5 Storytelling Tips for CFOs

Picture this scenario: You're at the helm of a ship navigating the turbulent seas of enterprise finance. Your charts and graphs are your compass, guiding you through the storm. But to truly lead, you need more than just data. You need a story that inspires confidence and clarity.

As a chief financial officer (CFO), you can master the art of storytelling to turn your financial insights into powerful narratives that steer your company toward success. Here are five storytelling tips for CFOs to help you chart your course.

1. Use the Hero's Journey and Other Storytelling Arcs

Popularized by Joseph Campbell, the hero’s journey is a storytelling framework that outlines a common narrative arc found in many myths, legends, and stories. The framework typically consists of 12 stages:

1. The Ordinary World: The hero's normal life before the adventure begins.
2. The Call to Adventure: The hero faces a challenge or receives a call to action.
3. Refusal of the Call: The hero initially hesitates or refuses the challenge.
4. Meeting the Mentor: The hero encounters a mentor who provides guidance.
5. Crossing the Threshold: The hero commits to the adventure and enters a new world.
6. Tests, Allies, and Enemies: The hero faces challenges, makes allies, and confronts enemies.
7. Approach to the Innermost Cave: The hero prepares for a major challenge.
8. The Ordeal: The hero faces a significant crisis or challenge.
9. The Reward: The hero achieves a victory or gains a reward.
10. The Road Back: The hero begins the journey back to the ordinary world.
11. The Resurrection: The hero faces a final test and emerges transformed.
12. Return with the Elixir: The hero returns home with newfound wisdom or a reward.

Why Should CFOs Use the Hero's Journey for Storytelling?

1. Engages the Audience: The hero’s journey is a familiar and compelling structure that resonates with audiences. By framing financial data within this narrative arc, CFOs can capture the attention of stakeholders and create more engaging presentations.

2. Provides Context: This framework helps CFOs provide context to data. For example, the "Call to Adventure" could represent a new market opportunity, while the "Ordeal" might be a significant financial challenge the company faced. By mapping data to these stages, CFOs can illustrate the journey and the strategic decisions made along the way.

3. Highlights Transformation: The hero’s journey emphasizes transformation and growth. CFOs can use this emphasis to highlight how the company has evolved, overcome challenges, and achieved success. Regarding impact, this narrative can be particularly powerful in demonstrating the impact of financial strategies and decisions.

4. Simplifies Complex Information: Complex financial data can be overwhelming. With the hero’s journey, CFOs can provide a clear structure that simplifies this information, making it easier for stakeholders to understand and follow the story.

5. Creates Emotional Connection: Stories are a powerful way to create an emotional connection with the audience. By using the hero’s journey, CFOs can humanize data and make presentations more relatable and memorable.

Example Application

Here’s what presenting a financial report using the hero’s journey could entail:

• Ordinary World: The company's financial status at the beginning of the fiscal year.
• Call to Adventure: Identifying a new market opportunity.
• Refusal of the Call: Initially hesitating due to financial risks.
• Meeting the Mentor: Consulting with industry experts and advisors.
• Crossing the Threshold: Committing resources to pursue the opportunity.
• Tests, Allies, and Enemies: Navigating market challenges and forming strategic partnerships.
• Approach to the Inmost Cave: Preparing for a major product launch.
• The Ordeal: Facing a significant financial setback.
• The Reward: Achieving a successful product launch and increased revenue.
• The Road Back: Consolidating gains and planning for future growth.
• The Resurrection: Overcoming final challenges and emerging stronger.
• Return with the Elixir: Sharing the success story and lessons learned with stakeholders.

By using this framework, CFOs can transform financial data into compelling narratives that both inform and inspire the intended audiences.

2. Choose the Right Communication Medium

Balancing the various communication mediums available to CFOs requires strategic thinking and adaptability. Here are some tips to help CFOs effectively navigate and choose the right medium for their messages:

1. Understand the Audience and Purpose

Before selecting a medium, consider the audience and the purpose of the communication. Here are a few examples:

• Quarterly Earnings Call: This call is a formal setting where clarity and precision are paramount. Accordingly, a well-prepared speech supported by detailed financial reports and visuals is essential.
• Board Meeting: Such meetings are typically more interactive, requiring a mix of presentations, discussions, and Q&A sessions. For this audience, a combination of slides, handouts, and real-time data dashboards are ideal.

2. Leverage the Strengths of Each Medium

Different mediums have different strengths. Choose the medium that best suits the message you want to convey:

• Graphics and Visuals: Ideal for simplifying complex data and highlighting key trends. Use graphics and visuals in presentations and reports.
• Emails: Great for detailed, written communication that stakeholders can refer to later as needed. Use emails for follow-ups and detailed explanations.
• Phone Calls: Useful for quick, direct communication and clarifying urgent matters. Use phone calls for immediate issues or personal touchpoints.
• Speeches: Effective for inspiring and motivating large groups. Use speeches for major announcements and strategic updates.

3. Adapt to the Context

Sometimes, the context dictates the medium. For example, during a crisis, a phone call or video conference might be more appropriate than an email to convey urgency and empathy. In contrast, a detailed financial analysis is best presented through a comprehensive report or presentation.

4. Combine Mediums for Maximum Impact

Often, the most effective communication strategy involves multiple mediums. For instance, after a quarterly earnings call, follow up with an email summarizing key points and providing additional resources. During a board meeting, use a mix of visuals, real-time data, and verbal explanations to keep the discussion dynamic and engaging.

5. Be Consistent and Clear

Regardless of the medium, consistency and clarity are crucial. Ensure your message is coherent across all platforms. For example, the key points discussed in a speech should align with both the data presented in the report and the follow-up email.

Example Scenario

Here’s an example scenario involving a quarterly earnings call followed by a board meeting:

• Quarterly Earnings Call: Prepare a clear, concise speech supported by a detailed slide deck with key financial metrics and trends. Use visuals to highlight important data points.
• Follow-Up Email: Send an email to stakeholders summarizing the call, including links to the full report and any additional resources.
• Board Meeting: Use a combination of real-time data dashboards, printed reports, and a verbal presentation to facilitate discussion and decision-making.

By strategically choosing and balancing the right communication mediums, CFOs can ensure messages are effectively conveyed, understood, and acted upon by the intended audiences.

3. Use Real-Time Data to Make Your Point

Using real-time data in communications is crucial for CFOs as it enhances accuracy, relevance, and engagement. Here are some key reasons CFOs should leverage real-time data and how doing so improves storytelling:

Why CFOs Should Use Real-Time Data

• Enhanced Decision-Making: Real-time data provides CFOs with up-to-the-minute insights, allowing for faster informed decisions. This enhanced decision-making is particularly important in today's fast-paced business environment, where timely decisions can significantly impact the company's success.
• Increased Transparency: Access to real-time data fosters transparency and trust among stakeholders. By providing current and accurate information, CFOs can demonstrate their commitment to openness and accountability.
• Improved Accuracy: Real-time data reduces the risk of errors associated with outdated or static data. This improved accuracy ensures the information presented is precise and reliable, which is essential for maintaining credibility.
• Agility in Response: In a volatile market, the ability to pivot quickly is crucial. Real-time data allows CFOs to adapt their strategies promptly in response to changing conditions, enhancing the company's agility.

How Real-Time Data Helps Storytelling

• Timely and Relevant Narratives: Real-time data ensures the stories CFOs tell are current and relevant. Timely, relevant data makes the narrative more compelling and relatable to the audience as the data reflects the latest developments and trends.
• Dynamic Presentations: Incorporating real-time data into presentations can make them more dynamic and engaging. For example, using live dashboards or interactive visuals allows stakeholders to explore the data in real time, fostering a more interactive and insightful experience.
• Contextual Insights: Real-time data provides context to the numbers, helping CFOs explain the “why” behind the figures. These contextual insights can be particularly useful in illustrating how recent events or decisions have impacted the company's performance.
• Predictive Analytics: Leveraging real-time data enables CFOs to use predictive analytics, which can forecast future trends and outcomes. The use of predictive analytics adds a forward-looking dimension to the narrative, helping stakeholders understand potential future scenarios and strategic directions.

Example Application

Here’s an example application on how to present a quarterly financial report using real-time data:

• Timely Insights: Highlight the latest revenue figures and explain how recent market trends have influenced these numbers.
• Dynamic Visuals: Use live dashboards to show real-time cash flow and expense tracking, allowing stakeholders to see the data evolve during the presentation.
• Contextual Storytelling: Provide context by explaining how recent strategic decisions, such as a new product launch, have impacted financial performance.
• Predictive Analytics: Use real-time data to forecast future revenue and growth, illustrating potential scenarios based on current trends.

By integrating real-time data into communications, CFOs can create more accurate, engaging, and impactful narratives that resonate with audiences and drive strategic alignment.

4. Leverage Hard-Hitting Visuals

Every CFO has access to excellent charts and graphs, but the most effective ones know how to apply nuance and storytelling to these visuals. Here’s how CFOs can leverage hard-hitting visuals for enhanced storytelling:

1. Highlight Key Metrics with Interactive Dashboards

Why It Matters: Interactive dashboards allow CFOs to present data dynamically, making it easier for stakeholders to explore and understand key metrics.

How to Apply: Customize dashboards to highlight critical financial metrics, trends, and anomalies. For example, use a dashboard to show real-time revenue growth, expense tracking, and cash flow. This interactive approach engages stakeholders and provides a deeper understanding of the financial narrative.

2. Use Drill-Down and Drill-Back Capabilities

Why It Matters: These features enable CFOs to provide detailed insights into specific data points, making complex information more accessible.

How to Apply: When presenting a sudden spike in expenses, use drill-down capabilities to show a detailed breakdown of costs. The breakdown helps stakeholders understand the reasons behind the numbers and the context of financial decisions.

3. Add Context with Visual Overlays

Why It Matters: Visual overlays can add important context to the data, making it more relatable and easier to understand.

How to Apply: Overlay historical data with current performance to illustrate growth or identify areas for improvement. This visual context helps stakeholders see the bigger picture and understand the strategic implications of the data.

4. Integrate Real-Time Data

Why It Matters: Real-time data ensures the information presented is current and accurate, which is crucial for making timely decisions.

How to Apply: Use real-time data in dashboards and reports to show live updates on financial performance. Using life updates keeps stakeholders informed and engaged, demonstrating transparency and commitment to accuracy.

5. Balance Technical Data with Visual Metaphors

Why It Matters: Balancing technical data with visual metaphors creates a more engaging, memorable narrative.

How to Apply: Incorporate visual metaphors to simplify complex concepts. For example, use a rising arrow to symbolize growth or a lightbulb to represent innovation. Complement numerical data with stories of customer success or employee achievements to humanize the data and create a more engaging narrative.

By leveraging these strategies, CFOs can transform their financial data into compelling narratives that resonate with audiences. These nuanced approaches to visuals will help communicate more effectively and drive strategic alignment — whether CFOs are presenting to the board, investors, or internal teams.

5. Use Advanced Storytelling Skills

CFOs have lots of charts and graphs and plenty of technical details to convey to non-finance people. To bridge the gap, CFOs can use the following skills.

1. Use Similes and Metaphors

Why It Matters: Similes and metaphors can make complex data more relatable by comparing it to familiar concepts.

Examples:

• Emphasizing Scale: "Our financial performance is like a skyscraper rising above the cityscape, towering over previous records."
• Illustrating Complexity: "Our approach to managing finances is like a complex ecosystem, where every element interacts to maintain balance and growth."

2. Use Real-Life Examples and Anecdotes

Why It Matters: Real-life examples and anecdotes can humanize data and make it more relatable.

Examples:

• Customer Success: "One of our key clients saw a 20% increase in sales thanks to our new product line."
• Employee Achievements: "Our team worked tirelessly to streamline operations, resulting in a 15% reduction in costs."

3. Highlight Key Takeaways

Why It Matters: Summarizing key points helps ensure the audience remembers the most important information.

Examples:

• Revenue Growth: "The key takeaway is that our revenue grew by 10% this quarter, driven by increased sales and market expansion."
• Cost Management: "The main point to remember is that we successfully reduced costs by 15%, improving our overall financial health."

By incorporating these storytelling techniques, CFOs can make financial data more accessible and engaging for non-finance audiences. This approach enhances understanding and fosters a deeper connection with the information being presented.

What’s Next?

Ultimately, effective storytelling drives strategic alignment, inspires confidence, and leads to more informed decision-making — steering the company toward sustained success. CFOs can leverage frameworks like the hero’s journey, choose the right communication mediums, and integrate real-time data. By taking these actions, CFOs can transform financial insights into compelling narratives that resonate with diverse audiences. These strategies enhance understanding and foster trust and engagement among stakeholders.

Looking for more forward-looking insights for CFOs? Check out our eBook titled 2025 Economic Outlook: A CFO’s Guide to Strategic Growth.