What Advice Can Improve Communication of Financial Results to Non-Financial Stakeholders?
ProfitMargin.io
What Advice Can Improve Communication of Financial Results to Non-Financial Stakeholders?
Imagine being able to make complex financial results clear and engaging for everyone in the room. In this Q&A, insights from a Managing Consultant and an Owner reveal the secrets to achieving just that. The first expert suggests framing numbers within a narrative, making them more relatable. The article concludes with a powerful tip on connecting numbers to wider goals, bringing a total of four invaluable insights to light.
- Frame Numbers Within a Narrative
- Keep It Simple and Visual
- Combine Clarity and Creativity
- Connect Numbers to Wider Goals
Frame Numbers Within a Narrative
Communicating financial results to non-financial stakeholders can sometimes feel like translating Shakespeare into emojis, but fear not—it's all about clarity and relatability. One piece of advice I always lean on is to frame the numbers within a compelling narrative. Picture this: you're not just sharing data, you're telling a story about your business. At Spectup, when we're presenting results, we aim to connect those numbers to real-world impacts and the overarching business goals.
I remember working with a startup that was gearing up to showcase its financial results to a board filled with both tech-savvy individuals and those who broke out in hives at the sight of spreadsheets. We turned dry statistics into a journey, painting a clear picture of where the company was, where it intended to go, and the tangible milestones along the way. It was like converting a GPS map into a story of adventure, with each financial key point serving as a landmark.
We also use visual aids—a well-placed chart or graph can make concepts much easier to digest than a block of text. I often encourage sprinkling in some analogies or even anecdotes that align with stakeholders' interests or experiences. This approach helps bridge the gap, allowing everyone to see how their contributions tie into the broader financial landscape. Ultimately, it's about making the information accessible and engaging, transforming financials from intimidating figures into a shared vision that everyone can rally behind.
Keep It Simple and Visual
When communicating financial results to non-financial stakeholders, it's essential to keep things simple and focused on the big picture. I've learned that using visuals like charts and graphs makes complex data easier to understand. For example, showing how a specific marketing campaign impacted revenue visually helped my team quickly grasp the results. My advice is to highlight key takeaways, avoid jargon, and show how the financials connect to the company's goals. This approach fosters better understanding and alignment.
Combine Clarity and Creativity
Effectively communicating financial results to non-financial stakeholders is an art that combines clarity, creativity, and psychological insight. A great presentation integrates these key elements:
1. Simplicity: Use clear, jargon-free language.
2. Visualization: Enhance understanding with graphs, charts, animations, or videos.
3. Behavioral Psychology: Focus on what matters most to your audience.
4. Human-Only Touch: Never use AI for preparing financial reports.
5. Engagement: Add humor and historical analogies.
6. Positive Framing: Turn challenges and negatives into opportunities.
Connect Numbers to Wider Goals
When talking about money with people who don't know much about it, it's helpful to connect the numbers to the wider goals of the group. I always stressed how income growth was linked to certain events, like the start of a marketing campaign or the release of a new product, whenever I talked about it. If these projects helped the company make more money, I would stress how they fit in with its bigger goals. In this way, everyone knows that these numbers aren't just made up, but rather show the long-term plan of the company.
To make the numbers easy to understand, I add a story to them. There would be more to it than just showing a graph or table of numbers. I would also talk about how the business worked to make money. I might talk about how we kept costs down by changing how we did things during a tough quarter, for example. The team will then be able to see how those money numbers changed real life, which will make the link between the numbers and the business's story stronger.
