Imagine your boss asks you to explain a complex matter — let’s say, a multi-jurisdictional M&A deal — as if the boss is a young child.
What did your boss mean? What should you do?
In this story I will share my thoughts on the matter.
Higher = Simpler
The higher the job position, the more desirable simple explanations are. The boss doesn’t have time to go into details and study documents. The boss needs facts, analysis and results presented accurately, timely and in plain language.
A good example of a simply explained complex matter — Albert Einstein’s formula for the equivalence of mass and energy. The boss may not have time to study the theory of relativity. But the wide-known formula will ensure at least a general understanding of that theory.
Do not confuse simplicity with simplification. Explain complex matters clearly, but don’t downplay their significance or omit crucial details.
I suppose, from the boss’s perspective, simple — but not simplified — explanations of complex matters are worth their weight in gold.
Study Examples
You can find a lot of cases of complex matters simply — intelligibly — explained in movies, TV series, blogs, and books.
Here are 3 examples I enjoy —
1. Margin Call
In Margin Call, Peter Sullivan, a risk analyst, explains in simple terms to John Tuld, investment bank’s CEO, the potential outcomes of keeping mortgage-backed securities in the bank’s books.
Video here.
Take a look behind the scenes of the Wall Street. Enjoy a beautiful metaphor about the music that either is about to stop or has already gone.
2. The Office
In The Office (US version), Oscar Martinez, an accountant, explains in simple terms to Michael Scott, regional manager, what does the unspent balance mean.
Video here.
The explanation is concise and gets to the point. Example with an ice cream stand is priceless.
3. The Big Short
In The Big Short, Jared Vennett, a salesman from Deutsche Bank, explains in plain language to Mark Baum and his guys from FrontPoint Partners that there is a housing bubble and it’s time to short mortgage securities.
Video here.
Jared illustrates his point by a jenga: a tower made of wooden blocks plays a role of a mortgage security. Jared nails it — and, ultimately, earns big bucks.
Remember Theory
When the boss asks to explain a complex matter in plain language, remember to —
Know Your Business
You can explain something in plain language if only you understand it.
In Margin Call, Peter understands the risk management and happens to complete the research done by Eric Dale, his former boss, albeit — or thanks to that — Peter is a rocket scientist. Peter does his homework: checks what Eric worked at; adds missing data; formulates the results; informs line manager ASAP about the problem.
Do your homework. Understand the issue before reporting it to the boss.
If the input is garbage (lack of research, unverified resources), then the output will also be garbage (confused story, unreliable data).
Consider the Context
Present information in a way that is appropriate to the boss and the setting.
Consider the position, background and level of awareness of the boss.
In The Office, it is useless for Oscar to retell Michael a chapter from an economics textbook. Smart words about balance, income and expenses will only deepen the misunderstanding. Oskar needs an explanation “on the fingers” to get his point through.
Check in advance where, how, and when you are going to report.
In Margin Call, Peter has to report to the CEO and executive board members. The level of importance — the highest. The meeting takes place at night. Everyone is obviously tired and alarmed. A storm is brewing in the stock market. Everyone is on edge, but so far big guys don’t quite get it. Immediate action is required for the firm’s survival. Peter’s talk plays a key role in decision making.
Check if the boss is aware of the issue (if so, to what extent). The boss may have no idea about the issue. Alternatively, The boss may be well aware of the issue, but miss its implications or the whole picture.
Consider who you are reporting to. The boss and the boss’s boss are different things. The boss can still have stamina to go through texts and graphics. The boss’s boss will most likely protest against looking into texts and graphics and require retelling them in simple words.
By understanding the extent of knowledge and experience of the boss, you can determine what information the boss needs and what level of detail and immersion in the topic is appropriate.
Keep a Key Idea in Focus
Focus on one main idea that the boss needs to understand. Excessive detail can make the explanation meaningless.
In Margin Call, every second counts. John has to make am immediate decision on how to save the bank from bankruptcy. To do this, John must understand where the source of the bank’s troubles is. Peter’s job is to clarify to John that mortgage-backed securities are such a source.
Don’t overload the boss with information that the boss doesn’t need at the moment. Otherwise, you risk burying the important part under the heap of the secondary stuff.
Employ Common Language
Speak the same language with the boss.
By speaking the same language I mean employing the terminology, grammar constructions, emotional features, pauses, gestures, humour, pitch, rate, rhythm, and pronunciation that are — or presumed to be — familiar to the boss. Consider the boss’s preferred communication style.
In The Big Short, Jared successfully exploits Mark’s prejudices about the fairness and awareness of financial market participants. The majority is wrong, and refuses to impartially accept the reality: the housing bubble will burst in the nearest future. Also Jared uses Wall Street jargon because he talks to a Wall Street fund manager, not a layperson.
Give preference to common vocabulary. Abstain from using jargon or abbreviations unless you are 100% sure that the boss will understand you.
Communicate Colourfully
Give examples. Illustrate your thoughts. Use metaphors, comparisons and contrasts.
In Margin Call, Peter picks up John’s metaphor about fading music, adding an important refinement to it.
An appropriate metaphor or illustration can save dozens of words.
In The Big Short, Jared illustrates the bursting market bubble with a crumbling wooden block tower. The tower saves thousands of news reports, academic journals, and statistics indicators.
Metaphors, examples and illustrations are powerful: they increase the likelihood that the boss will remember the main point that you want to convey to him. However means of expression should be appropriate and correspond to the main idea.
Use Storytelling
Storytelling encourages active participation, creativity and use of imagination. Stories increase verbal proficiency and help remembering things through emotional connections.
In The Office, Oscar brilliantly improvises: he tells a story about parents giving a child money to buy an ice cream stand. Oscar makes Michael a part of that story, thereby helping Michael to understand the world of financial data.
Don’t forget the main idea while telling the story. Your story should be appropriate. Avoid storytelling if it’s unnecessary and will only eat out your and the boss’s valuable time.
Watch Your Language
Be careful about the words you choose. In every case.
In The Office, Oscar understands perfectly well that Michael is a big child. The key to Oscar’s success is active voice, vivid storytelling and simple vocabulary.
Remain focused. Don’t drift from one topic to another without any valid reason.
Remember difference between simplicity and simplification, common language and jargon, offices and clubs.
Sum up
Learn to explain complex matters in plain language. This skill will outpay itself.
Before reporting to the boss, research the matter, check the context and determine the key idea.
Communicate with the boss in common language. Where appropriate, employ storytelling and various means of expression.
Disclaimer: This is my personal blog. This is neither a legal opinion nor a piece of legal advice. The opinions I express in this blog are mine, and do not reflect opinions of any third party, including employers. I do not intend to malign or discriminate anyone. I reserve the right to rethink and amend the blog at any time, for any or no reason, without notice.
