Let's face it, financial data can be as exciting as watching paint dry. But don't let the dryness of numbers fool you - the ability to tell a compelling story with financial data is a superpower for today's FP&A professionals. As Guy Kawasaki, the former Chief Evangelist of Apple, once remarked, "In today's world, where we are constantly bombarded with information, storytelling is more important than ever. It's a way to cut through the noise and connect with people on a deeper level".
The role of FP&A professionals has evolved significantly over the past few decades. In the past, their primary responsibilities were centered around reporting & compliance. However, as businesses have become more digital and global, and decision-making timeframes have shortened considerably, the expectations placed on the FP&A function has expanded to include a wider range of responsibilities such as strategic planning, forecasting & budgeting using advanced analytics, and performance & risk management.
Today, the FP&A function is viewed as a thought leader that works closely with other functions, such as Business, Sales, Marketing, Product & Engineering to achieve desired business outcomes. As the role of the FP&A function continues to evolve, it's becoming increasingly important for professionals in this field to develop narrative techniques that enable them to communicate complex financial information in a clear, concise, and relatable manner to stakeholders.
Best Practices in Storytelling for FP&A Professionals :
Setting the Stage, and aligning on the objective/problem statement at hand is an effective way to craft a good story/narrative. It helps your stakeholders understand the decision that needs to be made.
Knowing your Audience is crucial for successful storytelling. Understanding your stakeholders’ needs, pain points, and preferences will help you tailor your message and make it more engaging and relatable
Leading with Key Takeaways or an executive summary at the beginning of your story helps to grab your audience's attention and provides a roadmap for the rest of your presentation.
Using Visuals such as charts, graphs, and infographics can help to simplify complex information and make it more accessible to your audience.
Benchmarking performance against industry standards or competitors can help to provide context and perspective to your story and make it more relevant to your audience.
Keeping it Simple is the key to success. Distilling complex information into simple and easy-to-understand messages is key to effective storytelling. It helps avoid confusion and ensures that your audience will remember the key points of your story.
Time Management is at times challenging but extremely important. Knowing how much time you have to tell your story and pacing yourself accordingly will help you to keep your audience engaged and ensure that you cover all of the key points.
Have a Bias for Action and Decision-Making. The goal of your narrative should be to influence your stakeholders to take action or make a decision, and your message should be designed to motivate them to do so.
Being Authentic is non-negotiable. Being genuine, honest, and transparent in your message helps to build trust with your audience and makes your story more compelling.
Soliciting Feedback from your audience can help you to improve your message, understand your audience's needs better, and ensure that your story resonates with them.
How to Cultivate the Art of Storytelling :
Developing Expertise in the Subject is essential. Once you have a thorough understanding of the topic you’re presenting, you can create a more compelling storyline that resonates with your audience and effectively conveys your message.
Reading Widely & Often helps cultivate the art of effective storytelling. Exposing yourself to a variety of genres and writing styles, you can broaden your knowledge and gain insights into how to tell compelling stories.
Building a Network of Mentors can go a long way. Mentors can offer guidance and feedback on your storytelling techniques, providing you with valuable insights that can help hone your skills.
Practicing Storytelling with your manager and peers can help you to hone your skills and receive constructive feedback. It can provide you with the opportunity to experiment with different storytelling techniques and refine your approach based on the feedback you receive.
Taking Online Learning Courses can be a valuable tool to improve your skills. There are numerous courses available that teach basic storytelling techniques as well as advanced methods for crafting compelling narratives.