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Is e-mail really good for business?

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PC World

March 17, 2000
Web posted at: 8:21 a.m. EST (1321 GMT)

(IDG) -- The lawyer is discussing a case settlement with a client by e-mail.

"I think our firm deserves $1.1 million," the attorney writes. The client fires back an answer: "You must be kidding, right? Let's not waste each other's time, OK? Send me another message when you're interested in having a productive discussion."

Would the reply have been the same if they were sitting across a conference room table? Or would they miss the smile, the knowing nod, or the other nonverbal cues that prompt a different answer?

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Face-to-face negotiations certainly have their place, suggests a Stanford University study. But e-mail can be another medium that contributes to "the psychology of trust" important to business relationships, says Michael Morris, an associate professor of organizational behavior at the Stanford Graduate School of Business. He ran several laboratory experiments to study trust development in different media, especially e-mail.

E-mail is an appropriate vehicle for rapid-fire notes and information. But often, a message that's especially direct can come across as rude; and one intended to be humorous can come across as hostile, Morris finds. That's when negotiations conducted over e-mail break down, he says.

Combining Communiques

For example, e-mail is a useful way to deliver documents, but it's not necessarily the best way to discuss them, suggests Ted Latty, a partner at law firm Hughes, Hubbard & Reed, LLP.

"We use e-mail extensively for internal interoffice [communication] as well as with clients," Latty says. "It's become almost imperative."

Face-to-face meetings are also sometimes imperative, he adds. Discussing contracts by conference call based on e-mailed documents can kill productivity.

"Often, a substantial amount of the conference call is spent saying, 'what page is that on?'" Latty says. "There are some times that you can negotiate or revise a document by e-mail, but it's not the most efficient means since there is a time lag and it's not as effective as speaking. There are many nuances that a conversation can clear up."



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