Financial managers spend half the time analyzing information. Then, half the time conveying it to an audience. Therefore, communication is an important skill that they must master.
Professionals in this position oversee the financial health of their company. Sometimes, it involves sharing information that can present serious ramifications for the organization. Bringing it to light can cause serious ripple effects throughout the company.
Conveying information is easier when the news is positive. Even then, financial managers must understand their target audience.
If the news is positive, professionals must present it in ways that the most cynical will accept as true.
Communication might not make or break this career path but solid communication skills improve the longevity of their careers and prospects.
Like other skills, financial managers can improve their deliveries. Let’s look at how a financial manager can improve their communication skills.
Table of Contents
Know the Target Audience
Financial management has a low-key sales component built into the job.
Before a pitch, salespeople must know their audience. To close sales, salespeople must connect with them. Financial managers don’t close deals but sometimes they must convince executives to take certain actions.
Thus, managers must insightfully convey the information and solutions.
When you know the target audience, you can communicate information in their manner.
If executives must change a course of action, what are the reasons that they would reject it?
For example, you might realize that extended stay accommodations make more fiscal sense for traveling workers than hotels.
Professionals can illustrate why through charts and numbers. Then, present it to corporate travel managers who can work with services such as Hotel Engine to streamline budgets.
Active Listening
Let’s say that you’re still working on understanding your target audience. One way to become better acquainted with them is to actively listen to their comments and questions.
Most people hear others when they talk. Active listening seeks to hear others and to provide solutions. One way to test your active listening skills is to repeat what you heard. You can rephrase the comment and question and set yourself up to deliver solutions.
Active listening is a major component of improving communication skills.
Assess Body Language
Giving a financial presentation is akin to public speaking. No matter how great the speech sounds in the speaker’s mind, they must read the room during the delivery.
If you start to lose the room, think on your toes. Maybe the best way to recapture the audience is to summarize the rest of the speech or presentation.
Delivering pessimistic financial information will change the mood in the room and body language. Letting executives know that financial cuts loom isn’t going to make them stand up and cheer.
Therefore, consider using a build-break-build strategy when delivering less than stellar information. Start on a positive note. Then, hit on the issues. End the presentation on a high note by proposing solutions.
If you deliver good news and you still lose the room, consider taking public speaking classes.
Avoid Jargon
The financial sector has its jargon. Professionals need the jargon to accurately assess data among each other. When speaking with others outside of the department, avoid using it.
Translating jargon into everyday business language will improve your ability to communicate with a range of professionals. Plus, it shows that you understand your material well.
Financial managers work with accounts receivables, payables, break-even points, and investment strategies. Moreover, several financial techniques are new and not mainstream. Work with your audience and use their language.
Incorporate Relevant Examples
Since giving financial presentations is math-related, incorporate relevant examples into presentations.
In school, some children develop fears of math. Thus, educators try to make the subject relevant to real life. Financial managers can use the same strategy.
If you found that extended stay accommodations make more fiscal sense than booking hotel rooms, explain why with examples. Of course, you’ll incorporate the math. Then, show how corporate travel managers can use the surplus in other efficient ways.
For example, they can increase the meal allowance for travel construction workers. They can also fly travel nurses in business class instead of coach.
The trick is to make the information make sense to the audience. Sometimes they need irrefutable examples.
Conclusion
Financial management emphasizes analyzing information and data. However, the position also has a built-in sales and public speaking component. To improve your communication skills, understand your audience, avoid using jargon, and incorporate relevant examples.
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