were used to achieve the objectives, face-to-face interviews and an audit diary.

The audit diary includes internal and external communication systems, observations of

the work environment, the physical features of the building, the layout of the product

display area, the open concept workstations, the warehouse, and CEO’s office. The

employee’s attire and casual appearance reinforce the BKG informal communication

practices and reiterates the general laid-back feelings about the organization.

The Busted Knuckle Garage maintains six different websites as part of its external

communication strategies. Two are developed to promote products and future licensees

(retail storefront, business to business), and four different social networking sights

(Facebook, MySpace, Twitter and YouTube) to increase visibility and internet traffic for

the retail and licensee markets. Three independent website contractors deal directly and

only with the CEO to maintain the technical and support systems for these internet sites.

This audit does not include interviews with the independent contractors (I found out late

in the audit process about the actual presence of the three different administrators of these

sites), but does address the external communication practices and strategies in the staff

interviews and audit diary.

The results of the staff interviews and walk-around (audit diary) revealed a high

level of communication satisfaction between the CEO Warren Tracy and the BKG staff,

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which consists of two female part-time employees and one full time female employee.

All agreed that at the Busted Knuckle a general sense of informality and flexibility

readily defined the communication and leadership style. While the staff expressed

enthusiasm for the small size, honesty, and open direct communication style during the

face-to-face interviews, the verbatim responses revealed a deeper concern toward the lack

of a formal internal communication structure. The staff individually mentioned the need

for scheduled staff meetings to help meet information dissemination and communication

flow between the full time staff, (Tracy and the warehouse manager) and the two part

time employees.

The audit also includes a brief assessment of the technology currently being used

at the Busted Knuckle with special attention to the purchase of two-way radios acquired

to expedite internal communication between the warehouse employee and Tracy.

A summary page with simple suggestions directed at enriching the existing

communication methods and implementation strategies for elevating the internal and

external communication structures concludes the Busted Knuckle Garage’s

communication audit.

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Table of Contents

Executive Summary…………………………………………………………………….. 2 Purpose of BKG Organizational Communication Audit………………………………...5 Background of BKG………………………………………………………......................6 The Communication Audit Methodology….......................................................................................................7 Audit Diary…........................................................................................................ 7 Interview introduction…….....................................................................................9 External communication………………………………………………………….9 Overview………………………………………………………………………….9 Strengths…………………………………………………………………………10 Areas for Opportunities………………………………………………………….10 Recommendations……………………………………………………………….11 Internal communication………………………………………………………….12 Overview…………………………………………………………………………12 Strengths…………………………………………………………………………13 Areas for Opportunities………………………………………………………….13 Recommendations………………………………………………………………..14 Technology Assessment…................................................................................................ 14 Summary………………………..………………………………………………………. 14 References………………………………………………………………………………. 16

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Purpose of the BKG Organizational Communication Audit

Constructing a successful business model begins by utilizing strategies that

incorporate the essential cornerstones of an efficient and productive communication

practice. The assistance of an organizational communication audit furthers an objective

understanding between the internal and external communication styles of the corporation

and represents the diverse communication practices of the workers within the

organization.

At The Busted Knuckle Garage, a contingency of only four requires extra

assistance with special attention geared at actively regarding the verbal and non-verbal

cues of internal and external communication. A simple misstep could lead to the

unraveling of a carefully constructed system of checks and balances, flow of information

and agreed upon set of rules that manage the work logic.

* Objectives:

Identify weak links in the communication flow

Identify productive communication practices

Explore areas of opportunities to improve communication methods

Recommend strategies to increase communication productivity

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Background of BKG The idea (logo) of the Busted Knuckle Garage (BKG) began in a dream. The

image of an index finger wrapped in a red kerchief holding a wrench transformed a set of

fuzzy sketches drawn in the middle of the night at the bottom of the Grand Canyon 13

years ago, into the modern day business dream come true for Warren Tracy the owner

and man behind the successful BKG brand.

When Tracy worked at the bottom of the Grand Canyon and managed Phantom

Ranch (a popular and busy rest stop for hikers, mule riders, and rafters) the opportunities

for privacy and introspection were limited. Tracy made up for those opportunities each

time he had to hike three hours out of the canyon to enjoy days off. Tracy had a lot of

down time on the Kaibab trail, time to think about life, work, and starting a business.

Tracy recalls, “Sure the scenery was breathtaking, and I enjoyed the hike, but it also

provided me a great deal of time to process my dreams and work through the necessary

details to start my own business.”

In 1997, Tracy designed a wooden sign with the BKG logo and advertised it in an

automotive magazine. That started the ball rolling. Tracy quit his Phantom Ranch

managerial job (10 years) and focused his monies and attention on developing the BKG

brand. In 2005, The Busted Knuckle Garage moved out of Tracy’s garage and into an

actual warehouse.

The Busted Knuckle Garage has grown from a single wooden sign into 250 items

that range from clothing, automotive/garage, home décor, gifts, collectibles and skin care

products and supports an international market base that includes distributors, vendors,

and customers on five continents.

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The Busted Knuckle Garage employs a workforce of three. The V.P of Sales &

Marketing and the Finance Director both work two days a week. The third employee

works full-time and manages the warehouse. The importance of establishing an effective

set of communication strategies becomes essential for the continued success of this small

and flourishing business. Any communicative monkey wrench (lack of information,

authority, or assumptions, any overlay of job responsibilities) thrown into the procedural

flow increases the proclivity of an information bottleneck that has the potential to stunt

efficiency, productivity, and profits.

Methodology

The audit consists of two forms of collected information and examination that

appraises the internal and external communication practices of the BKG organization,

face-to-face interviews, and a walk-around audit diary. Assessment of the external

strategies used by the BKG include the communication methods to promote the business

in the form of product information, business cards, press releases, and a review of the

business, retail, and social networking websites.

Audit Diary

In preparation for the audit, I approached the employees and CEO, Warren Tracy

at the BKG warehouse. Upon arrival, I immediately noticed the open layout and colorful

décor. The display area encouraged any potential customer to browse the product line and

pick up a brochure about the business. Each display carried a product description, and

BKG logo embossed with the website address.

The building is approx 2000sq.ft. The warehouse and office space respectfully

share the building. The office space includes the display area, and two desks that sit in an

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open concept workstation. Tracy’s office is private but fairly close to the workstations.

Two double doors that remain closed (heat retention) separate the warehouse from the

office, display area and Tracy’s private office.

The employee’s attire reflects the style and tone of the BKG organization,

relaxed, casual, and friendly. Employee’s are given samples from the product line and are

encouraged to wear the BKG embroidered t-shirts, sweatshirts or caps. The staff on

occasion wears the samples both privately and professionally. No policy exists that

mandates a particular dress code for or against wearing BKG clothing on the job.

* External Communication

The workspace and display area convey simple and direct information about

BKG. The product catalogue, business cards, and various gear head automotive

magazines pepper the display section, which imparts the feel good mission statement of

the BKG by allowing the customer to personally “define” The Busted Knuckle Garage

experience. The external image of the organization reflects the comfortable, as you like it

attitude and encourages a potential customer or business partner to identify with the non-

verbal communications cues of flexibility, casual, informality and approachability that

represents the BKG organizational style.

* Internal Communication

The staff enjoys candid, direct, friendly, and informal conversation. The open

workspace promotes visibility, easy access to the display area and a general unobstructed

communication flow. Tracy’s office remains separate from the general work area, but his

door remains open unless circumstance dictates privacy (customers, business meetings,

etc.) The warehouse manager and Tracy communicate by two-way radio when necessary

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due to the physical separation of their work areas. Communication flows horizontally,

bypassing unnecessary conduits in order to complete job tasks.

Interview Introduction

The interviews took place over a period of five days. Three occurred at the BKG

office and the third was offsite. The questions ranged from identifying strengths,

weaknesses and descriptions about the structure and flow of the internal and external

communication methods, responsibility, job accountability, and defining communication

policy. The respondents were candid, frank and showed a sincere willingness to

participate in the interview process.

External Communication

Overview

Since The Busted Knuckle Garage primarily sells retail products, most external

communication happens between the vendors, distributors, customers, suppliers, and

business associations that promote small business. Depending upon the job position, each

employee communicates directly with one or more of the above-mentioned parties. For

example, the V.P. of sales and marketing would be the conduit or link between the

suppliers, distributors, and vendors accumulating information necessary to establish

orders, provide advertisements, media packages, and press releases. The warehouse

manager translates the purchase orders into shipments, processes the orders, ships the

product, and returns the invoice to the Finance Director who completes the transaction by

collecting the money and paying the responsible parties. The CEO occupies the central

position within the communication flow chart by disseminating information to the

different departments. The employees use informal methods of communication relying

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heavily upon use of the telephone and email. Fax machines are used to receive incoming

orders and transfer of documents. One area of frustration concerns the overwhelming

amount of time spent on fielding phone traffic. Most questions are directed toward the

CEO. Unable to answer the questions, the employee responsible for answering the phone

loses valuable work time, (especially the warehouse manager) which translates into

inefficiency and profit loss. This situation also slows down productivity, and creates a

sense of irritability among the staff.

All employees exhibited knowledge of their roles and the external

communication methods supported by the organization. The role of the BKG websites as

an external communication strategy promotes product visibility, sales, and business

opportunities. Tracy maintains the informal and formal flow of communication traffic

between staff and the independent website contractors.

Strengths

The employees regard their jobs with high esteem and take pride in being able to

work quickly, efficiently and with respect to the duties and details of the other staff

members. Though each job has duty specific responsibilities, on occasion (not packing,

nobody wants to do this!) the V.P. will create purchase orders (responsibility of the

finance director, and the CEO) to help alleviate the workload of the finance director and

Tracy. The team effort exemplifies the spirit and dedication of the BKG staff.

Areas for Opportunities

Continue working as a team with consideration for expanding employee

participation as means to increase product promotion. The websites generate 30% sales,

while the wholesalers and drop ship organizations (i.e. Mac Tools) pick up 60% product

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movement, with the remaining 10 % coming from various external sources. Tracy speaks

of external communication opportunities like this, “We are not loud enough on the

internet, not big enough.” Creating an innovate campaign to raise awareness of the BKG

product line on the internet (videos, personal testimonies, pictures, contest, etc.) or a

competition that entices the employees to break out their creative thinking caps and make

some noise on the internet and social networking sites.

Recommendations

The following recommendations are based upon the information received during

the interviews:

*Implement a mailbox system that directs phone traffic to the appropriate

department.

*Develop a marketing budget to increase sales and visibility

*Allow the warehouse manager computer access to the BKG retail website in

order to update availability (daily) of warehouse stock.

Internal Communication

Overview

One opinion stands unified among the employees at The Busted Knuckle Garage,

the intimate size of the organization. Direct, open, and friendly conversation keeps the

internal communication process informal. Tracy’s relational and transformational

leadership style promotes innovation, initiative, and strays from micromanaging the staff.

Each employee is expected to understand their specific job duties, ask questions when

unsure, and keep thinking outside the box. That being said, the importance of keeping all

employees in the loop challenges the informal internal communication structure of the

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BKG organization. The V.P. of sales and the finance director work two days a week often

on opposing days. Tracy and the warehouse manager speak on a daily basis. Information

slides through the cracks, which reverberates in miscommunication on purchase orders,

invoices, and product shipments. For example, one day the V.P. created a purchase order

(incorrectly) for one of BKG’s largest drop ship clients. Long story short, fixing the

wrong purchase order number created a bottleneck in the work process. Both the

warehouse manager and finance director stopped working and had to search for the

correct information without the presence or input of the V.P. The backtracking process

took approx. 35 minutes. Multiply this scenario by three times a week and do the cost-

profit loss ratio.

A large whiteboard hangs on the back wall of the work stations. Its purpose, to

convey information about work, scheduled employee days off, up coming events and

inspirational quotes. This method of disseminating information between staff members

would be more effective if the information stayed current. The finance director says she

hardly looks at it, mostly because the information is irrelevant to her job duties and

because it does not change. That sentiment (other than the CEO) seems universal.

The employees enjoy a relaxed communication atmosphere, speak openly with

each other, and address their concerns and issues without fear or repercussions from the

CEO.

Strengths

The small stature of the operation, close working proximity of the staff, and

general good feelings about their position within The Busted Knuckle Garage

organization keep the flow of information exchange natural and positive. Employees

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create a sense of familiarity through increased visibility and exposure to each other. The

fact that the workstations create an open feeling enhances the informal internal

communication patterns. Approachable, small size and strong loyalty to the organization

provide an open conduit for information exchange.

Areas for Opportunities

Balance the information flow between the part-time and full-time employees.

Track information movement by assessing need, prominence, and departmental

capacities. If the warehouse needs clarification on an order, or the finance director needs

specific details on an invoice the CEO and staff might combine creative efforts to find a

solution by utilizing the expertise of the different department heads. The simple axiom,

“two heads are better than one” might inspire alternative thinking within the small

community of BKG employees.

Recommendations

The following recommendations are based upon the information received during

the interviews:

*Schedule staff meetings at least once a month. The importance of disseminating

information between full-time and part-time employees cannot be underestimated

in terms of personal value (trust building), work productivity, efficiency and last

but not least, paramount in keeping operations from bottlenecking.

*Keep the Whiteboard updated and current. Utilize the proximity and visibility

of the space to encourage information exchange and communication flow.

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Technology Assessment

The Busted Knuckle Garage uses all forms of technology, email, fax machines,

and telephones. The purpose of this assessment was to address the communication efforts

between the warehouse and the CEO’s office. The reasoning behind the purchase of the

two-way radios was to expedite information exchange between the warehouse and

Tracy’s office. Upon further evaluation, the warehouse manager revealed that the radios

did not fulfill the purpose they were first intended to provide. While Tracy thought the

idea novel (he picked up the small device during our interview and said, “Cool”) the

warehouse manager exhibited frustration. Most of the time the radios were not turned on,

or forgotten about, once again increasing the futility of implementing the technology.

By implementing a phone mailbox system that redirects incoming calls to the

appropriate department, the need for the two-way radios might be resolved.

Summary

Communication strategies reviewed throughout the audit have revealed the

strengths and weaknesses of the communication practices within The Busted Knuckle

Garage organization. The informal and relaxed style of BKG employees and the CEO

create a flexible, open, and direct work environment. Lack of current information for the

part-time employees, updates on the whiteboard and employee overlapping job

responsibilities all contribute to communication bottleneck, confusion, and loss of

productivity.

Implementing communication suggestions like staff meetings, creative incentive

programs, a mailbox phone system, access to the external websites (warehouse manager)

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and an updated whiteboard will increase the team building spirit, keep employees in the

information loop, increase productivity, profit, and well-being.

Tracy says, “I’m just the head wrench, they (staff) make the motor run.”

Gear head inventory ready to ship

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References

Conrad, C., and Poole, M., (2005). Strategic Organizational Communication in a Global

Economy. (6th ed). Belmont, CA: Thomson Wadsworth.

Courtland, L., Bovee, and Thill, John, V., (2000). Business Communication Today.

(6thed). New Jersey: Prentice-Hall

Hamilton, S., (1987). A Communication Audit Handbook-helping organizations

communicate. White Plains, NY: Longman Inc.