What do you do if your boss doesn't understand your financial analysis? (2024)

When presented with a situation in which your boss does not understand your financial analysis, clarifying issues is essential. Rather than heading further into complicated language or technical information, it is crucial to break down the analysis into feasible, available portions. Begin by determining the most significant points and then laying them out in a clear and brief manner. Use visual aids such ascharts, graphs, or brief overviews to effectively present your findings. In short, reducing topics not only enables easier communication, but it also develops a collaborative environment in which you and your boss can effectively utilise financial information to drive informed decision-making.

Simplifying the concept and terminology used is helpful, so your boss can understand your financial analysis. Using plain language can allow for everyone to understand and your data can be backed up via visual data if needed. Sticking to your key point allows for the most important findings to be highlighted too, which can be backed up by provided context. Using real-life examples can allow for the concepts to be conveyed clearer. Questions and feedback should be encouraged for your boss to have the opportunity to have further clarification.

It's important to approach the situation tactfully and proactively. Here are some tips:1.Simplify and Explain. Avoid using jargon or complex technical language unless necessary and provide clear explanations for each aspect of the analysis.2.Use Visual Aids: Incorporate visual aids such as charts, graphs, and tables to illustrate key points and trends in your analysis. Visual representations can often make complex financial data more accessible and understandable.3.Provide Context: Connect the analysis to broader business goals and strategies to demonstrate its relevance.By taking these proactive steps, you can improve understanding of your financial analysis and foster a more productive working relationship.

Starting with WHY your analysis is important is key to incentivise your boss to try their best to stick it out, especially when the analysis maybe complex or confusing, or if your boss has a different opinion. Where possible use a $ figure to make it tangible.Using the Elaboration Likelihood Model is also a good framework to figure out how much of an uphill battle you will face. Motivation (what makes you such asn expert that they should listen or trust you), Ability (do they have the right background), Time and Effort (do they have other priorities, is it a good time of day) are key factors whether you are likely to persuade someone or not.

Go far from complexity and be simple as you can this is will be the key to solve a lot of issues.Also in many cases offering and present examples make the picture more clear and make the message more easy for understanding.More dialouge, conversation and encourage questions can creat more healthy environment (Ice-breaking) and lead to better communication.Reverse engineering can be helpful here by tarting with summary will provide the whole picture and go further in details levels in need basis.In short read the user need will key the message.

Moreover, encouraging questions is not enough. Predict your boss's questions and prepare the corresponding answers in advance, so that you can provide better understanding immediately when he/she asks questions.Here are related know-how points of mine.Break down your analysis into smaller, more manageable sections. This will help your boss to focus on specific areas of interest.Provide context for your analysis. This will help your boss to better understand the limitations and potential biases of your analysis.Don't be afraid to ask your boss questions to clarify their understanding and their concerns. This can help to build a better working relationship and ensure that your analysis is understood correctly.