Financial professionals, in many cases, struggle with presentation skills. They have the financial knowledge but are unable to adequately communicate to non-financial professionals that must use the information to manage resources. This is a failure of financial significance. Financial knowledge is of little value unless it can be adequately communicated to our customers.
Financial professionals must realize they are in the Customer service business. They service both external and internal customers. Accordingly, they must meet two standards providing and explaining external reports as required i.e. Balance Sheet, Income Statement & Cash Flow Statement.
They must also provide financial information to internal customers. Financial information is not a constant. It must be customized to fit the needs of the specific internal customer. It must also be communicated so the customer understands. Effective communication is about the transference of understanding. The understanding of financial information must be transferred to customers in ways they can understand so profits & productivity can be enhanced with effective control of resources.
Non-financial professionals constantly complain that financial professionals do not have the ability to present in an understandable manner the relevant financial information needed to effectively manage resources. I have often advised them to ask financial professionals three question relation to financial information. They are:
1. What does that mean?
2. What am I supposed to do with it?
3. What would you do with it?
These three questions provide the backdrop for effective communication of financial information. It is not enough to merely provide financial information. The communication should be enhanced to indicate what the information means and recommended ways to utilize the information plus, where appropriate, anecdotal context for further amplification.
My Webinar COMMUNICATING FINANCIAL INFORMATION TO NON-FINANCIAL STAKEHOLDERS provides tools & techniques to communicate financial information to non-financial stakeholders
