Why Internal Communication Is the Secret to a High Performing Team

In 1999, NASA lost a $125 million Mars orbiter. The cause? A simple yet critical miscommunication. One engineering team used imperial units, while the other used metric. This mismatch led to the spacecraft disintegrating upon entering the Martian atmosphere. It was a small error with massive consequences, all because two teams were not aligned on how to communicate.

Advisory teams may not be launching rockets, but the risks of poor communication are just as real. Misalignment can lead to delayed client responses, compliance breaches, missed opportunities and lost revenue. According to a 2022 McKinsey survey, 77% of senior financial executives reported that poor internal communication contributed directly to negative client outcomes or hindered growth.

Despite the availability of tools and best practices, many advisory teams still rely on scattered updates, unclear processes or informal handoffs. The cost is high. Fortunately, there are proven ways to get everyone on the same page.

Why internal communication matters

1. It keeps everyone coordinated and reduces mistakes

In a busy advisory environment, responsibilities often overlap. Without clear communication, teams may duplicate efforts or miss important tasks altogether. A study published in the Journal of Financial Planning found that advisory teams with structured communication processes reduced portfolio management errors by 25%. Coordination helps prevent costly missteps and maintains client confidence.

2. It creates a better client experience and boosts retention

Clients expect consistency from their advisory team. When internal communication breaks down, they may receive conflicting information or experience delays, which can erode trust. The Financial Planning Association reported that teams with strong internal communication had client satisfaction scores 20% higher than teams with weak communication. Aligned teams deliver a smoother client experience, which drives loyalty and retention.

3. It helps teams make faster, smarter decisions

Financial markets move quickly, so teams need to stay agile. When communication is frequent and clear, decisions can be made more confidently and in real time. A 2024 Financial Planning study showed that teams with daily briefings made portfolio adjustments 30% faster during periods of volatility. This responsiveness helps protect client assets and seize timely opportunities.

Top 3 strategies to strengthen your team’s communication

1. Hold daily or weekly huddles

Brief check-ins keep everyone aligned on client priorities, market developments and pressing tasks. Using a consistent agenda and rotating the facilitator encourages engagement and structure. Research from Financial Planning (2024) found that teams with daily huddles responded 30% faster to market changes and improved team alignment by 25%. These huddles also create space for quick updates and shared problem-solving.

2. Use a centralized CRM System

A Customer Relationship Management (CRM) platform such as Salesforce, Wealthbox or Redtail ensures all team members have access to client records, notes and next steps in real time. This prevents gaps in service and keeps everyone informed. According to a 2023 YCharts report, teams using CRMs reduced client response times by 40% and increased client satisfaction by 15%. A well-managed CRM becomes the single source of truth for your entire team.

3. Leverage real-time collaboration tools

Platforms like Slack or Microsoft Teams streamline communication and reduce email overload. These tools allow for topic-specific channels, quick updates and searchable conversations. A 2021 Harvard Business Review article noted that teams using collaboration tools sent 30% fewer emails and completed tasks 20% faster.

Bringing it all together

Strong internal communication is not just about improving operations. It is a core driver of trust, performance and client satisfaction. Advisory teams that communicate clearly and consistently are better equipped to deliver high-quality service, respond to market changes and maintain regulatory compliance.

The most successful teams do not just talk more; they talk better. Whether through a 10-minute huddle, a well-maintained CRM, or a quick Slack message, small communication habits can lead to big results.

The Mars orbiter was lost over a unit mismatch. Your team does not have to learn the hard way. Prioritize communication and you will build a stronger, more agile and more client-focused advisory practice.

Source:  NASA System Failure Case Studies - "Lost in Translation" - August 2009 Edition, Volume 3, Issue 5