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70% of Business Inefficiencies Are Caused by Poor Internal Communication

70% of Business Inefficiencies Are Caused by Poor Internal Communication

May 26, 20255 min read

Effective internal communication is the lifeblood of any regulated organisation. When it fails, the consequences are not just operational delays or team frustration—they extend to compliance breaches, failed audits, product recalls, and reputational damage. At Quality Systems Now, we consistently observe that poor internal communication is a primary root cause behind the majority of quality and compliance issues in therapeutic goods manufacturing, biotechnology companies, and testing laboratories.

It is estimated that 70% of business inefficiencies originate from poor internal communication. This staggering figure underscores the urgent need for organisations to move beyond informal fixes and instead build structured, auditable, and risk-based communication frameworks. In this article, we explore how miscommunication manifests in regulated environments, why it poses such a significant risk, and what practical strategies can mitigate it.

The Hidden Cost of Poor Communication

Communication inefficiencies can be subtle in daily operations, but they often create compounding risks over time. For example, a QA team unaware of a process change implemented by Production may delay deviation investigation or approve a non-compliant batch record. Similarly, Engineering might perform equipment maintenance without involving Validation, jeopardising the integrity of the system.

The cost of these issues is multifold:

  • Increased deviations due to misunderstood SOPs or process gaps

  • Audit observations stemming from unclear documentation or conflicting records

  • Delays in product release caused by missing or inconsistent data

  • Misaligned objectives between cross-functional departments

  • Low employee morale driven by confusion, blame, and reactive management

These outcomes are not the result of individual failures but rather systemic communication breakdowns. In highly regulated industries, where every activity must be traceable and justified, such breakdowns translate directly into business inefficiencies and non-compliance.

Communication Silos: A Regulatory Risk Factor

Internal communication does not exist in a vacuum. It is shaped by how departments interact, how information is shared, and how decisions are made. In siloed environments, teams often operate under different assumptions, metrics, and terminologies. This disconnect can cause misinterpretation of quality requirements, lack of coordination during validation or batch release, and inconsistent handling of CAPAs.

For instance, a regulatory affairs team may interpret a guidance update one way, while Quality Assurance fails to cascade the change into the QMS. The result is a misalignment that exposes the company during an inspection.

Regulators such as the Therapeutic Goods Administration (TGA) increasingly scrutinise communication structures during audits. The presence of conflicting records, delayed CAPA implementation, or inconsistent training are red flags that point to internal miscommunication. These are avoidable risks—if communication systems are designed for compliance.

Real-World Examples of Communication Failures

At Quality Systems Now, we have worked with numerous Australian manufacturers and laboratories to identify and remediate communication breakdowns. Some of the most common examples include:

  • Unclear SOP ownership: When multiple departments assume different parties are responsible, updates are delayed or overlooked.

  • Missed validation windows: When Engineering or IT systems implement changes without informing QA or RA, critical validations are either skipped or backdated.

  • Delayed product recalls: Due to fragmented reporting pathways, customer complaints are not escalated promptly to decision-makers.

  • Conflicting batch data: Resulting from disconnected QC and Production teams entering or interpreting data inconsistently.

In each of these cases, the underlying issue was not technical capability but the absence of a structured internal communication framework.

Scientific Foundations for Effective Communication

Effective communication within regulated environments must be systematic, standardised, and traceable. At Quality Systems Now, we advocate for evidence-based tools that embed communication into the core of quality systems. These include:

  • Cross-functional communication matrices: Define who communicates with whom, about what, and through which channels—based on process criticality.

  • Structured meeting cadences: Include Quality Council meetings, deviation triage groups, and cross-department change control reviews to ensure visibility and shared ownership.

  • Integrated Quality Management Systems (QMS): Where deviations, changes, training, and documentation flow through a centralised, accessible system with alerts and audit trails.

  • Communication KPIs: Monitor metrics such as deviation closure time, CAPA effectiveness, and SOP review frequency to gauge communication health.

These tools enable organisations to move from reactive communication to proactive, risk-based dialogue across departments.

Building a Culture of Communication

While systems and tools are critical, sustainable improvement requires a culture of open communication. This means empowering employees to raise concerns, ask questions, and clarify expectations without fear of blame or reprisal.

To build this culture, organisations should:

  • Train all levels of staff on communication competencies specific to GMP and regulatory contexts

  • Encourage cross-functional workshops to bridge terminology and process gaps

  • Recognise and reward team collaboration that contributes to compliance and efficiency

  • Appoint communication champions in each department to model best practices

At Quality Systems Now, we have observed that culture change begins when leaders model transparency, invite input, and invest in systems that facilitate rather than hinder communication.

Quantifying the Benefits of Strong Communication

When internal communication is improved, the benefits go beyond compliance—they include measurable business outcomes. For example:

  • Faster deviation investigations: With aligned stakeholders and immediate access to information

  • Improved audit performance: Due to consistent documentation and coordinated responses

  • Reduced training time: With clear, role-specific instructions that reduce rework and misinterpretation

  • Higher staff retention: As teams feel informed, involved, and supported

In one Queensland-based manufacturer we supported, implementation of a unified QMS with structured communication pathways reduced their average deviation closure time by 35% and led to zero critical findings in their next TGA inspection.

Join Our Webinar Series

If your organisation is facing operational delays, repeated audit findings, or staff frustration, chances are poor communication is at the root. We invite you to attend our upcoming webinars to explore how structured communication systems can reduce inefficiencies, increase compliance, and enhance organisational resilience.

Reserve your seat for “Breaking Silos”, running tomorrow: https://qualitysystemsnow.com.au/webinar-breaking-silos

Conclusion

Poor internal communication is not just a nuisance—it is a systemic failure that undermines quality, compliance, and efficiency. In GMP-regulated environments, where precision, accountability, and traceability are essential, communication cannot be left to chance.

With over 70% of inefficiencies linked to communication gaps, addressing this issue is a strategic imperative. At Quality Systems Now, we support regulated organisations across Australia to build the systems, culture, and capabilities necessary for effective internal communication.

Don’t let silos and silence slow your teams or jeopardise your compliance. Start building communication into your quality system today.

Breaking Silos Webinar
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