Bad Communication Is Holding Good Firms Back

Effective communication within AE firms is a perpetual challenge. Ask any principal about their firm’s top issues, and you can bet that communication is near or at the top of the list. It seems it’s never not a problem. Whether it’s explaining policy changes, announcing new hires, or communicating strategic shifts, something always seems to get lost in translation. So, to help you out, here are a few fictitious examples of how communication can go wrong—and right.

The hybrid work policy—managing expectations and easing anxiety

After nearly two years of ad-hoc, work-from-home arrangements, Preeminence Engineering Associates needed to formalize a hybrid work policy. Matt, the firm’s president, wanted to provide clarity on how the firm would operate going forward. The new policy would require at least three days a week in-office for most staff, with certain roles being eligible for more flexibility based on project needs and responsibilities.

  • Handled poorly: Wanting to avoid too much debate or resistance, Matt opted to post the new policy as an update on the internal portal with a brief email saying, “Please review our hybrid work policy, effective next month.” With no explanation of the “why” behind the changes or a clear articulation of expectations, employees were left to interpret the policy themselves.

The fallout was immediate and specific. Anna, a senior structural engineer, assumed her project-focused role meant she was exempt from the policy. Meanwhile, the administrative staff, unsure whether this change applied to them, continued to follow their previous arrangement. The result was that, on any given day, certain teams had only partial staff, which affected coordination for high-profile projects. The lack of clarity around the expectations also made team leaders like Ravi feel like they were babysitting, spending hours each week sending emails trying to pin down who would be in the office when. This constant uncertainty caused project delays, as cross-team meetings kept being rescheduled to accommodate availability, ultimately straining client relations.

  • Handled well: Instead, Matt approached the communication with empathy and transparency. He scheduled a hybrid meeting to announce the new policy, clearly outlining the reasons for the change—emphasizing the need for collaboration, client engagement, and maintaining team cohesion. He highlighted the benefits of the hybrid arrangement, like increased flexibility compared to pre-pandemic norms. Matt also allowed for an open Q&A where employees could voice their concerns, which helped resolve confusion early.

Anna, who had concerns about child care logistics, was reassured when Matt explained that some flexibility was still available for roles with specific needs, provided they were communicated to their supervisors. Ravi received a detailed schedule template to help team leaders plan around the hybrid model. After the meeting, productivity noticeably improved. Projects got back on track, and team leads were able to plan more accurately, knowing who would be present on which days. Overall, the engineering staff appreciated the clarity and consistency, which translated into smoother operations and increased confidence in company leadership.

The health care carrier change—anxiety vs. assurance

Clearwater Architecture Studio—led by its managing principal, Marybeth—needed to change the firm’s health care carrier. Rising costs and changes in the benefits landscape forced Clearwater to switch to a new health care provider that would be more cost-effective for the firm. However, this meant some shifts in coverage, co-pays, and network availability that could be seen as disruptive by employees.

  • Handled poorly: Marybeth, anxious about the potential negative reactions, decided to send a simple email: “We are switching health care carriers next month. Please see attached for details on the new policy.” This email had no context or explanation—just a 15-page PDF with dense text outlining coverage changes. The vague communication left employees confused and worried about their health care options.

One employee, Fran, who was undergoing treatment for a chronic condition, panicked after reading through the new coverage details. She wasn’t sure if her current provider was in-network anymore, and she couldn’t decipher how the change would impact her treatment. Fran ended up spending hours on the phone with the new carrier, only to find out that her doctor was, in fact, no longer in-network. Frustrated and feeling unsupported, Fran approached HR, but they were overwhelmed with similar requests for clarification, and they lacked specific information to provide timely help.

As confusion spread, morale dropped. Employees were anxious about their medical coverage, and many spent work hours trying to understand the implications of the change. A few even began to quietly look for other opportunities with firms offering more stable health care benefits. The mishandled communication ultimately led to a noticeable drop in productivity as anxiety and dissatisfaction increased.

  • Handled well: Instead, Marybeth could have taken a more thorough and supportive approach. She organized a company-wide meeting to introduce the new health care plan, explaining the reasons behind the switch—focusing on both the financial benefits to the firm and the steps taken to ensure comparable coverage for employees. Marybeth brought in a representative from the new health care carrier to explain key points and answer questions in real-time.

Marybeth made sure Fran’s situation and others like it were addressed specifically. Employees were encouraged to submit their questions in advance, which allowed the representative to be prepared with answers tailored to employees’ concerns, including how ongoing treatments would be handled. Fran, feeling heard, learned during the meeting that while her doctor was out-of-network, the new plan offered a specialist with equivalent qualifications, and the representative provided assistance in transferring care seamlessly.

Following the meeting, Marybeth sent a detailed email summarizing the key points, attaching a simplified FAQ and providing direct contact information for the carrier representative dedicated to answering employees’ questions. HR also set up one-on-one sessions for any employee needing extra support in understanding the changes.

The outcome was a smoother transition to the new health care plan, with employees feeling reassured and informed. Fran was able to continue her treatment without disruption, and the HR team experienced significantly fewer emergency queries, allowing them to focus on their core responsibilities. By anticipating concerns and communicating transparently, Marybeth ensured the firm’s productivity and morale remained stable, and employees appreciated the support through a challenging change.

The key new hire—fear of the unknown vs. healthy integration

Trivex Engineering Group, a 150-person mechanical-electrical engineering firm, had expanded enough to justify bringing on a new senior leader. Greg, the CEO, hired Laura—a highly experienced engineering leader from a larger firm—to spearhead the company’s growing electrical division. This was a strategic hire meant to strengthen Trivex’s technical expertise and position them for more ambitious projects. However, introducing a senior leader can create uncertainty, especially when employees are left wondering how the new addition will affect reporting lines, roles, or even the existing office culture: Would Laura shift priorities, clash with the mechanical side, or bring in her own people?

  • Handled poorly: Greg opted for a minimal announcement. He sent an email saying, “We’re thrilled to welcome Laura as our new head of electrical engineering. She brings a wealth of experience and will start on Monday.” No one really knew what Laura’s role entailed, how it would affect their positions, or what changes might follow.

As a result, Tom, who had been leading the electrical team on an interim basis, was unsure if he was expected to report to Laura, continue with his current projects, or step aside. Meanwhile, other team members, like senior electrical engineers Priya and Kevin, speculated that Laura’s arrival was a critique of the current leadership, leaving them worried about their career stability. This lack of information and context led to widespread anxiety. Tom began to disengage from his role, assuming he would soon be sidelined. Priya, unsure of her standing, decided to hold off on volunteering for a critical upcoming hospital project, thinking her contributions might not be valued under new leadership. The disorganization caused delays on an ongoing data center project, upsetting the client and leading to extra costs due to rework.

  • Handled well: Greg took a more thoughtful and inclusive approach. Before making a public announcement, he first held one-on-one meetings with key staff members. He met with Tom, Priya, Kevin, and other senior leaders in the electrical division. Greg explained why he was bringing in Laura and emphasized that this decision was not a critique of the current team but rather a step to enhance their capabilities as they took on more challenging projects. He made sure Tom understood that he would continue to play a vital leadership role, now collaborating closely with Laura, and reassured Priya and Kevin that the hire was meant to create new opportunities, not take anything away from their careers.

Having these one-on-one conversations first helped ease anxieties and made the existing team feel valued and included in the process. By the time Greg hosted the all-hands meeting to announce Laura’s hire, key staff already had the context they needed to understand the decision. Greg introduced Laura to the entire firm, explaining how her technical expertise would elevate the electrical division and help Trivex grow. Laura then shared her excitement about joining Trivex, her respect for the work already being done, and her eagerness to collaborate with the team.

Laura also made a point of scheduling individual meetings with team members, including Priya and Kevin, to understand their projects and listen to their concerns. Tom, reassured of his importance to the team, took the initiative to plan an integration workshop with Laura to align their approaches and boost collaboration. Priya, now confident in her standing, eagerly joined the hospital project team, and her contributions helped them land an early-phase contract. The data center project that had been experiencing issues quickly got back on track, and the client was impressed by the renewed coordination and technical depth. Laura’s integration was viewed as a positive change, energizing the electrical division and setting a new standard for leadership and collaboration at Trivex.

Lessons learned

These scenarios illustrate that communication is not just about delivering a message—it’s about how that message is delivered and received. Here are five key takeaways:

  1.  Be clear and direct. Employees want to understand what’s happening and why. Vague announcements breed speculation, whereas clear, direct communication builds trust. When Preeminence Engineering Associates clearly explained the hybrid work policy and provided context, the staff knew exactly what to expect, preventing misunderstandings that could derail projects.
  2. Provide context and support. Simply delivering news without context or support leads to confusion and anxiety. When Clearwater Architecture Studio changed health care carriers without an adequate explanation, employees like Fran were left to navigate complex changes alone, leading to panic and wasted time. In contrast, by explaining the reasons behind the change, offering support, and addressing specific concerns directly, Marybeth ensured employees felt informed and reassured, which made the transition smooth and maintained morale.
  3. Engage key staff before public announcements. Major changes, like bringing in a new senior leader, are opportunities to strengthen the team—but only if handled thoughtfully. At Trivex Engineering Group, the difference between Greg having private one-on-one discussions with key staff before the all-hands announcement versus simply sending an email was the difference between reducing anxiety and fostering enthusiasm versus creating uncertainty and mistrust. Engaging key team members early ensured a smoother transition and kept everyone aligned.
  4. Solicit feedback and acknowledge concerns. Whether it’s a policy change or a new hire, employees want to feel that their input is valued. Creating channels for feedback, even informal ones, gives staff a sense of agency and ownership over the change.
  5. Recognize contributions. Highlighting specific individuals or teams goes a long way in fostering a sense of belonging and appreciation. When new initiatives or changes happen, acknowledging the effort that went into preparing for those changes can help build morale and ensure employees feel seen.

The cost of poor communication: Poor communication doesn’t just create temporary confusion—it can damage morale, productivity, and even retention. In each of the examples above, when communication was handled poorly, the outcome was distrust, stress, or outright disengagement. People in AE firms are often managing detailed, intricate work; adding a lack of clarity on broader corporate decisions can turn a well-oiled machine into a chaotic tangle of misunderstandings, leading to missed deadlines, employee turnover, and dissatisfied clients.

The upside of thoughtful communication: Conversely, thoughtful communication breeds loyalty, clarity, and enthusiasm. When staff understand the why behind decisions and feel included in the journey, they are more likely to align their personal goals with those of the firm. They’ll become active participants in the firm’s success, not passive bystanders waiting for instructions from the top.

For you, this means investing time and care into crafting messages—not just sending them. It means thinking about the impact of every policy change, announcement, or celebration, and finding ways to make the audience feel heard, respected, and part of something bigger. Communication is the thread that weaves through every level of an AE firm; there’s a huge difference between getting it wrong and getting it right, so get it right.

To contact Mark Goodale, call or text 508.254.3914 or email [email protected].

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