Storytelling is one of the most powerful tools the modern CFO has. Investors, employees, and the board of directors are bombarded with quantitative and qualitative information on an hourly basis. By leveraging the art of storytelling, CFOs can deliver a message that stands out — transforming drab financial data into a compelling narrative that resonates with stakeholders, inspires action, and builds trust.
But even the most skilled communicators often don't think of themselves as storytellers. Peers, direct reports, and other stakeholders often see CFOs as people who “say what they want and do what they say.” In fact, many CFOs take pride in this perception.
But being a compelling storyteller reinforces that image, not contradicts it. CFOs who pride themselves on a transparent and direct communications style can use storytelling to become even more effective communicators.
Understand your audience
The first step in crafting an effective financial story is understanding your audience. CFOs need a clear picture of their stakeholders' needs, interests, and levels of financial literacy. With this knowledge, CFOs can customize their message in a way that's relevant and engaging. Whether they're speaking to the board, investors, or employees, a CFO's ability to connect with their audience on a personal level will have a huge impact on how well their message is received.
Identify key messages
The strength of a story is determined by its core message. Before digging into the details of a story, CFOs must determine the key message they want to convey. The message can be anything from a change in strategy to a shift in KPIs to the value of a new risk management initiative. A clear, focused message is the backbone of a narrative and ensures the speaker and audience a sense of consistency and direction throughout the presentation.
Incorporate relevant data
Although storytelling goes beyond simply presenting data, it is still important to incorporate relevant financial information. Data provides the evidence needed to support a narrative and reinforce key points. It also gives the story credibility. However, storytellers must present the data in an easy-to-understand way. Overloading the audience with numbers can be counterproductive. CFOs should select key metrics that align with the story's message and help illustrate the most important points.
Use analogies and metaphors
Financial concepts can be abstract and difficult for non-finance stakeholders to understand. Analogies and metaphors act as powerful tools to bridge that gap. By comparing the financial situation to familiar real-world scenarios, CFOs make the story more relatable and understandable. This approach deepens comprehension and makes the story more memorable.
Use visuals and multimedia
The saying “a picture is worth a thousand words” also applies to financial storytelling. Visual aids such as charts, graphs, and infographics bring data to life and concisely and clearly depict financial trends and patterns. Additionally, leveraging multimedia tools such as videos and interactive presentations can add depth to your story and make it more dynamic.
Create a story flow
A compelling story follows a structured narrative flow that consists of a beginning, middle, and end. This format captivates the audience and ensures a logical flow of information. For example, a CFO might use this structure to outline the challenges facing the organization, the steps taken to address those challenges, and the results that were achieved. By weaving these elements into a cohesive narrative, a CFO can create a story that is both informative and inspiring.
Emphasise the human element
The essence of storytelling is connecting with people emotionally. CFOs humanize their stories by focusing on how financial decisions impact individuals, teams and the organization. Sharing personal anecdotes, success stories or stories of positive change can evoke emotion and make a story more relatable. Emphasizing the human element makes for a much more memorable narrative.
Practice and refinement
Like any skill, storytelling takes practice and refinement. CFOs should practice how they speak, paying close attention to pace, tone, and body language. Trusted colleagues and experts in the field of communications can provide valuable feedback. By continually honing their storytelling abilities, CFOs will increase their effectiveness as communicators and leaders.
In today's business world, the CFO's role as a storyteller is more important than ever. By honing their storytelling skills, CFOs will be better equipped to guide their organizations through the complexities of the financial environment, drive overall success, and create lasting impact.
