Download Effective communication skills

CGMA TOOL
How to improve your finance
organization's efficiency and
effectiveness: Tool three –
effective communication skills
Paul Stahlin, CPA, CGMA
Regional President, Fulton Bank of New Jersey
Senior management ranks
communication as a skill in most need
of improvement by finance personnel
RANK
SKILL TO IMPROVE
1
Interpersonal
2
COMMUNICATION
3
Strategic
4
Technical
5
Leadership
Ranking from CGMA report, From ledgers to
leadership: A journey through the finance function
According to the CGMA report, The
Fast-Track to Leadership, management
accountants are increasingly pressured
to become effective world-class
communicators.
Management accountants are challenged by the need to
communicate complicated issues to different audiences –
financial analysts, customers, partners and employees –
as stakeholders require correct information and
transparency in real time.
Efficient communication is essential.
Effective communication is required to
leverage the management accounting
skill set across different functions to
fulfil organisational objectives.
Global CEOs agree that communication is a
top personal attribute that is critical for the
success of financial staff.
From the CGMA report, The Fast-Track to Leadership:
The challenges, opportunities and action plan.
6
How can management accountants know
they are being effective communicators?
By understanding:
 Types of Communication
 Body Language
 Types of Communication Flow
 Barriers to Communication
 Key Communication Skills
 Listening
 Feedback and Feedforward
 Presentation
Note: these are general tips, therefore, you need to take into consideration who
you are communicating with, especially in different cultures.
Types of
Communication
Types of Communication
 Verbal
 Occurs through the act of
speaking, or through
writing, such as emails.
 Non-Verbal
 Usage of signals, such as
facial expressions, body
language, gestures and
eye contact.
Verbal
Non-Verbal
Body Language
When interacting with others, body
language sends strong messages.
Body language tells others if you are interested, honest or
even listening. When body language is in line with the
words being spoken, it increases trust, clarity and rapport.
When it does not match, it may create confusion, doubt
and anxiety.
Body language matters.
Tips to improve body language
 Look but don’t stare
 Maintaining too much eye contact may make others
uncomfortable, but too little eye contact may make you seem
less confident or untrustworthy.
 Stand up straight
 Don’t slouch. Good posture helps to communicate confidence.
 Don’t cross or fold
 Folding arms and crossing legs may be perceived as a
defensive or guarded gesture.
 Smile often
 Smile when communicating with others. It makes you seem
friendly and approachable. People will be more likely to listen
to someone in a positive mood.
Tips to improve body language (continued)
 Lean forward
 Leaning toward a speaking person indicates your interest in
what is being said.
 Don't fidget
 Fidgeting is distracting and may make you seem nervous or
anxious.
 Mirror
 Improve your connection in the conversation by periodically
mirroring the other person’s body language.
Types of
Communication Flow
Types of Communication Flow
 Upward
 Communication that begins from
the bottom of an organisation and
flows to the top.
Upward to
Supervisor
 Downward
 Communication that begins at the
top of an organisation and flows
down.
 Lateral
COMMUNICATION
FLOW
 Communication between colleagues
or laterally equal members of an
organisation.
 Multi-directional
 The use of horizontal, upward and
downward communication flows.
Downward to
Subordinates
Laterally to
Coworkers
or Another
Department
Barriers to
Communication
Barriers to Communication
Barriers to communication include anything that prevents
people from communicating as effectively as possible.
A few key barriers are:
LANGUAGE
CULTURAL
GENDER
LANGUAGE
The use of internal or technical jargon is often a hidden language
barriers that we aren’t always aware exists.
CULTURAL
Different cultures, whether they be race, ethnicity, religious or the
work culture of a company, can interfere with communication if
different for cultures, therefore, needs to be taken into consideration.
GENDER
Although both sexes have both kinds of communicators, women tend
to be right-brain communicators: abstract and intuitive. While men
are more likely left-brain communicators: linear and logical. Both
sexes have to learn how to communicate in a way that allows persons
of the opposite sex to receive and understand information.
Key Communication Skills
Key Communication Skills
 Listening Skills
 Feedback and Feedforward Skills
 Presentation Skills
Hearing vs. Listening
 According to the Merriam-
Webster Dictionary, the
definition of hearing is “the
process, function, or power of
perceiving sound” whereas
listening is “to consider with
thoughtful attention.”
 Hearing is a physical attribute,
but listening is a cognitive
reaction to what you hear.
Most Common Barriers to Listening
Barriers to Hearing
• Background noise
• Health issues
 Results of poor listening
 Miscommunication
 Loss of opportunities
 Wasted time
Barriers to Listening
•
•
•
•
•
Lack of interest
Fatigue
Distractions
Environment
Impatience
23
Listening Self-Assessment
Read each item and indicate how frequently you
use this skill when talking to others:
Usually
Do
Make others feel at ease when I am talking
to them.
Do not think about other things when
listening to others.
Separate my own ideas and thoughts from
the speaker’s.
Listen to others with whom I disagree.
Do not form a rebuttal in my head while
others are talking.
Observe others’ verbal and nonverbal
behaviors.
Do
Sometimes
Should Do
More Often
Effective Listener Characteristics
 Practice active listening
 Evaluate speaker’s words and feelings
 Empathise with speaker
 Give feedback
Tip: To become a better listener, practice “active listening.”
Key Elements of Active Listening
 Pay attention
 Indicate
 Give feedback
 Delay judgment
 Summarise sometimes
 Respond appropriately
Tip: If it is difficult to concentrate on what someone is saying, try
repeating their words to yourself as they say them.
Pay Attention
 Give the speaker your full attention and
acknowledge what you’ve heard.
 Look at the speaker.
 Do not mentally prepare a counter argument.
 Avoid being distracted by surroundings.
 Avoid side conversations in a group setting.
Indicate
 Use your body language to indicate your attention.
 Nod occasionally.
 Smile and use other positive facial expressions.
 Use good posture to denote confidence and openness.
Provide Feedback
 Our personal feelings, assumptions, judgments and
beliefs can skew what we hear.
 Reflect back by paraphrasing.
 - “What I'm hearing is ...”
 - “Sounds like you are saying …”
 Clarify points by asking questions.
 - “When you said … what did you mean?”
 - “Is this what you mean?”
 Reflect, clarify and summarise the speaker’s comments often.
Defer Judgment
 Interrupting is rude and wastes time.
 Allow the speaker to finish before speaking.
 Avoid interrupting with counter arguments.
Respond Appropriately
 Be open and honest when responding.
 Respectfully speak your opinions.
 Treat the other person the way you would want
to be treated.
Four Types of Feedback
 Negative feedback – corrective comments about past
behavior (Things that didn’t go well)
 Positive feedback – validating comments about past
behavior (Things that went well and need to be done
again)
 Negative feedforward – corrective comments about
future behavior (Things that should not be repeated
next time)
 Positive feedforward – validating comments about
future behavior (Things that may improve future
performance)
Effectively using the four feedback types
 Make sure you use them all.
 Understand the importance of each type and share input for
each type.
 First, ask the other person their opinion.
 Ask questions without being interrogatory.
 - Feedback Examples:
“What did you think went well?”
“What do you wish you had done differently?”
 - Feedforward Examples:
“Knowing what you now know, what would you
do different?”
“What challenges will you avoid next time?”
“What will you ensure you do next time?”
 Connect all feedback together.
 Establish the relationship between past performance and
how it relates to the future. Tying together past and future
can help prevent defensive behavior.
 More “and,” less “but.”
 When you tie ideas together, use the word “and” not “but.”
- “But” cancels out everything said prior to the word
- “And” seems positive and inclusive
 Future Focused.
 Although feedback should be balanced, the primary focus
should be on the future. Always end the conversation
discussing the future because you cannot change the past.
Presentation Skills
 A presentation is a way of
communicating information,
influencing, persuading or
motivating a group of people.
4 Elements of a Great Presentation
 Content
 Ensure you have the right presentation for your audience. Keep the
content simple and focused but make sure to exceed the audience’s
expectations.
 Structure
 Make sure your presentation is well-organised with a logical
beginning, middle and end. Ensure it is structured and paced so that
the audience can follow it.
 Rehearse
 If a presentation is not presented well, it will not be effective. Make
sure you rehearse in order to ensure success.
 Human Element
 Engage the audience. Involve the viewers by making them
interested in the presentation through use of a visually appealing
colour scheme, a personal story or anecdote, visual effects, etc.
Presentation Structure
 There are several options for structuring the
presentation:
 Timeline: Order is sequential.
 Climax: Order main points based on increasing importance.
 Problem/Solution: A problem is given, a solution is
suggested and benefits are then presented.
 Classification: The major points are the important items.
 Simple to complex: Ideas are presented from the simplest
to the most complex.
Presentation Skills
 Preparation: audience analysis
 What is the audience interested in?
 What does the audience know and need to know?
 What does the audience want, need and expect?
 How will the audience benefit?
 Structure the content in line with the audience’s needs
 What do you want to communicate to the audience?
 What is your objective?
 Prepare presentation for the time allotted.
 Anticipate the questions and prepare answers.
 Attain material from a myriad of sources.
 Arrange key points in logical or sequential order.
 Prepare handouts, if needed.
 Allow sufficient time for Q&As.
Presentation Tips and Techniques
 Do not read directly from handouts. The audience will not
know if they should read along or listen.
 Do not put both hands in your pockets; it may make you
appear unprofessional.
 Face the audience and speak directly to them.
 Do not lean on the podium.
 Speak up and speak clearly. Refrain from using a monotone
voice. Also, use inflection to stress important points.
 Walking around the room will create physical closeness to
the audience.
 Do not wave a pointer or pencil around in the air. The
audience will begin to watch the item in your hand instead
of listening to you.
References and further reading
 The fast-track to leadership: The challenges, opportunities and action plan,
http://www.cgma.org/Resources/Reports/Pages/fast-track-to-leadership.aspx
 From ledgers to leadership – a journey through the finance function – 2012 update,
http://www.cgma.org/Resources/Reports/Pages/ledgers-to-leadership.aspx
 Six tips for finance professionals wanting to move up the career ladder,
http://www.cgma.org/resources/tools/pages/six-tips-for-career-progression.aspx
 The competencies required of finance professionals, http://www.cgma.org/Resources/Reports/
DownloadableDocuments/ledger-ch2-competenciesrequired.pdf
 Survey highlights most common mistakes managers make with employees,
http://www.cgma.org/Magazine/News/Pages/20125615.aspx
 Key communication skills for accountants – Robert Half International, http://roberthalfmr.cbmobile.com/RHMR/Article.html?categoryId=6,1
 Better listening, http://www.toastmasters.org.nz/speaking_resources/better_listening.html
 Dale Carnegie leadership training, http://www.dalecarnegie.com/
 The Art of Public Speaking by Stephen Lucas (Oct 4, 2011), http://www.amazon.com/The-Public-
Speaking-Stephen-Lucas/dp/0073406732/ref=sr_1_6?s=books&ie=UTF8&qid=1341328416&sr=1-6
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Effective communication skills, mhttp://www.e-booksdirectory.com/details.php?ebook=5236
Listening skills, http://www.karenfriedman.com/
IWCC training in communications, http://www.iwcctraining.com/
Communications: Methods and Applications for Financial Managers (available on CGMA.org in
November 2012)
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August 2012