Advertisement
Advertisement
shutterstock-77289808
ATD Blog

Leading Executive Conversations: Numbers Need Context, and So Do I!

Monday, October 6, 2014
Advertisement


Recent interviews and surveys with executives and mid-level managers revealed a recurring theme when presenting numbers. Numbers need context, and so do executives! 

One manager shared her experience of presenting quarterly numbers. Time and time again, her CEO would look up and say, “So what?” She learned he was asking for context around the numbers to help him understand whether they were increasing, declining, or simply staying the same. The same number means different things with different context. 

When executives have context around numbers, data becomes impactful and useful to them. That’s when they will begin to incorporate your ideas or sound bites into their own messaging. When your sound bites are valued enough to be repeatable, you will be valued as a resource. 

As you collect data points for executive-level conversations, here’s how to think about numbers.

Numbers provide a definitive answer for a single moment in time. But in order for them to have impact, you have to show a relationship between them, such as a span of time or a trend in growth. It’s much easier to understand numbers when there is comparison—or context—around them. Numbers are typically combined with other elements to obtain a better understanding of what a single measurement offers. 

It should come as no surprise that managers in the finance department are some of the first individuals to get exposure to the C-Suite because they track measurements and important data points. Financial managers often forget that numbers are really a means to an end, rather than the end itself. Numbers report business outcomes, but when provided alone, they don’t offer enough information to understand a missed or an exceeded outcome.

Advertisement

For example, a finance manager preparing for a quarterly discussion with a CEO might come in prepared to show how revenue grew by 15 percent. Imagine a chart that shows a number, how that number increased or dropped from the previous quarter, and maybe even a comparison to the same quarter last year.

What the CEO really wants to know, and will be likely to ask during this conversation is:

  • How did we grow by 15 percent? And, what factors do you think most directly contributed to our growth?
  • Across our product line, did some products perform better than others?
  • Was the growth driven organically, or were there elements in the marketplace that contributed to it?
  • What did our competitors do for this same quarter?
  • Based on this increase, what do you expect we will do next quarter?

Given the number you reported, all of these are valid questions. They provide the context that addresses the business decisions and projections the executive will try to make based on the financial data. 
As one executive we interviewed said, “Make sure numbers align with business goals. Keep numbers shared with top executives fairly simple, so they can see the alignment without having to review chart after chart of data in search of context.” 

Advertisement

Any audience will respond to numbers when the numbers are compelling. For example, “Our earnings have increased by 15 percent. That 15 percent, while small on this chart, is the same as three months’ worth of expenses in our research division. So, essentially, we earned ourselves a free quarter of research!” 

Now, that’s repeatable! It gives context and helps the executive put magnitude to the number. Data has to get to outcomes, and measureable outcomes help executives make business smart decisions. That's a win-win for both managers and executives alike.

Editor’s Note: This post is based on Sally Williamson’s new book, Leading Executive Conversations, which discusses a variety of topics essential to conducting successful executive-level conversations. Visit the website to download three chapters (for free)! 


About the Author

Sally Williamson is president and founder of Sally Williamson & Associates. She specializes in executive coaching and developing custom workshops for groups that focus on improving spoken communication skills, ranging from formal presentations to everyday communication, as well as selling situations.  She coaches interpersonal communication skills, helping individuals improve their executive presence and overall impressions; [email protected].

Be the first to comment
Sign In to Post a Comment
Sorry! Something went wrong on our end. Please try again later.