Communicating Financials to Executives

Preface: Our experience with financial communication. 5 Chp. 1 Why Financial Communication to Executives Requires Special Attention. 8 The Pressure is Mounting on Executives. 9 Insight X Influence = Impact 10 The Purpose of Finance. 12 The Value of Finance. 14 The Intrinsic Motivation for Finance Professionals. 15 The Job is on the Line. 17 All We Need is a Framework for Financial Communication. 18 Chp. 2 The Struggles of Finance Professionals to Communicate Financials. 19 The Three Main Challenges. 20 Sharing Too Many Details. 21 Having No Consistent Structure. 23 Making No Apparent Recommendations. 25 Meet Sarah, a Senior Financial Analyst 27 Chp. 3 Five Steps for Communicating Financials to Executives. 28 Take a Customer-Centric Approach. 29 From Data to Insights. 31 Five Steps for Financial Communication to Executives. 33 Info. 34 Insights. 35 Recommendation. 36 Evidence. 37 Action. 39 Sarah Gets to Know Her Customers. 40 Chp. 4 Step 1: Information: What is the Financial Status. 42 Define an Objective and Target Stakeholder. 43 Data Extraction: Access Relevant Data Sources. 46 Data Preparation: Build on a Proper Foundation. 47 Data Analysis: Extracting Relevant Insights. 50 Data Selection: Present Only What Matters. 57 Moving from Information to Insights. 59 Sarah’s Data Struggle. 59 Chp. 5 Step 2: Insights: What Are the Key Attention Points?. 61 What is an Insight?. 62 Cater to Your Audience. 65 Empathy: Present Insights Relevant to Your Stakeholders. 66 Types of Analytics. 72 Tips to Communicate Your Insights. 76 Moving from Insights to Recommendations. 82 Sarah Uncovers the Root Causes of Poor Revenue Performance. 83 Chp 6. Step 3: Resolution: What Can We Do About It?. 85 Distinguish Between Output and Outcomes. 87 Dare to Have an Opinion. 89 Leverage Structured Problem-Solving. 90 Tips for Making a Recommendation. 97 Supporting Your Recommendation with Arguments. 99 Sarah Ideates Potential Solutions. 99 Chp. 7 Step 4: Argumentation: Why Is This a Good Idea?. 102 The Difference Between Argument and Facts. 102 The Magic Number of Three: Why Three Arguments Are Ideal 105 Expanding the Definition of Facts Beyond Numbers. 108 The Importance of Selectivity. 111 From Argument to Decision. 113 Sarah Backs Up Her Recommendation. 114 Chp. 8 Step 5: How Do We Get Started. 116 Summarize and Ensure a Common Understanding. 116 Anticipate Change Resistance. 117 Pave the Way Forward. 121 Insist on a Decision: Turning Discussion into Action. 122 Getting Started with the New Sales Channel 125 Chp. 9 Considerations on Data Visualizations. 128 Make It Easy to Decode Your Key Message. 130 System 1 and System 2 Thinking. 131 Pre-Attentive Attributes and Gestalt Principles. 136 Chp. 10 How to Prepare the Perfect Management Report 145 Structuring Your Management Report 147 A Mock-Up of the Perfect Management Report 149 Chp. 11 How Finance Professionals Become Excellent Communicators. 157 Business Cases. 161 From Analysis to Presentation. 163 One Size Does Not Fit All 164 Final Tips on Communication. 165 Chp. 12 Practical Steps to Start Improving Your Communication Skills. 168 Taking the First Steps. 169 The Next Steps. 171 From Steps to a New Company Culture. 173 It is Time to Get to Work. 174