When to not focus on the data

I was sharing war stories with one of my collaborators this week. An interesting story emerged where ‘poor communication' cost a chief financial officer (CFO) his job.

Why?

Because he focused on the data.

Let me explain.

The CFO assumed his role was to provide regular and accurate numbers that the CEO and Board would not just read, but also interpret.

However, the CEO and the Board wanted insights about the company's performance.

This material disconnect cost him his job as the leadership did not see that the company was in major difficulty until late in the piece.

So, what went wrong here?

While I agree that a CFO has a responsibility to explain what the performance data means, I also see a systemic issue that goes beyond the CFO himself. This could have been avoided if

•  The CEO and Board asked better questions inside and outside formal Board meetings
• The company secretary clarified expectations that insights were central to the financial reports when the CFO took the role on years previously
• The CEO and the Chair called out the lack of insight in the papers as a general expectation
• The Board did not accept that poor quality papers are commonplace and too hard to fix

I offer this as a cautionary tale.

Quality governance and decision making requires insightful communication both inside and around key papers.

Assuming that the data is enough, or that poor quality papers is ‘par for the course' is not just a risk for you but also for the organisation.

I hope that helps. More next week.

Kind regards,
Davina

Cutting Through Podcast Now Live

Last week I launched my new podcast, Cutting Through.

My first two posts, a short intro and an interview discussing how to get around one of the biggest challenges when communicating about risk management.

My guest, Anthony Wilson from ABM Risk Management shares deep wisdom stemming from decades in risk and assurance.

He also offers his comprehensive risk management framework.

Listen on your favourite podcasting app or here on my website.

PS – Apologies to those of you who may tried to find it on Spotify, Apple and Google Play last weekend. The episode took longer to publish than we expected.