Improving your communication style: presenting financial information in tough economic times.

• Author: Forbis, Jimmy
• Position: Solutions

During challenging economic times, finance leaders must be able to convey financial information to stakeholders in a way that reduces anxiety and prevents overreaction. At the same time, the information must be direct, clear, and concise, stating the facts that are known at the time. In other words, finance officers need to be the voice of financial reason when the situation feels chaotic and uncertain. Two crucial factors in how the message will be received are the level of credibility of the person delivering the data and that person's communication style.

Feedback received in GFOA classes such as Managing the Budget Process, Long-Term Financial Planning, and Financial Policies indicates that three themes are important to finance officers across the United States and Canada: 1) the need for financial leaders to step up; 2) better knowledge about setting the stage and making use of basic skills to do so; and 3) the best ways to communicate the message in a way that the lay person can understand and appreciate. This article will describe the last theme in more detail.

DEVELOPING CREDIBILITY

While there are many excellent resources on how to implement best practices and manage finance organizations, there isn't a lot of information available on how to develop credibility as a government finance leader. Credibility is not a given; it is not conferred by a job title, but strengthened by experience over time. To earn it, individuals must prove that they can successfully handle difficult situations while being tactful, diplomatic, and honest. Even one instance of failing to verify facts or statements can cause you to lose your credibility.

Building strong and lasting credibility as a finance leader requires successes over time. When you reach this point, policy makers, management leadership, community members, and staff will believe your statements and follow your suggestions and projections. But if you don't have credibility, or if you lose it, your attempts to work with others to get things done in the future will likely become difficult.

FISCAL POLICIES VERSUS FISCAL PRINCIPLES

Finance professionals often work in environments that are highly technical, and they tend to use language that has evolved from their own understanding of financial rules and policies. Converting technical jargon into non-technical language that other audiences can comprehend can be a significant undertaking. However, financial policies--the foundation of any government finance operation, typically written to provide technical rules to financial professionals--are meant for a diverse group of stakeholders. To address this issue, consider converting your organization's financial polices into financial principles for you and for the entire organization.

A policy is a course of action an organization adopts or proposes; in essence, it is a rule directing a course of action that must be adhered to. In its most extreme definition, it is a rule that cannot be broken without significant consequences or repercussions. A principle is a fundamental or general truth that helps in determining the appropriate course of action. Princi-ples provide an indication of what to do and why, but not how. Principles don't usually have consequences...