​

Hello Reader 👋

This weekend, it was raining in Belgium (a bit like 99% fo the year) so I decided to take the kids to the movies and watch Inside Out 2

You know, that Pixar movie with the emotions in a teenager's head to illustrate our feelings in our lives.

While I liked the story, I won't bother you with a summary but rather think of how Pixar uses storytelling and how it can inspire you for your next presentation.

So take a coffee, sit down, and look at the video like 30K others

This week in FP&A Stories

💡 Pixar and FP&A Storytelling

Big surprise: I'm a huge defender of using storytelling in Finance presentations and communication in general.

And although I often explain that storytelling in Finance is not the same as storytelling for marketing or entertainment purposes, there are ways for us to get inspiration from these storytelling masters.

Let’s explore how the Pixar storytelling structure can be integrated with the "Three What" framework to transform FP&A presentation into stories that stick and are interesting.

Pixar’s Storytelling Structure and the Three What Framework

Pixar has perfected a storytelling structure that can be summarized into a simple yet powerful framework:

1. Once upon a time... (Setting the scene)
2. Every day... (Establishing the routine)
3. Until one day... (Introducing the challenge or opportunity)
4. Because of that... (The consequence and action taken)
5. Because of that... (Further consequences and actions)
6. Until finally... (Resolution)
7. And ever since then... (The new normal)

1. Setting the Scene: "What?"

Once upon a time...

Start by setting the scene. Provide context for your audience.

• What is the current state of the business?
• What are the key metrics and trends?

This stage is about grounding your audience in the familiar.

In "Finding Nemo," the story begins with Marlin, a clownfish, living a peaceful life in the Great Barrier Reef with his only son, Nemo.

FP&A Application: “What?” Our company enjoyed a steady annual growth rate of 5%, driven by consistent market demand and operational efficiency.

This is what I call the "context".

2. Establishing the Routine: "What?"

Every day...

Describe the normal operations and routines.

This helps in understanding the baseline against which changes will be measured.

In "Toy Story", every day, Woody and the other toys in Andy's room lead a life of secret play whenever humans aren't around.

FP&A Application: “What?” Explain the normal, standard of your results. In our case, it's the comparatives like "last year" or "budget/forecast"

3. Introducing the Challenge or Opportunity: "So What?"

Until one day...

Introduce the main challenge or opportunity that disrupts the status quo.

This is the turning point that requires attention and action.

Example from Finding Nemo: Until one day, Nemo is captured by a diver, thrusting Marlin into a perilous journey across the ocean to rescue his son.

FP&A Application: “So What?” What's the change? What is the element of your analysis that makes the difference and could have an impact on your audience?

4. The Consequence and Action Taken: "So What?" and "Now What?"

Because of that...

Discuss the immediate consequences and the actions taken in response to the challenge or opportunity.

Example from Finding Nemo: Because of that, Marlin teams up with Dory, a forgetful fish, to brave the ocean's many dangers.

FP&A Application: “So What?” In case you identify a business root cause, what are the direct impacts on the financials of your company? What did we already do about it?

5. Further Consequences and Actions: "So What?" and "Now What?"

Because of that...

Continue to explore the ripple effects and subsequent actions.

Example from Finding Nemo: Because of that, Marlin learns valuable lessons about trust and letting go, which help him and Dory navigate their journey.

FP&A Application: “So What?” This is where you will explain the impacts on the future if we don't do anything. The typical is to assess what the total impact vs Budget/forecast will be (so already be prepared with this calculation)

6. Resolution: "Now What?"

Until finally...

Bring the story to a resolution. Highlight the outcomes and how they compare to the initial situation.

Example from Finding Nemo: Until finally, Marlin and Nemo are reunited, and Marlin learns to trust Nemo's abilities, leading to a stronger bond.

FP&A Application: “Now What?” In our jobs, when we present the results of the month or the budget, we don't have yet the answers. Yet, we still have to make sure we formulate recommendations by calculating what actions could contribute to bridge the gap.

In this facilitating role, you must discuss the options brought, be open to new ones and be sharp in assessing the financial impacts of proposed solutions.

7. The New Normal: "Now What?"

And ever since then...

Describe the new state of affairs and the lessons learned.

Example from Finding Nemo: And ever since then, Marlin has become a more relaxed and trusting parent, allowing Nemo to explore and grow.

FP&A Application: “Now What?” Again, here you won't be able to conclude on what happened after the decisions have been taken but you can summarize the estimated impact (gap vs budget + R&O will lead to a gap/surplus of ....).

Also important to assign the action points so we know who will do what after the meeting is over.

That's a wrap for this week

See you next week!

PS: Whenever you're ready to develop your financial storytelling skills and become the visible face of finance, join the Financial Storytelling Program​