The Power of Data Storytelling
A clear and engaging response is needed. Analysts, shareholders, and other stakeholders often ask the chief financial officer questions about the company. Preparing the correct answers for both first and follow-up questions takes significant effort. As a result, storytelling has become an essential skill for business leaders. It’s not just about having a good story. As my father, an advertising executive, used to say, “the story is in the telling.”
Scenario
Suppose your General Manager has given you the task to analyze the portfolio’s margins deeply. You need to study various financial metrics. This also requires examining trends over recent periods. This involves exploring revenue streams, cost structures, and the overall performance of each asset within the portfolio. Additionally, you have been assigned a project to evaluate growth opportunities for your business. This project entails conducting market research. It includes identifying potential areas of expansion. Lastly, it involves considering competitive dynamics in your industry.
Outcome
You have thoroughly tackled the task. You dedicated countless hours to analyzing data and researching articles. You studied history and engaged with other people around you. Ultimately, you compiled your findings into a report. But, you only received feedback like “I’m not grasping what you’re saying” or “What’s the main point?” from your Business Partners.
I understand how challenging and disappointing it can be when you find yourself thinking, “Why didn’t they grasp it? I have devoted countless hours to analyzing, preparing, and presenting my recommendations. What is there not to comprehend?” Many of us have faced similar situations at various points in our careers. It’s likely that very few individuals are naturally endowed with both storytelling and data/business analytics skills at the same time.
Why is Data Storytelling so important?
We not recall much from our childhoods, but fairy tales linger in our memories. Why is that? Because they were narrated as stories. These stories highlight essential elements. “Good triumphed over evil”; “The prince vanquished the dragon, wed the princess, and they lived happily ever after.” You grasp the essence of this already. Storytelling features a clear beginning. The middle can cover challenges, business cases, and performance. It concludes with a memorable ending, like a key takeaway, suggestions, conclusions, or a call to action. As one wise individual once said:
“No one ever made a decision because of a number. They need a story.”
What does this mean for you?
What does this mean for finance professionals? As a data analyst, possessing technical skills takes you only so far. There is a constant need to “translate” the numbers into a “Business Partner’s language.” This ensures that even leaders without financial know-how can grasp the insights. I believe that a critical facet of this skill is crucial for all finance professionals. It is especially important for those involved in Business Partnership roles. This involves situating numbers within CONTEXT = BIG PICTURE = WIDER STORY.
This topic to be continued in next post. Rewritten from my original post at FP&A Trends Website.
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