Lack of "circular" communication within organizations is eventually exposed to the outside world: to customers, to suppliers, and to strategic partners. And it drives them nuts--if not out of business. Companies also lose employees because people don't talk to each other. Period. It's that simple. And that complex.
So what's circular communication? Communication going in all directions. Up the chain. Down the chain. Across departmental lines. From the day shift to the night shift. Feedback from the boss to the staff and vice versa. Conversation with customers.
For the most part, such communication just doesn't happen.
Source: Industry Week, http://industryweek.com