I was recently asked for my opinion about the role a CFO plays–good or bad–as it relates to the sales organization. At times, I have witnessed short-sighted CFO’s take on such a significant role within a company, it sometimes facilitated the downward fall of the company itself.
My view on the role a CFO can play is very straightforward. The sales organization is responsible for generating the revenue. The financial organization is responsible for managing the money. If the sales organization isn’t generating revenue, changes need to be made within the sales organization. If the financial organization isn’t managing the money properly, changes need to be made within the financial organization.
I’ll say this: The “bottom line” is that there would be no need for a CFO, and a CFO wouldn’t have a job if the sales organization wasn’t “bringing home the bacon” by way of generating new sales revenue. If you think about it objectively, the sales organization drives the other business units and is the hub that connects the spokes to the wheel.
In my experience, the problem with many of the CFO’s I have worked with throughout my career is threefold:
1. They view the sales organization as an expense not an investment.
2. They jump over dollars to count pennies.
3. They are short-term thinkers with limited vision.
I’ve only worked with one credible CFO in my career who truly understood the importance and necessity of the sales organization as the sparkplug of the company, and he was good because he understood and valued the sales organization as a whole. Moreover, he understood you can’t cut your way (long-term) to profitability. He also “got it” and understood the concept that without top-end revenue growth, a company is doomed to fail.
The sales organization should be viewed as an investment not an expense. CFO’s who understand this concept are much more valuable in the marketplace. Unfortunately, they are in the minority in today’s market.
The Sales Advisory Board
