Mastering data storytelling: Turning numbers into action

Have you ever felt like you're drowning in a sea of data, desperately searching for that life-saving insight? I know I've been there more times than I care to admit!

I'm Sharon Mahoney, CFO at Le Prix, and I've spent the last eight years navigating the choppy waters of high-growth companies. In that time, I've learned a thing or two about transforming data into compelling stories that drive real change.

In this era of SaaS tools and instant analytics, we're blessed (or cursed?) with more data than we know what to do with. But here's the million-dollar question: how do we cut through the noise and extract actionable insights to propel our businesses forward?

That's exactly what this article will explore. We'll dive into everything from the challenges of data overload to the evolving role of finance in data storytelling, as I share my hard-earned wisdom on the art of data visualization.

Whether you're a seasoned CFO or just starting your finance journey, this guide will equip you with the tools you need to transform your data into powerful narratives that shape the future of your business.

So, grab your favorite spreadsheet (come on, I know you have one), and let's dive in. It's time to turn those numbers into action!

The challenge of data overload

Let's face it: technology has revolutionized how we collect and analyze data. We can get our hands on vast amounts of information at the click of a button.

But more data doesn't always mean better decisions. In fact, I've seen firsthand how an abundance of data can lead to what I call "analysis paralysis."

Picture this: you're using the latest BI tools to create stunning visualizations and data representations. Sounds great, right?

But here's the catch – if that data isn't coming from a single source of truth, you might end up making contradictory decisions based on conflicting information. I've been there, and trust me, it's not a fun place to be.

So, how do we cut through the noise and extract the information that really matters? It all comes down to asking the right questions:

1. What is the data telling us about our wins and failures?

2. How can we use this information to craft strategies for the future?

3. What actionable items can we derive in real-time?

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Remember, our goal isn't just to collect data, it's to use that data to continue our successes and learn from our missteps.

The role of finance in data storytelling

Now, let's talk about our role as finance professionals in this data-driven world. We're not just number crunchers anymore (though Excel will always have a special place in my heart).

Our job is to investigate, understand, and share the stories behind the numbers.

But here's the challenge: we often speak a different language than our colleagues in sales, marketing, or operations. I've lost count of the times I've seen finance teams use jargon that leaves other departments scratching their heads.

I've learned this lesson the hard way. Early in my career, I'd use terms like "EBITDA" and "working capital" in meetings with our sales and marketing teams, only to be met with blank stares.

So, how do we bridge this communication gap?

The key is to tailor your message to your audience and make a conscious effort to speak their language.

When I'm talking to our sales team, I focus on top-line revenue and growth projections. For operations, it's all about efficiency metrics and supply chain KPIs.

The goal is to translate our financial insights into language that resonates with each department.

The art of data storytelling

Now, let's dive into the nitty-gritty of data storytelling. One tool I've found incredibly useful is BI software. It allows us to create visually appealing dashboards that different departments can easily understand and act upon.

For sales teams, I create simple dashboards tracking gross revenue against projections, broken down by customer, channel, or region.

This gives them a clear, real-time picture of their performance without overwhelming them with financial details they may not need.

For operations teams, I focus on metrics like order fulfillment rates, supply chain efficiency, and quality control. The key is to identify the KPIs that truly matter for each department and present them in a clear, visually appealing way.

The power of data visualization

Now, let's talk about the power of visualization. In my experience, everyone appreciates a well-designed chart or graph; after all, we're in retail for a reason!

But it's not just about making things look pretty. The goal is to make complex data instantly understandable and actionable.

However, a word of caution: don't let the pursuit of pretty graphics overshadow the substance of your data. A beautiful dashboard that no one understands is just digital art.

Make sure your visualizations clearly communicate the key points and help drive decision-making.

Use examples

Lastly, don't underestimate the power of real-world examples in your data storytelling. Whenever I present data, I try to include anecdotes or case studies that bring the numbers to life.

It could be a success story from another company in our industry, or a cautionary tale of what happens when data is ignored.

These stories make the data relatable and memorable, increasing the likelihood that it will actually influence decision-making.

Ethical implications in data analysis

Now, let's talk about something that doesn't get enough attention in our field: the ethical implications of data analysis.

As finance professionals, we have a responsibility to ensure that our data analysis is not only accurate but also comprehensive and unbiased.

I've seen situations where different departments request analyses that support their specific agendas. While this is understandable, it can lead to a siloed perspective that doesn't serve the company's overall interests.

Let me share a story that illustrates this point. In a previous role, we were heavily invested in a new distribution strategy.

The CRO had conducted an analysis showing great revenue and margins, justifying further investment and operations used company-wide averages to show how much we were shipping, painting a rosy picture of growth.

But something didn't add up.

So, I dug deeper, conducting an order-level economic analysis. Lo and behold, we discovered that this channel was actually highly unprofitable when we accounted for product costs and inbound shipping specific to this strategy.

This experience taught me the importance of looking at the whole picture. As finance professionals, we need to be the voice of reason, ensuring that our analyses tell the complete story, not just the parts that certain stakeholders want to hear.

Conclusion

As we wrap up, I want to leave you with a key takeaway:

Don't let data overwhelm you, try to remember that your role goes beyond number-crunching. You're a storyteller, translating complex financial data into narratives that inspire action and drive change.

As we look to the future, the ability to effectively analyze and communicate financial data will only become more crucial. By mastering the art of data storytelling, we can position ourselves as key strategic partners in our organizations.

So, the next time you're faced with a spreadsheet full of numbers, ask yourself: what's the story here? How can I communicate this in a way that inspires action?

That's where the real magic happens.

This article comes from Sharon Mahoney’s brilliant talk, ‘How to transform financial data into compelling stories that inspire action and change’, at our Boston FP&A Summit.

Mastering data storytelling: A CFO's guide to turning numbers into action