2 Excel Templates

1) ​​Inventories Planning Template

​Click here to get your Excel template​

The model can be adjusted very easily to any company. This template is resulted by a full reporting package, forecasting files and schedules. I do not share such templates this time, I focus just on the importance of presentation.

2) Salaries and Headcount Forecast Model​​

​Click here to get your Excel template​

This model, with small adjustments can be used for many industries.

2 Infographics:

1) Management Reporting Snapshoot​​

​Get this infographic on a high-resolution PDF​​​​​​​​​​​​​

2) EBITDA Margin vs NP Margin vs FCF Margin new

​​​Get this infographic on a high-resolution PDF​​​​​​​​​​​​​

Here’s today’s “How to” guide:​​​​

How to effectively communicate report findings to non-finance executives

Communicating financial report findings to non-financial stakeholders requires a simplified, context-driven, and visually appealing approach.

The focus should be on presenting the data in a way that connects with the business implications and supports informed decision-making.

Here are some strategies:

  1. Understand Your Audience’s Needs and Perspective:
    • Identify who your audience is (e.g., board members, sales team, operations).
    • Understand their priorities and the decisions they need to make.
    • Tailor your message to their level of financial literacy and focus on the most relevant insights.
  2. Start with Key Messages and Executive Summary:
    • Begin by highlighting the most critical findings.
    • Use a concise executive summary to outline key performance indicators (KPIs), major variances, and business implications.
    • Summarize financial health, trends, and whether targets were achieved in simple terms.
  3. Connect Financial Metrics to Business Drivers:
    • Explain what the numbers mean for business operations, such as:
      • “Revenue increased by 10% due to the successful launch of a new product line.”
      • “Cost of Goods Sold (COGS) increased, reducing margins, largely due to higher raw material prices.”
    • Use comparisons, such as year-over-year or budget vs. actual, to provide context.
  4. Use Visuals and Simplified Charts:
    • Employ visual aids like graphs, charts, and dashboards to break down complex information.
    • Use simple bar charts, pie charts, and line graphs for trend analysis.
    • Limit the amount of text and focus on visuals to highlight key takeaways.
  5. Focus on the ‘Why’ and the ‘What Now’:
    • Go beyond numbers by explaining the reasons behind variances
    • Discuss implications and potential action plans to address the issues or capitalize on positive trends.
    • Offer insights on what actions are required: “To improve profitability, consider reducing operational expenses by 5%.”
  6. Use Storytelling to Build a Narrative:
    • Create a story around the financials to make the data relatable.
    • Structure your presentation like a story with an introduction (overview), a body (findings and analysis), and a conclusion (recommendations).
    • Explain the causes and effects using simple language, avoiding jargon and technical terms.
  7. Highlight KPIs and Link to Business Goals:
    • Showcase a few critical KPIs that are aligned with business goals.
    • Use traffic light systems (red, yellow, green) to indicate performance against targets.
  8. Avoid Overloading with Data:
    • Stick to the key points and avoid overwhelming your audience with excessive details.
    • Present only the data that supports your main message or that helps to make a decision.
  9. Be Prepared for Questions and Follow-ups:
    • Anticipate potential questions from non-financial stakeholders and have simplified explanations ready.
    • Use analogies or comparisons to further clarify complex concepts.

Practical Communication Example:

Let’s say you need to explain a revenue decline of 5% to a non-financial stakeholder:

Before: “Revenue declined by 5% compared to the budget. The volume variance contributed to -2% and the price variance contributed to -3%.”

After: “Revenue fell short by 5% compared to our target. This is primarily due to a 3% drop in product prices and a 2% decrease in sales volume. The price reduction was driven by increased competition, and we saw lower demand for our premium products. To address this, we recommend reviewing pricing strategies and increasing marketing efforts for high-margin products.”

By applying these strategies, you can effectively communicate financial information in a way that resonates with non-financial stakeholders, ultimately facilitating better understanding and decision-making.