4 Powerful
Communication
Strategies for Your
Next Board Meeting
T
he current junction of economic stress factors has
must accept the business impact of these
left the corporate boardroom a cauldron for
economic challenges and openly plan through
potentially difficult conversations. Continued inflation1,
changing scenarios to evolve company strategies.
expected Federal Reserve increases to interest rates2,
In doing so, the CFO can shine a light on practical
falling consumer confidence3, and a steep decline in
realities facing the company by bringing their
manufacturing outlook4 have given CFOs a plethora of
real-time reports to the table for the board’s
developing themes to address in board meetings.
consideration, support, and advice.
Still, every meeting the CFO has with the board of
In a volatile and contracting economy, a CFO’s
directors provides opportunities for an insightful
comprehensive and consistent communications
planning session. It can address how companies have
approach with the board is paramount. It is
continued to grow — despite 2022’s volatile economy
critical for successful teamwork and for arriving
— while managing headwinds for future growth. As
finance chiefs examine their daily dashboards, they
CFO Skills Toolkit: Communications
at mutually agreed-upon financial agendas to drive
the company forward.
2
4 STRATEGIES TO AMPLIFY COMMUNICATION
WITH THE BOARD DURING ECONOMIC VOLATILITY
1. CFOs should meet with the C-suite
for a pre-board huddle
CFOs shouldn’t craft a financial overview presentation
revenue, and new business acquisition support the
for the board in a vacuum.
mission. Pre-board meeting conversations should map
Delivering a purpose-driven board meeting and staying
on track starts well in advance. CFOs should meet with
the rest of the C-suite ahead of time to agree on the
out how each respective leader’s directives fit into the
overall mission narrative and how each will contribute
to the presentation in kind.
order and arrangement of the presentation and where it
The CFO’s message brings gravity to the company’s
is appropriate to address financial performance. The
situation, as it is grounded in measured past
CEO sets the tone for the company’s overall mission and
performance and a calculated expectation of future
strategy. The CEO’s colleagues will have the opportunity
outcomes. Use this advance time to update the
to provide context on how finance, operations, sales
management team on any changes in the company’s
financial performance or changes in future projections.
Pre-board meeting
conversations should map out
how each respective leader’s
directives fit into the overall
mission narrative and how
each will contribute to the
presentation in kind.
Ultimately, the CFO’s presentation should dovetail with
the CEO’s strategic vision to be presented.
These pre-board meeting huddles will also allow the
C-suite to hash out unmet performance expectations
and prepare in advance to receive hard questions
from the board. If the previous reporting period’s
financials failed to meet projections, the CFO can
prepare with the team to discuss what happened
and how leadership will change course in future
periods, so expectations are met.
CFO Skills Toolkit: Communications
3
2. Finance conversations with the board
should emphasize strategy
CFOs are known for a pragmatic, data-focused approach
allow directors to offer insight based on both the
to company strategy. When they bring their detailed
presentation of historical data and future forecasts.
perspectives to the board, the meetings become an
opportunity to help directors understand the companies’
current financial strategy within the context of the
economic environment. This is furthered when CFOs
After the CEO opens the meeting, the CFO will step in
with high-level data and financial metrics. CFOs should
avoid getting too far in the weeds, but also be prepared
to open up the floor for debate to further break down
the analysis. The lessons go both ways, according
CFOs can benefit from effective
relationships with board
directors ... who can share
external perspectives and act
as a thought leader and
sparring partner.”
to McKinsey5: “CFOs can benefit from effective
relationships with board directors ... who can share
external perspectives and act as a thought leader
and sparring partner.”
These meetings will give CFOs time to discuss a number
of critical strategies, including inflation’s impact on their
organization’s access to capital, pricing adjustments,
and supplier relationships. Boards may provide guidance
McKinsey
on what is blocking the company from access to capital,
revenue growth, or freeing up cash to remain liquid.
Conversations with the board are a good place
to explore specific strategic actions and tap
into the collective strategic minds of the
audience. Some might include:
• D
iscussing the pros and cons of a
potential merger and acquisition.
• A
nalyzing an opportunity for a future
investment, or a need for a future
cash infusion.
CFO Skills Toolkit: Communications
• D
iscussing whether the company
should increase headcount to support
growth initiatives, and what that would
mean for the company’s financial reporting
and near-term and long-term profit margin.
• R
eviewing a technology roadmap and
exploring benefits.
• D
iscussing the value and approach
to environmental, social and
governance initiatives.
4
3. Prepare the board for transparent and
ongoing coversations
Communication between the C-suite and board should
Landon Cortenbach, CFO at MSH, a global talent
happen regularly so that actions and decisions are
advisory firm.
never a surprise. That transparent dialogue will benefit
from an ERP system6 that provides dashboards that
allow the board and executives to see the same
real-time information ahead of a meeting. Then the
meeting can be more about an informed discussion,
based on financials, to determine the next steps to
The guiding principle for me,
regardless of the audience, is
authenticity and transparency.”
improve the business.
“The guiding principle for me, regardless of the
Landon Cortenbach, CFO at MSH
audience, is authenticity and transparency,” said
Board meetings don’t need to be a one-way
street of information. CFOs can also bring
complex questions to the table and allow the
board to discuss areas that might need
clarification. Such questions might include:
• Is the company using the right key performance
indicators (KPIs)?
• Is the company becoming too reliant on too few
revenue streams? Should revenue diversification
become part of strategy?
• W
hat financial risk do board members see from
their perspective?
CFO Skills Toolkit: Communications
5
4. Practice your
presentation and
make it accessible
A finance chief’s presentation must be crafted for each
situation so that the board can help solve problems and
provide insights. CFOs should rely on a predictable
presentation format so the board can anticipate the flow
of the meeting, but also set a tone appropriate to the
circumstances of the message.
Clear communication from the CFO will let board
members understand how the company is doing and
what decisions executives are evaluating. Information
should be timely, accurate, and within the range of
expectation; there should be no surprises.
Cortenbach offers this advice:
“I try to lead with contextually relevant
information that is synthesized in a way
where I’m not overly taxing their brains to
understand it. That’s always the key for me,
because if I’m diverting them from having an
open dialogue to solve business problems
into trying to understand what I’m saying —
in a deck or a financial report — then we’ve
lost the importance of the meeting.”
CFO Skills Toolkit: Communications
6
CONCLUSION
A good board covers a diversity of expertise and
experience that supplements the wisdom of executives.
“I’ve had boards that were highly financially astute. They
wanted to get really deep into certain [finance-specific]
things,” said Cortenbach. “But I’ve had others where
they cared more about the high-level perspective.”
Respecting these differences can additionally facilitate
the relationships and interpersonal dynamics between
the CFO and the board members.
I’ve had boards that were
highly financially astute. They
wanted to get really deep into
certain [finance-specific]
things. But I’ve had others
where they cared more about
the high-level perspective.”
Board members are aware of the current economic
challenges and will likely have rich experience dealing
Landon Cortenbach, CFO at MSH
with previous cyclical challenges. Talking to your board
— often — is good for business. Keep communication
lines open and utilize them often.
Navigate potential pitfalls
• T he meeting agenda is sacrosanct.
Respect everyone’s time and
expectations for the meeting.
• Y
our C-suite team has a scripted playbook
for a reason. But, be prepared to answer
questions if the board asks them.
CFO Skills Toolkit: Communications
• R
emember “The Godfather” – “Mr. Corleone
is a man who insists on hearing bad news
immediately.”7 Give the board ample time to
react, digest, ask questions, and help develop
a path forward in an adverse economic climate.
• N
o surprises! Consider presenting any
unusual news individually before the meeting.
7
SOURCES
1
https://www.bls.gov/cpi/latest-numbers.htm
5
ttps://www.mckinsey.com/capabilities/
h
strategy-and-corporate-finance/our-insights/
how-cfos-can-better-support-board-directorsand-vice-versa
2
https://www.cmegroup.com/trading/
interest-rates/countdown-to-fomc.html
3
https://www.conference-board.org/topics/
consumer-confidence
6
https://www.netsuite.com/portal/products/
erp/financial-management.shtml
4
https://www.newyorkfed.org/survey/empire/
empiresurvey_overview.html
7
ttps://www.imdb.com/title/tt0068646/
h
quotes/qt0361879
CFO Skills Toolkit: Communications
8
For more than 20 years, Oracle NetSuite has helped
organizations grow, scale, and adapt to change. As the
#1 Cloud ERP, NetSuite provides an integrated system
that includes financials/ERP, inventory management,
HR, professional services automation, and omnichannel
commerce, used by more than 32,000 customers in
217 countries and dependent territories.
Learn more about NetSuite and supply chain
management solutions here. Like us on Facebook, and
follow us on LinkedIn, Instagram, and Twitter.
Learn More