Having traveled over 236 million miles across 10 months, the Mars Climate Orbiter began its final descent onto the red planet. But what was supposed to be a major engineering feat turned out to be a $125 million fiery mishap. The satellite incinerated upon entry because NASA’s Jet Propulsion Lab had been using the metric system to guide the satellite flight path and the Lockheed Martin engineers used the standard English system of inches and feet when designing its guidance software. Each team assumed their unit of measurement was known by the other and failed to communicate or validate their assumption. Years of work were negated due to imprecise thought and lack of precise and effective communication. Ouch!

Deal making is a team sport, and team sports rely heavily on precise and effective communication to avoid calamitous Mars Orbiter-like outcomes. Various team members are responsible for different roles and activities. When people do not understand the specifics of the business, the situation, or key analyses, millions can be put in jeopardy and adverse outcomes like the NASA and Lockheed snafu can occur.

Imprecise financial diligence can distort the earnings base. A cloudy understanding of customer relationships and contracts can lead to forecasting errors. Deals can fall apart when parties fail to realize they are talking past each other. And deal terms not properly documented in the final purchase agreement can lead to conflict and unhappy parties. Precision matters. 

How can you be more precise in your thinking and communication?

• If you do not understand something, ask questions to clarify.
• Use active listening techniques, like playback.
• Test your own comprehension and understanding by bulleting it out or describing the issues to someone else.
• If you are going to open your mouth to advocate for something or make a point, make sure you know what you are talking about.
• Do not use hundred-dollar words or fancy jargon. Keep your written and verbal communication simple and precise.