Excellent CFOs and financial leaders aren’t just good at running the numbers, forecasting, and making smart decisions for the organization. A huge part of the role is being able to explain the data and translate financial reports into meaningful, actionable items for the non-financial leaders they work alongside.
Having a financial translator is important to keep everyone on the same page, regardless of department. When financial information is delivered in a way that can be understood by the care team, activity directors, board members, and donors alike, everyone remains dedicated to the mission and understands why decisions are being made.
Here are a few ways you can make sure you’re communicating your financial reports in a way that’s meaningful to non-financial leaders.
Start with a Summary
Open your reporting with a high-level overview before you dive into the details. Maintain a narrative focus structured around business outcomes instead of getting bogged down in the numbers, and make sure you answer the so what? so leaders understand what the data actually means before moving on to the specifics and asking them to make decisions.
Tell a Story with the Data
Instead of leading with the numbers, let the narrative be the driving force that’s supported by the data. Turn abstract numbers that are hard to wrap your head around into a story about the challenges, wins, and choices the organization experienced that month.
Don’t complicate your report by using financial jargon or technical accounting terms that your fellow leaders might not understand. By using everyday business words in your report, you keep people engaged and invite them into the conversation instead of slamming the door in their face and keeping them out by using terms you know they don’t understand.
Use Visuals to your Advantage
The way you present the data can make a difference too. By opting for charts and more visual data representations, leaders can identify patterns immediately from visual cues alone. This gets everyone on the same page faster, and with less explanation on reporting day. Similarly, using clear, descriptive headlines like “5% increase in net revenue,” instead of generic labels like “Q3 Overview” keeps focus in the right place.
Focus on Key Metrics
Trying to jam every data point into your report will mean you never get through it all with an engaged audience. Pick a few critical KPIs to focus on, and tailor your reports based on which department you’re presenting to if you meet with them separately. Reporting all the data to everyone will likely end up being a waste of time. Part of your role is knowing who needs to know what information to make decisions and what information will just be excess.
Connect Financial Results to Operational Metrics
Enter their world instead of trying to bring them into yours. Tie financial results to operational metrics they control so they can understand how their actions impact financial results and what different financial outcomes mean for their day-to-day. By focusing on the human impact, you can explain how the organization’s financial results impact growth and success.
Finally, always leave time for questions and invite ongoing dialogue about any clarifications or points of confusion. Creating a relationship with your fellow, non-financial leaders where they feel comfortable asking questions and following up on anything they don’t fully understand will help your organization by making sure decision-makers have all the information they need to make the best possible choices.
By perfecting your financial reporting strategy and tailoring it to your specific audience, department leaders will know what to expect from reports and feel confident that you’re consistently giving them the information they need. This creates a trust amongst leadership that can have a big impact on efficiency and organization success.
If your organization is in need of a good financial translator during a period of strategic growth or transition, or you’re interested in a workshop or speaking engagement on the topic, contact KSH Consulting to learn more about our services and how we can support you.
