SNC-Lavalin is one of the largest engineering companies in Canada, and one of the largest all around the world, however, failed to effectually communicate and face communication problem. This analysis report contains communication problems and influences on company. Additional information related to causes and symptoms of communication problem. Likewise, communicate with stakeholder groups result in concerns, and SNC-Lavalin use different communication model to deal with each group. The main communication problem is bypassing and different frames of reference. In communication process, bypassing can result in miscommunication, because the CEO and employee do not have the same symbolic meanings and bring own biases in any communication. Due to the longer lines of communication between CEO and employee, the message could be distorted. This problem impact on company fund missing and mystery payment, also, SNC-Lavalin’s stock decline a lot. The reason of problem happens because lack trust, lack communication skills competition for status and rewards.
It is easy to cause communication problem if no trust between communication，through the long over time, the mistakes will become seriously and many mistakes are due to lack communication skills. Meanwhile, personal status and rewards will cause bypassing, lack organization concept, to the extent that different people pay more attention on their own profit rather than the common goal. SNC-Lavalin shows several symptoms due to communication problem. First, agents help company win a contract by paid bribes, but can’t follow the appropriate routines. Second, after $56 million dollars missing, Gwyn Morgan, the company chairman, denied that there is no responsibility for superior officers, and resign suddenly after stated. Third, Cynthia Vanier help Muammar Gaddafi’s son smuggle and do illegal trading, as well as denied the charge. Employees and shareholders are the key stakeholder groups, however, different group has different concern.
To specific, employees concern about their job and income，because it is close related to employees’ life quality. Meanwhile, shareholders concern about their profit, because it means stock rights will be influenced, in other word, shareholders profit could losing. SNC-Lavalin follows the communication models with each stakeholder group. As for communicate with employees; the first step is having idea. After organize idea, use encode like transfer language and write down or typewriting. After that, delivered by announcement or email. In order to overcome misunderstanding, improve the flow of message in company. Sign on the paper one by one after employees receive, if have problem mark it clearly. SNC-Lavalin have to give an effectively communication to shareholders.
When idea formation by SNC-Lavalin, convert an idea into words that include meaning. It is necessary for general meeting of shareholders every year, in the meeting; shareholders understand the meaning stand for decodes the message successfully. Finally, ask question come up with feedback, and descriptive is the best choice. In conclusion, it is important for SNC-Lavalin communication effectively. This case analysis points out the main communication problem refer to SNC-Lavalin, at the same time, detail analysis about influence on company, moreover, discuss reason and manifestation about communication problem. After that, analyze the two key stakeholder groups, and each of them has different concern. Last but not least, SNC-Lavalin use communication model to deal the relationship with each stakeholder group.