Four ways new CFOs can improve board communications

It’s not just what CFOs say but also how and when that messaging is delivered that can make the difference with board members.

When presenting to the board or audit committee, CFOs should know how to adjust their message to their audience

For CFOs new to the role, presenting to their company’s board of directors is an essential skill, one that can take years to master. Communicating with the board, of course, starts with a clear understanding of what information directors want and need to hear, delivered with the right level of detail to be effective. But even then, CFOs need to know when and how to pivot should meeting discussions take unexpected turns or when a message doesn’t hit its mark.

Essential board communication practices were in focus at the Deloitte CFO program’s recent Next Generation CFO Academy, in a session led by Pete Shimer, a partner at Deloitte US and senior advisor to the CEO, and Teresa Briggs, a board member at Snowflake, DocuSign, Warby Parker, and ServiceNow. During their presentation to senior finance executives who may aspire to reach the ranks of CFO, they addressed how to best influence board members and navigate tricky situations.

Know Directors’ Role, Strengths, and Gaps

Teresa Briggs

It’s important to know your audience. For CFOs, that means understanding the board’s role in governance and oversight. “Board members work for shareholders and need to be as independent as possible,” said Briggs, a retired partner at Deloitte US and former Deloitte board member. “At the same time, the board is there to help management succeed.”

Modern boards act as fiduciaries to help protect the interests of the stakeholder and the assets of the company, oversee the company strategy, risk appetite, capital allocation, and long-term value creation. They also help uphold good governance practices and oversee strategy development and performance, as well as lead CEO succession and compensation to align management interests with the stakeholder. Audit committee responsibilities typically include oversight of financial reporting, risk, ethics and compliance, and internal and external audit, with the CFO typically serving as the lead management liaison.

Regardless of whether it’s the full board or audit committee, CFOs will want to take time to understand who is in the room and their various experiences to shape more effective communications. “Boards can be challenging because they don’t have the same perspective that management has,” said Shimer, who most recently served as Deloitte US COO and before that as its interim CEO and CFO. “In management teams, you have more commonality in norms. It’s more varied on the board, which means CFOs should be familiar with their board’s strengths and weaknesses, and what the hot buttons are going to be for each board director and committee member.” Developing a relationship with each board member can help build this awareness.

Consider Message Form and Function

Pete Shimer

The content, form, and function of materials and their presentation are critical in getting an appropriate level of oversight and effective outcomes in the boardroom. When presenting to the board or audit committee, CFOs should know how to adjust their message to their audience. “It’s important to figure out how to toggle back and forth between the very complex and the very simple executive level communication,” Shimer said. “CFOs may want to consider having a pre-meeting before the board meeting to figure out in advance who the critics may be of the ideas or materials they’re presenting.”

Find ways to beat expectations when it comes to helping directors do their job. While some boards may require a topic refresher given the gaps between quarterly meetings, those who don’t may still appreciate a slim presentation deck.

“A best practice for board materials is to provide a written executive summary in front of each section of the board presentation that conveys what management wants the board to know in a concise narrative form,” Briggs said. “At the end of each section, management can include questions they want the board to consider or things they would like feedback on.” Providing questions or key items for consideration in advance saves time directors may need to prepare and can help guide the dialogue on more complex ideas.

Be Prepared to Pivot…and Wait

When a board presentation doesn’t go to plan and time is constrained because of a full agenda, it can be challenging to refocus the group on the original purpose. “CFOs need to be able to think on their feet,” said Shimer. “That was the No.1 lesson for me early on. When I entered the boardroom, I was always prepared to deliver my presentation, but I eventually figured out how to avoid getting tripped up when a conversation took a different turn than I anticipated and lead the room back.”

“If the conversation is going in a different direction, it also doesn’t mean it’s bad or that it’s something the board doesn’t understand,” Shimer added. “The group may have a different vector to it. CFOs need to depersonalise it and let the process work.”

It’s also important to note that the level of board engagement can vary from company to company. Ideally, a board’s activity is in a sweet spot that provides insight and advice to management, recognises its ultimate oversight responsibility, and conducts useful, two-way discussions. It can also include seeking outside industry and financial expertise to add value to decisions.

Briggs recommends that when the conversation goes awry, CFOs may want to just express their thanks for the board’s feedback and ask to return to the topic at the next meeting after considering the board’s input. And if the topic is time-sensitive, the CFO can bring it up at an off-cycle meeting. That can make the board feel valued and heard. “If questions mount and time gets tight, be prepared to go off your script and skip over things,” she said. “What are the three most important things you want the board to know in the five or 10 minutes you have left? But if a matter is vitally important, CFOs should not be afraid to ask for more time.”

Communicate Early and Often

CFOs should develop close ties with their company’s audit committee chair, who can be a sounding board on important matters. “It helps me when a CFO schedules monthly calls with me, from 15 minutes to an hour, so we’re in sync on what’s happening, even if it’s business as usual. It’s good to talk through key decision-making items in real time,” Briggs adds. A good audit committee chair can also guide the CFO to meet with other committee members ahead of a board meeting to gather perspectives and make for a smoother, more effective meeting.

“I have a rule with my finance and executive teams that we would never take something to a board once and ask them to vote on it,” said Shimer. “We would always have to raise it for at least two sessions — once to get their senses going and stimulated. You’ve got to have two bites of the apple.”

Craig Schneider is senior writer, Executive Perspectives in The Wall Street Journal, Deloitte Services LP.

As published by the Deloitte US Chief Financial Officer Program in the 7 January 2025 edition of The CFO Journal in WSJ.

-

Disclaimer

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Copyright © 2025 Deloitte Development LLC. All rights reserved.

-