“We’re so complex; we’re mysteries to ourselves; we’re difficult to each other. And then storytelling reminds us we’re all the same.” – Brad Pitt
Let us take a deep dive into the role of Data Storytelling in finance. We will explore the transformative narratives that intertwine with numbers, making complex data accessible and compelling to help build understanding with non-finance stakeholders to help them make informed decisions.
What is Data Storytelling?
No story lives unless someone wants to listen is a famous storytelling quote however with data storytelling in finance and accounting the storyteller will always be guaranteed a fully engaged audience therefore it is imperative that the data storyteller can tell a story that makes sense to the complex data in the numbers.
A data storyteller goes beyond numerical reporting, the storyteller must be able to connect the numbers to the story being told in a way that facilitates understanding across diverse audiences with little to no financial background.
The goal is to allow managers to take action based on these insights.
Why Does Storytelling Excel Over Other Forms Of Organizational Communication?
Through the ages, storytelling has been proven to have a profound impact on the human mind and implementing this communication skill in organizations is highly effective.
Let us take a look at why this method of communication is so effective.
Neural Coupling: Neurobiologists have proven that storytelling activates a function in the brain known as “neural coupling.” In their studies, they found that this process allows listeners to convert the ideas presented in a story into their own ideas and experiences. When storytellers take the time to personalize the story it allows it to be more relatable to the listener and creates deeper neural connections with the audience.
Mirroring Pattern: In these studies, the neurobiologist also found that storytelling creates a mirroring pattern in the brain that leads listeners to experience similar brain activity as each other and the storyteller. This mirroring pattern of shared experience has been proven to help leaders build team understanding and staff motivation toward their job function.
Dopamine Release: A storyteller who can purvey passion in their words will always hold their audience in the grasp of their hands because emotionally charged storytelling triggers the release of dopamine in the brain. Dopamine is a chemical that stimulates memory and enhances the retention of information and leads to the listener being able to better recall the information.
Oxytocin Synthesis: This is the cornerstone in communicating challenging news to employees as oxytocin promotes empathy and cooperation among listeners, creating a sense of reliability and a willingness to work with others.
Storytelling with character-driven narratives induces the synthesis of oxytocin, a neurochemical associated with feelings of safety, kindness, and cooperation.
What Can I Do to Communicate as a Storyteller in Accounting?
To become an effective communicator through the power of storytelling the accountant needs to consider how they will tailor their messages to the audience to make financial data accessible, relatable and impactful. The accountant needs to identify key insights from the numbers and craft compelling narratives with clear structures to capture the listener’s attention.
The storyteller needs to harness the power of storytelling techniques by using their passion, analogies, metaphors, and humanizing data to simplify complex concepts while using data visualization to help build and aid listener understanding.
At the end of the narrative, it is important that the storyteller closes the session using case studies to embed deeper understanding and must then encourage questions from the audience to enhance engagement and check the key points are fully understood.
How To Uncover The Story Behind the Numbers
Finding the story behind the numbers is a skill that requires effort and commitment to develop.
To help you on your journey we have listed below some key steps to help you uncover a compelling narrative in financial reports.
Improve Listening Skills
Effective storytelling begins with active and empathetic listening.
As a storyteller, it is now time to shift your focus beyond spreadsheets and spend time engaging in conversations with individuals across various functions within the organization. This helps the financial storyteller to collect and assess additional context and perspectives on what the numbers truly signify.
To learn more about active listening from Boston University, click here.
To download a Guidebook for Developing Deep Active Listening Skills, click here.
Engage with Others
The power of communicating with the employees of a business cannot be overstated and as accountants, we are known to be a bit more on the introverted side so it is now time to step out of your comfort zone and engage with colleagues from different departments. Taking this approach will provide valuable insights to the accountant into the broader scope of what the financials are saying and help them craft a well-rounded story.
Ask Thoughtful Questions
As a storyteller learning the art of questioning to gain insights as you dig deep into the story behind the numbers will help the accountant storyteller unpack hidden trends and anomalies that could easily form the foundation of the compelling narrative.
Identify Misalignments
When looking at the numbers holistically the storyteller needs to see if they can identify figures that make the business deviate from their preset values and goals. If these trends are found they offer the opportunity for the accountant to devise an insightful story around why this is happening and potential solutions to bring the business back on course.
Craft a Compelling Story
With a list of all the insights gathered from investigating and analyzing the data at hand, it is time for the accountant to put all the pieces together to design and craft a story that will effectively communicate the essence of the numbers for nonfinancial employees.
Take the time to address the exciting and challenging aspects of the numbers using your storytelling techniques to create cohesion and build understanding in the organization.
Example
Lescault and Walderman, an outsourced accounting firm, uncovers a financial narrative for a Law Firm, noting initial success with rising revenue but challenges in escalating operating expenses. Through detailed analysis, trends in monthly performance reveal the need for operational optimization by tracking billable hours and the lawyers KPI’s. Lescault and Walderman craft actionable insights, guiding the law firm to reallocate resources and communicate a strategic resolution, showcasing the power of storytelling with numbers in steering a company toward success.
To learn more about Lescault and Walderman’s outsourced accounting services, click here.
Conclusion
Have you learned how storytelling can capture an audience and most importantly drive action from individuals? We hope so 🙂.
The most important thing to understand is that storytelling through numbers is a skill set that needs to be learned and practiced to make it a highly effective tool in any accountant’s toolbox as the role is changing due to advancements in cloud-based software solutions, automation and AI.
It is time to stand out from the crowd and captivate those around you with the power of your storytelling through numbers as storytelling helps us realize that we are all the same.
To learn more about the power of using Sage Accounting Software to help get the numbers right, click here.
To read our article on the 3 Key Benefits Of Outsourcing Accounting And Bookkeeping For Nonprofit Organizations, click here.
To watch an in-depth video on the power of financial storytelling, click here.
