What do you do if non-financial stakeholders struggle to understand complex financial information?

When presenting financial data to non-financial stakeholders my focus is on having less clutter on the slides. Too much information and a lot of acronyms/jargon can be overwhelming for the audience. Secondly, it is important to engage the audience by explaining essential terms upfront. I generally use examples to clarify these concepts. Thirdly, I frame financial data within a business case narrative. Begin by clearly stating topic such as the company's quarterly Profit and Loss statement, and break down the key components. A structured layout can help in grasping the financial information more effectively & complex data becomes an understandable story. Lastly, I encourage the audience to ask a lot of questions to clear up any ambiguity.

A few I would consider is - prepare visuals like charts or graphs - simplify the data presentation in an easy to understand terms - break down the information into easily digestible chunks - provide training and workshops

I've used the below techniques when presenting financial data to non-financial stakeholders: - avoid data tables - avoid complex pivots with too many filters - use plain English instead of jargon - provide chart-based visual comparisons for relevant periods

I always find it useful to use analogy to explain complex financial concepts to the broader team, I like to use for example the idea of the water tank to explain working capital and cashflow, we need to make sure there's a good balance of water feeding the tank compared to water leaving the tank, and I use imaginary faucets to show water in and out as sources of cash in and out of the company. Once the team understands the dynamics as well as start thinking as a small entrepreneur which needs to control his / hers cashflow on a daily / weekly basis, strong financial performance becomes a given.

If non-financial stakeholders struggle to understand complex financial information, it’s essential to simplify the information and communicate it in a way that is accessible and relevant to them. Here are some steps you can take: 1. Use Plain Language 2. Visual Aids 3. Analogies and Examples 4. Provide Context 5. Interactive Sessions 6. Training and Education 7. Regular Updates 8. Seek Feedback By implementing these strategies, you can help non-financial stakeholders better understand complex financial information and make informed decisions.

I used the ice cube example to explain the time value of money. Imagine you are paid your monthly salary as a large block of ice. All you have to do is take that block to the bank, where they will weigh it, and fund your account accordingly. Alas some of the coordination procedures means that to all intents and purposes that bank is two miles away, uphill across broken ground, and in subsaharan temperatures. Best of luck then...

One thing that I have found helpful is breaking down the complexity of the financial concepts is by connecting it to their daily work routine. For instance : let’s say if I have to simplify the cash flow of an Automobile Store I would connect the workings of the finance to a workings of a car i.e. while buying the car parts to have inventory would lead to outflow of the cash (expenses) however when the said parts are installed in the car that comes in to be fixed will lead to inflow of cash (income). This way the simple cash flow can be understood and to be at a better standing in terms for finance there has to be a balance in both inflow and outflow just the way a car needs to be services regularly to be in good health.

Finding a sweet spot between their daily routine or operational nuances (what they are used to and can interpret fluidly) and such financial concept can help, essentially starting from the stakeholder's point of view to the financial point of view. Breaking the whole into bits and connecting the bits to make the whole in the stakeholders' mind can be very helpful. While at it, use simple words. once they get the simple words, tell them the terminology that describes that.

When non-financial shareholders struggle to understand financial information, it is important to communicate in a clear and simple manner 1. Provide explanations: Break down complex financial terms and concepts into simpler language that is easy for non-financial shareholders to understand. Use examples and analogies to help illustrate key points. 2. Use visual aids: Visual aids such as charts, graphs, and tables can help make financial information more digestible and easier to comprehend. Visual representations can often convey information more effectively than written or verbal explanations.

Using interactive tools to explain financial data to non-finance stakeholders can greatly enhance understanding and engagement. 1. Choose the Right Tool: Select an interactive tool that suits your audience and the complexity of the financial data. (e.g., Tableau, Power BI), data visualization platforms (e.g., Infogram, Datawrapper), or even simple Excel spreadsheets with interactive features. 2. Simplify Complex Data: Break down complex data. Focus on key metrics and trends 3. Interactivity: Incorporate interactive features such as filters, sliders, or drill-down capabilities to allow stakeholders to explore the data at their own pace and focus on areas of interest. 4. Storytelling 5. Engage Stakeholders: 6. Feedback Loop

For interactive financial tools that engage stakeholders, you can use dashboard platforms like Tableau, Power BI, or Google Data Studio, which allow users to create interactive dashboards with financial data. Stakeholders can explore various metrics, drill down into specific data points, and customize their views according to their interests.

Interactive financial tools act as friendly mentors in the corporate arena, especially for non-financial stakeholders. They simplify complex financial terms, making them easy to understand. With each interaction, they guide users through various financial situations, explained clearly. Personalized simulations provide tailored experiences, perfectly suiting the company's needs. Like supportive companions, these tools cater to individual requirements, ensuring understanding and confidence. With newfound insights, everyone can manage company finances confidently, making informed decisions to achieve goals. This journey highlights the importance of financial literacy in corporate decisions, empowering stakeholders to contribute effectively.

Besides explaining the situation, another aspect that has been found useful is of presenting the data in form of vertical and horizontal comparisons not only within the company but with its peers as well. This makes those who find it difficult to understand complex formulas, apprehend the underlying need at hand.

I strongly believe in the saying: "Give a man a fish and you feed him for a day.Teach a man to fish and you feed him for a lifetime". Taking few short financial literacy sessions with the non-financial stakeholder would help them understand the basics for life. Taking some time to invest in educating the stakeholder can not only help them but also help building your credibility, trust and showcase your willingness to go the extra mile.

Educational sessions are great tool and one of main points in building finance business partnership in organization to increase finance literacy among non-finance stakeholders, increase efficiancy and build trust. Depending on stakeholders level of fluency and problems you want to solve, you can create training with basic information and/or intermediate for higher management. Also, it is also important to make it on continues basis for any new joiners.

Education sessions that are programmed in such a way that it consists of root level details. Simple language and data presentations are very useful. One educator or trainer should use the routine and practical example that helps Non-financial stack holders to understand things easily. Also a short in between QnA session to make it very simple and easy to understand financial terms required that can help a lot.

Education sessions are the best possible way through which one can teach millions of others about financial statements reading. - can organise the seminar on social media - can record the videos and upload them on YouTube(can generate income if views reach a certain number)

Grasp people-'s gaps: Figure what your folks don't know yet, what they ne-ed to get. Lend real-life- color: Use genuine e-xamples from your turf and industry to illustrate finance topics. Ge-t hands moving: Give- them the mic: Set aside- Q&A time to address specific conce-rns, clear any fog. . Bring visuals: Slides, diagrams, charts make comprehe-nding, retaining info easier. Visual aids simplify comple-x data into understandable forms. Supply resource-s: Provide handouts, cheat shee-ts, online tutorials for post-session refe-rence. Hammer home- key points, fuel ongoing exploration. Obtaining insights: It's crucial to collect opinions from atte-ndees, gauging the impact of the- instructional sessions.

For developing understanding of complex financial information by non-financial stakeholders, some steps can be taken on a continuous basis, like, 1.If possible, have prior interactions with the non-financial stakeholders to get their perspectives to incorporate into the financial information. 2.Develop rapport with the stakeholders for a better exchange of ideas. 3.Have follow up discussions / meetings on a one-to-one basis to provide more explanation, if required.

Financial information can be complex and difficult for non-financial stakeholders to understand, especially if they don't have a background in finance or accounting. Continuous support helps to bridge this gap by providing ongoing guidance and clarification as needed.

Continuous support - This can be costly to the non-financial stakeholders, since no professional will give continuous support without monetary benefits. But if anyone wants to continue support they can always connect me

In my experience, continuous support is not just about answering questions and providing explanations. It's about fostering an environment of open communication and trust. This involves simplifying complex financial data and using interactive tools to facilitate understanding. It's also about being proactive in identifying areas where stakeholders may need additional support or training. This approach not only aids in comprehension but also empowers non-financial stakeholders to make informed decisions, contributing to the overall success of the business.

I create a safe and open environment to encourage and make stakeholders feel comfortable asking questions and seeking clarification. This helps to ensure that everyone is on the same page.

From my personal experience, speaking "their" language for non financial stakeholders contributes to building trust and understanding more than anything else. Focusing on what is important to them first and understanding their perspectives will lead to greater acceptance on their part to any data presented.

Relationships are essential to financial communication. Knowing your audience and tailoring your delivery to that audience is the difference between success and failure. A feedback loop is the perfect way to ensure that non-finance oriented team members remain engaged and invested in their financial performance. If you can find a way to make finances matter to them, they will make better financial decisions which is the raison d'être of a finance business partner. The best way to do that is to maintain a continuous relationship with open communication.

Don't use acronyms when presenting! I always spell out the full terms and put acronyms in brackets. But verbally I tried to always quote the full name, i.e. Net Present Value as opposed to NPV. This is especially important if you are presenting to a diverse group. Acronyms can mean very different things depending on the audience's background!

Adult learning is usually life-centered and financial numbers are usually an outcome of an activity. So, 1) Tell the story behind the number, 2) Relate it to life, 3) Simplify the complex information into small bits, 4) Use white boards or plain papers or charts and power points depending on where you are. Not all conversations happen in the boardroom with a projector, so use the available media to communicate.

When a Finance professional talks to non financial stakeholders he needs to follow the following steps to deliver his message simply. 1- Create the message As a story. 2- Avoid technical and complex expressions and use simple and general expressions. 3- Concentrate on the key message. 4- avoid more and more details. 5- answer any questions with general and simple language. 6- get feedback to improve your experience 7- Build good relationships with them