Do you ever struggle to explain a technical topic to a non-technical audience? Using a “mind-map” can be an effective tool. 

The Zen of the mind map

A mind map is a pictorial diagram used to outline ideas based around a single concept or theme. Mind mapping can range from doodling ideas on paper to a more formal presentation of complex topics or projects with the use of any number of digital apps. 

Mind-mapping is used to clarify topics and themes and is a valuable tool in developing: 

• Meeting presentations 

• Articles 

• Training classes 

• Presentations to persuade participants  

• Analysis of business processes 

• Project planning, assignments, workplans and goals

Picture this. You would like to convey the essence of regulatory accounting to your finance team, management and oversight board (who regulates your utility rates) - clearly an audience of mixed financial backgrounds. This presentation is necessary in providing key information for these individuals to make decisions regarding:

• Approval of the current utility budget

• Need to finance strategic initiatives in your utility’s workforce management and move towards renewable power supply options in future rates for current expenditures

• Need to increase utility rates

• Political reality to hold down the amount of any increase in rates

The foundation for regulatory accounting is Governmental Accounting Standards Board Statement No. 62 (GASB 62) - Regulated Operations. This statement is fairly technical in nature and it is easy for an audience who just needs to know high level information to get lost in the weeds in a presentation. If an individual wanted to dig into the weeds on GASB 62, full courses could be taken for a deep understanding. But, using traditional tools, like PowerPoint, written reports or an oral presentation runs the risk of sowing confusion, mis-understandings or putting the audience to sleep. 

A mind map is well suited for visually presenting a complex topic as described here, since it is hierarchical and shows relationships among the pieces of information presented. A mind map is based on a single concept drawn in the center of a page, which is then surrounded by groups of related concepts, images, thoughts and questions designed to clarify ideas. Major ideas are connected directly to the central concept, and other ideas branch out like the roots of a tree from those major ideas. 

The GASB 62 mind map

The following is a high level mind map of our GASB 62 example. This mind-map was developed in MindNode (but there are other effective apps available):

In our simplified example, one could point to a concept or idea and spur discussion that drills down beneath the surface of the presentation. Others could walk away from the presentation with a high level understanding of the issues and potential applications to their utility’s situation.

About Russ Hissom - Article Author

Russ Hissom, CPA is a principal of Utility Accounting & Rates Specialists a firm that provides power and utilities rate, expert witness, and consulting services, and online/on-demand courses on accounting, rates, FERC/RUS construction accounting, financial analysis, and business process improvement services. Russ was a partner in a national accounting and consulting firm for 20 years. He works with electric investor-owned and public power utilities, electric cooperatives, broadband providers, and gas, water, and wastewater utilities. His goal is to share industry best practices to help your business perform effectively and efficiently and meet the challenges of the changing power and utilities industry.  

Find out more about Utility Accounting & Rates Specialists here, or you can reach Russ at russ.hissom@utilityeducation.com.

The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists. You should seek formal advice on this topic from your accounting or legal advisor.