Narrating the Numbers: The CFO's Guide to Impactful Data Storytelling
CFOs aren’t natural born storytellers. Buried in spreadsheets, they can slice and dice data into meaningful charts and graphs but extracting that data and turning it into a good story, demands a completely different skillset. We’re not saying numbers aren’t useful but, numbers are incomplete without context. And storytelling is the best way to educate your audience and give investors the confidence they crave.
Here are some tips to help you do so:
1. Tailor the Message: What do you want your audience to know? Use explanatory analysis and communicate in their language. Simplify complex financial data by crafting relatable analogies and tying it back to strategy. Before diving into data, set the foundation by explaining the progress made so far. Know your audience's aspirations and priorities – this understanding will fuel a stronger narrative.
2. Evoke Emotions: The challenge lies in unearthing the story within your data – a story that resonates emotionally. Don't just present numbers and facts; humanize the data. Connect it back to strategy, whether it's customers or market transformations. By sharing challenges and vulnerabilities, you create protagonists and antagonists, infusing your narrative with authenticity and relatability.
3. Balance Substance and Style: While data is your ammunition, it's the story that takes center stage. Think of your narrative as the main course and data as the seasoning that enhances flavor. Immerse yourself in the business's intricacies – and use it to empower your company as the hero. Then, layer data onto your narrative to enrich and validate your points. This ensures data adds value without overwhelming.
4. Visualizations with Purpose: Visualizations serve as navigational aids within your narrative. Ensure they complement the story rather than overshadow it. Like a stoplight, they should trigger actions – stop, reflect, or continue. Use visualizations to provoke emotions, igniting decisions.
Navigating the world of data with a narrative lens will not only bolster your influence but also steer your company towards informed, resonant decisions.
By combining these strategies, you can create a robust story framework that fosters understanding, builds trust, and maintains a positive relationship with your investor community.
Start a conversation. Reach out to Graham Farrell (Graham.Farrell@Harbor-Access.com) or Jonathan Paterson (Jonathan.Paterson@Harbor-Acess.com) to learn more about Harbor Access.