The 4 Boardroom Questions: what to ask about any number

Most managers don't struggle with finance because the maths is hard. They struggle because nobody gave them a routine. A slide full of numbers appears, everyone nods, and the meeting moves on. These four questions give you a routine you can use on any number, from revenue to EBITDA to cash.

What? Read the number plainly

Say in one sentence what the number is and what moved: "Gross margin fell from 44% to 39% compared with last year." If you can't say it plainly, ask. "Which period is this, and compared with what?" is never a stupid question.

Why? Trace it back

Almost every movement comes from a handful of causes: price, volume, mix (selling more of some products and less of others), cost, or timing. Ask which one it was. "Did we discount, or did costs go up?" gets you much further than "why is it down?"

So what? Connect it to something that matters

This is the question most managers skip, and it's usually the one the CFO asks first. A falling margin matters because it means each extra sale brings in less profit, and that affects next year's budget, hiring and bonuses. Link the number to margin, cash or a decision that's coming up.

Now what? Leave with an action

End with something you'll do or ask, not just an opinion: "Let's look at margin by customer before we approve the next discount." That's what makes you the person in the room who uses the numbers, rather than the one who survives the meeting.