I was having a conversation with one of my favorite provosts recently (you know who you are) and we were discussing the evolving role of CFOs and administrators in higher education.
We have been spoiled by decades of growth and price increases. Now it seems like we’re entering a perfect storm, creating what is likely to be a very challenging decade. This will be hitting institutions at different times and in different ways over the coming years.
I work with a lot of institutions who face this impact. And I see a significant shift in the expectation for the role of the CFO and the senior leadership team. We are asking presidents, provosts, and the entire leadership team to be engaged and strategic financial managers. When financial challenges appear on the horizon, the CFO often sees them coming first and passes the information to senior leadership. Many CFOs wonder why senior leadership is not taking action when they have been sounding the alarm for a long time.
Is the message clear?
As I work with many of these institutions, it occurs to me that while the message is being shared, it is not necessarily being understood. This is analogous with teaching versus learning. Many of us in finance have been pointing out financial challenges on the horizon for a long time, but some that we communicate with are not learning and understanding what this information means. I often say that accountants speak in numbers, and that is a language many others do not understand.
In this moment, it is more important than ever to become educators and help others learn these concepts. It is not about expecting them to become accountants. It is about presenting the information to them in a way they can relate to. This allows for open discussion and generates questions to help everyone get on the same page (learn) about the problem that needs solving.
To ensure effective learning, use a learner-centered, active approach:
- Structure the Content: Break material down into small pieces, starting with a review of previous information. Example: How does this connect to last year’s budget or the last report we looked at?
- Active Engagement: Use active learning techniques rather than just sharing information and facts, encouraging learners to talk and collaborate. This is perhaps the most difficult step. If we have not clarified the messaging enough for our audience, it will be difficult for them to ask questions. Be patient and remember that asking questions is a good thing. It shows that people are engaged in learning.
- Demonstration and Practice: Model the steps, think aloud, and provide high levels of active practice, guiding the team as they begin. For example, if you are trying to solve financial challenges, the first step is to understand that the revenue coming in is not as great as the expenses going out. We could ask “Can you think of examples of how our bottom line might improve?” Or ask for examples of the cash that goes out the door that does not appear in our budget (capital improvements or principal payments).
- Visuals and Examples: Utilize visuals and provide real-life examples to improve retention. A picture is worth 1,000 words. Consider whether the numbers you are showing are important or if there is an easier way to convey the concept.
- Check for Understanding: Ask questions and monitor comprehension.
- Provide Feedback: Offer immediate, specific, and positive feedback to correct misconceptions.
- Scaffolding: Provide information over time that builds upon prior conversations. For example, ask how the current document connects to the last report we looked at.
- Foster an Environment: Establish a safe and engaging environment that is open to questions and questioning the data. This is an important part of learning, and we need to resist the urge to be defensive if someone questions the validity of our data.
These examples may sound too basic for many of you but remember, for the first time in our very long history we are asking presidents, provosts, and the leadership team to be engaged and strategic financial managers. This is on top of all of the responsibilities that they already have. This transition will not happen overnight, but if we are thoughtful about helping the leadership team learn these important financial concepts, we will be empowered to solve our financial problems.
Image by Jerry Kimbrell from Pixabay