What Is Business Communication? Definition, Importance & How To Improve It

Communication should move business forward – yet for many teams, it does the opposite.

This guide explores what business communication really is, why it’s essential to organisational success, and how you can improve it in practical, measurable ways.

At Body Talk, we’ve worked with over 100 corporate clients, including FTSE 100 and Fortune 500 companies, transforming how their teams communicate. What you’ll read here is grounded in what we’ve seen work – strategies used by global teams to make communication stronger across every level of their business.

Key Takeaways:

• Business communication drives performance, when it’s strong, teams move faster and make better decisions.
• Clear communication boosts productivity, reduces mistakes, and keeps everyone aligned.
• Trust, engagement, and culture all grow when communication is honest, consistent, and human.
• Great leaders communicate with clarity and empathy, it’s a core leadership skill, not a soft one.
• The best organisations use intentional communication: active listening, clear feedback, storytelling, and emotional intelligence.
• You can strengthen communication quickly by choosing the right channels, improving clarity, and practising stronger non-verbal skills.

What is business communication?

Business communication is how ideas move. It’s the exchange of information that keeps people aligned, work flowing, and goals on track. Every meeting, email, and conversation shapes how effectively a business performs.

What makes it different from everyday communication is purpose. In business, you’re not just talking – you’re coordinating decisions, solving problems, and driving outcomes.

Why business communication matters in today’s workplace

Behind every successful business is a simple truth: people who understand each other, work better together. When communication fails, so does efficiency, trust, and momentum.

If you’d like to explore the deeper reasons communication impacts performance so strongly, our guide on why communication is important breaks this down clearly

A 2022 study published in the Journal of Accounting, Business and Finance Research found that excellent communication is a defining factor in global business success. Companies that exchange information regularly, share common goals, and bridge language or cultural gaps achieve stronger relationships and measurable financial gains.

In other words, clear and consistent communication doesn’t just make collaboration easier – it makes it profitable.

Essential business communication skills

The study found that organisational culture, shared values, and leadership style are all positively linked to how effectively people communicate at work. Meaning communication doesn’t improve by chance – it’s built through specific behaviours.

So, what does that look like in practice? Below are the key skills that drive these foundations.

For a strong organisational culture, focus on:

• Giving feedback
  Open feedback keeps teams aligned. It allows people to raise issues early, find solutions quickly, and maintain trust even when opinions differ. Leaders who model honest but respectful feedback set the standard for the rest of the business. It’s what turns difficult conversations into progress.
• Active listening:
  Listening well is one of the simplest ways to strengthen culture. When people listen to understand – not just to reply – they make better decisions and avoid misunderstandings that waste time and energy. It also shows respect. When employees feel heard, they’re more engaged, and collaboration naturally improves.

To encourage shared values, focus on:

• Clear communication:
  People can’t follow what they don’t understand. When leaders express company values in plain language – free from jargon or abstraction – it gives everyone a clear standard to act on. It also makes accountability easier, because expectations are visible and shared.
• Business storytelling:
  Stories give values life. A short, real example, like a client challenge handled with integrity, or a team pulling together under pressure, helps people see what those values look like in practice.

For an effective leadership style, focus on:

• Assertive communication:
  Assertiveness is about balance. It’s the ability to express your ideas and expectations clearly without shutting others down. Assertive leaders don’t rely on authority or avoidance – they build understanding through honesty and respect. We explore this further in our blog on assertive communication, where we look at how it’s been researched within leadership and why it consistently drives better outcomes in the workplace.
• Emotional intelligence and empathy:
  Emotional intelligence is the ability to recognise and manage emotion. It allows leaders to stay composed in conflict, read what’s happening beneath the surface, and respond appropriately. As psychologist and leading researcher on emotional intelligence Daniel Goleman explained in Harvard Business Review:“The most effective leaders are all alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence. It’s not that IQ and technical skills are irrelevant. They do matter, but… they are the entry-level requirements for executive positions.”

If you want a deeper breakdown of the core skills behind strong business communication, our Communication Skills Guide is a great next step.

Types of business communication

Every organisation relies on communication to function, but the direction information flows can completely change the way it’s delivered.

Upward communication

This is communication that flows from employees to management. It includes feedback, progress updates, or new business ideas shared from the front line of a business.

Upward communication gives leaders insight into what’s really happening – how strategies are landing, where challenges exist, and what support teams need. When organisations encourage it, they make smarter decisions and build trust by showing that every voice counts.

Downward communication

Downward communication moves from management to employees. It’s how leaders share expectations, updates, and company goals.

Effective downward communication uses plain language and explains not just what needs to happen, but why it matters. That context helps employees stay motivated and aligned with the bigger picture.

You should also ensure your downward communication builds confidence, whether it’s through how you present in company updates, the way you share progress, or how you address concerns when change creates uncertainty.

Lateral (horizontal) communication

This happens between people or teams at the same level of an organisation – for example, between departments or project groups. Strong horizontal communication speeds up problem-solving and helps teams stay coordinated.

When lateral communication is working well, people speak up when they need to and ask for clarification without hesitation.

Key methods of business communication

The way you communicate – verbally, digitally, in writing or through images – influences how people interpret your message. Here’s how to use each method effectively.

• Verbal communication:
  Verbal communication happens in meetings, one-to-ones, and presentations – anywhere you speak directly to others. A confident tone, steady pace, and clear structure make your message easy to follow. Strong speakers also check understanding and pause to listen, showing they value input.
• Digital communication:
  Online meetings now make up a large part of how teams connect. The best digital communicators make the experience feel as human as possible, maintaining eye contact with the camera, using a natural tone, and keeping discussions focused. They also recognise that virtual meetings take more mental energy than face-to-face ones, so shorter, structured sessions often work best.
• Visual communication:
  Visuals make complex information easier to understand and remember. Whether you’re presenting data, ideas, or strategy, visual tools like slides or infographics can bring clarity and focus. The goal is to complement what you’re saying – not to compete with it
• Written communication:
  Written communication takes many forms, from presentation slides and reports to follow-up emails and meeting notes. It’s your chance to clarify, confirm, and reinforce what’s been discussed verbally.

The role of nonverbal communication in business

Think back to a time when you trusted a presenter or colleague. What made you feel that way? It was likely a combination of their words and how they delivered them – calm energy, steady tone, and a sense that they meant what they said. Those are the moments that turn communication into connection.

A steady posture, open gestures, and genuine facial expressions help people feel at ease and engaged. The opposite can also be true: crossed arms, a flat tone, or lack of eye contact can signal defensiveness or uncertainty, even if your words are positive.

How to overcome the most common barriers to business communication

Even the best communicators face barriers that can get in the way of understanding. Here are some of the most common, and how to overcome them.

• Emotional barriers
  Frustration, tension, or difficulty working with another person can result in poor communication. Developing conflict resolution skills helps you address disagreements calmly and constructively, keeping relationships intact and progress on track.
• Psychological barriers
  A lack of confidence can make it hard to express ideas clearly or speak up in groups. But confidence isn’t something you’re born with – it’s something you can learn. With the right techniques and practice, anyone can build confidence in how they communicate.

If you recognise any of these challenges, don’t let them hold your team back. Read our Barriers to Communication blog to uncover practical ways to overcome them and remove the hidden blockers stopping your organisation from performing at its best.

How to implement effective business communication

Creating a culture of strong communication takes intention – and practice. Here’s how to make it part of your organisation’s everyday success.

Know your audience and tailor your message to what they care about

Effective communication isn’t about what you want to say; it’s about what they need to hear. Whether you’re speaking to clients, colleagues, or senior leaders, focus on relevance.

What do they value most? What problem are you helping them solve? When you frame your message around their priorities, you capture attention and inspire action.

Empower your team with communication skills training

Transform how your teams connect, present, and lead with science-backed tools from Body Talk.

Our expert coaches deliver high-energy sessions worldwide. With backgrounds in broadcasting, television, theatre, and journalism, they bring deep expertise in body language, voice, presence, and storytelling to help every participant communicate at their best.

Choose the format that fits your goals:

• In-person workshops – Immersive, high-energy sessions that can take place anywhere in the world.
• Guided virtual learning – Three focused sessions with a Body Talk coach.
• E-learning – Flexible, on-demand lessons built around busy schedules.

Explore Body Talk’s communication training courses and start transforming the way your organisation communicates today.

Frequently asked questions

We’ve answered some common questions on what good business communication looks like below.

What does effective internal communication look like?

Effective internal communication keeps everyone informed, aligned, and motivated. The business communication process should enable ideas to flow freely between teams, using the right communication methods for the moment, whether that’s face-to-face conversations, quick digital check-ins, or company-wide meetings.

Strong workplace communication helps everyone pull in the same direction. When it’s done well, people don’t just hear information – they understand how their work fits into the bigger picture.

What does effective external communication look like?

External business communication is how your organisation connects with external stakeholders and the public. It’s the difference between being understood and being remembered. A strong business communication strategy focuses on clarity, consistency, and tone – from client pitches and sales calls to large-scale presentations.

Developing your team’s presentation skills helps you represent your brand with confidence and authenticity. When your people communicate clearly and consistently, it doesn’t just improve perception – it can transform business communication into a key competitive advantage.

How can communication drive employee engagement?

Engagement grows when people feel informed, valued, and heard, and communication is what makes that possible. Clear, efficient communication gives employees a sense of direction and purpose, helping them see how their role contributes to the organisation’s wider goals.

What is a communication channel?

A communication channel is the medium or pathway through which information is shared between people. It can be verbal – like face-to-face conversations, phone calls, or video meetings – or non-verbal and written, such as emails, instant messages, reports, or visual presentations.

Choosing the right channel matters because it shapes how your message is received. For example, complex or sensitive topics are usually better handled in person or over a call, while straightforward updates can be sent by email.