A newly crowned high-level controller or Chief Financial Officer will find that he suddenly must communicate to broader and more diverse audiences than ever before and it is
your job to prepare him. Reporting on the company's numbers sounds like a straight-forward task, and most new CFOs are under the false impression that simply enunciating clearly
is all that is required to meet that task. However, the impact of these presentations is so dependant on the delivery. That delivery is only effective when leadership techniques
are employed and there is a strong connection made to the audience.
Whether you are the president, head of finance, operations, administration or human resources, how you communicate your data is profoundly important. I recently asked Jeffrey
Immelt, CEO of General Electric how he rated presentation skills among all leadership abilities for his or any management team and he didn't hesitate. "Oh, it's a top
three leadership skill, no question."
The earnings call is that unique communication where the CFO has a central role and he is speaking to a remote and often disparate audience. One can always expect analysts to
call in. But, there may very well be shareholders, employees, even the media on the line.
So what are the most essential elements the CFO has to consider before reporting on an earnings call?
- Put Himself in the Audience's Shoes - Go beyond the numbers and thinking about what the CFO needs to cover and have the CFO put himself in their shoes. What do
they want to hear? What is important to them? What would an analyst care about versus a reporter from The Wall Street Journal?
- Dry Material? Liven it Up - If the CFO is simply reading statistics and numbers off bullets on a PowerPoint slide, he is going to put the audience to sleep. Put some
passion and energy into the voice. Illustrate a point, show what it means. The CFO doesn't have to change his personality... sometimes just providing context will make the
message more memorable. For example: Instead of simply saying that "Our same-store sales have increased 15 percent." You can add: "For instance, Tulsa is finding a run on
seasonal items and had to hire five new employees."
- Keep Slides Simple - Be careful not to overburden the slides with too much information and flying-in animation. It will prove too big a distraction. Have your CFO use
his voice tone to accentuate key points that he wants the audience to remember.
- Don't Let Him Wither During Q&A - On an earnings call, there's no way of really knowing the audience's attention level. But, during Q&A, the audience's
attention is often highest. Don't let your CFO wilt during this critical time. He should stay resolute and on his toes. There is also the tendency for a CFO to simply provide
an answer - perhaps even just a number - and take the next question. He should seize the opportunity to repeat a key message he wants the audience to walk away remembering.
Many finance types will tell you that it is counter-intuitive for them to strategically prepare for such communications in a way that goes beyond knowing the numbers. Remind
them that leaders must home their delivery to get and stay at the top.
Contact:
Jerry Doyle is the executive vice president of CommCore Consulting Group. He can be reached at 212.468.4309 or [email protected].