It can be very challenging to communicate effectively to a diverse group with varied points of view.   •    

By Marc P Palker   •     

Having held a CFO position for many years, I’ve seen my fair share of boards and understand the challenges associated with effectively communicating to a diverse group with varied points of view. Some CFOs and other senior managers might find the experience frustrating, but fear not!

Here are some tips to make it less challenging for all finance leaders to successfully work with the board:

Don't kill them with data.

Boards are there to strategically direct management for success and growth – overwhelming them with data will get them in the weeds and off the strategic path.

Effectively communicate issues facing the company.

Keep your key messages short, sweet and to the point. The board needs to receive clear and concise information regarding issues facing management and the company. Being clear and concise ensures the board that they have the quality information they need to make quick and accurate decisions.

Provide high-level updates on company initiatives.

High-level reports on company initiatives invite questions from the board. This prevents managers from anticipating every question. For example, a high-level update on new software development allows the board to understand progress, or lack thereof. Based on their concerns, board members can submit specific follow-up questions. This helps managers in that specific questions are easier to address and then they’re able to provide appropriate and strategic recommendations and solutions.

Hold one-on-one discussions.

Go out of your way to connect with board members who have deeper experiences in specific areas of business (e.g., compliance, risk, innovation, etc.) or industries. You’ll build a relationship and learn valuable information in the process.

Use outside subject matter experts (SMEs).

SMEs are important because they possess authority in a particular area. The use of outside SMEs can support senior managers (when putting together detailed presentations, for example) when an unfamiliar business opportunity or situation arises.

After years spent interacting with directors, I’ve identified two different types of boards: hands-on and hands-off. Of course, these tips relate to the “hands-off” boards who work strategically to enhance shareholder value.

Truthfully, directors and the boards on which they serve only become “hands-on” when a serious issue arises. My advice to the CFO who has a “hands-on” (also known as “day-to-day”) board: good luck!

Marc P Palker, CMA, CSCA, is principal of MPP Associates, Inc., a consulting firm primarily engaged in consulting to companies on accounting and financial matters, and former Chair of the Global Board of Directors of the Institute of Management of Accountants.