You don’t need an MBA to speak the language of the boardroom. Use this glossary to decode key business terms and reframe your work in a language that resonates with the C-suite.
In order to move into an HR leadership role, the ability to speak the language of the boardroom is non-negotiable. This isn’t about becoming a finance expert – it’s about framing your expertise in a way that resonates with executives.
But even the strongest communicators can find that what works in HR’s traditional circles doesn’t always land with some executives. The boardroom has its own language, and often relies on a shorthand of jargon and acronyms that can be challenging to decode in the moment.
“The boardroom doesn’t speak HR, it speaks in outcomes,” says Melissa MacGowan, HR executive, coach and upcoming speaker at AHRI’s National Convention and Exhibition in August.
“For HR to be influential, we need to translate our work into what matters commercially: progress, risk, return and impact. Just last week, I wrapped up a leadership discussion with the question, ‘That’s all great – but what will the board really want to know?’ That lens changes everything.”
MacGowan has noted three common pitfalls HR practitioners face when presenting to executives or boards:
- Leading with process instead of purpose – HR should focus on the “so what” rather than what’s going on behind the scenes, she says.
- Framing outcomes in functional HR terms – instead, frame the conversation around business and financial impact.
- Saving the point for last – as MacGowan puts it, “Execs are impatient and time-poor. Get to the point fast.”
A common thread here is the importance of communicating everything through a commercial lens.
“For example, don’t just say, ‘We rolled out a new performance management system,’” says MacGowan. “Instead say, ‘We rolled out a new performance management system so we could improve goal clarity, lift accountability and reduce underperformance by 20 per cent in the next cycle.’
“The difference is clarity of purpose and a clear line to business value. This is ongoing work for all of us.”
Glossary of boardroom terms and acronyms
To help emerging HR leaders translate HR’s initiatives into commercial language, HRM has compiled a glossary of key boardroom terms every HR leader should know. Find a downloadable version here.
