CFO Update - March 2009

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Each segment of the organization considers itself indispensable to the functioning of the business. While this is true, it invariably results in the department heads locking horns over trivial and non trivial issues. With the finance function being cautious in its projections, and the Sales & Marketing function being magnanimous in its approach, the clash of the titans is inevitable. We asked several finance professionals “What aspects of the Sales & Marketing function get your blood boiling?”

One of the primary grievances is the obsession of the Sales & Marketing function to meet volume targets by buying volumes through discount led strategies. This is counterproductive in the short, medium and long term. It also tends to be over dependant on channel partners. The Dealer push is a popular practice among the sales function. It focuses on short term benefits rather than the more difficult task of developing consumer pull and sustaining customer relationship through value-added services.

There is no denying that, at the end of day, business generates returns on capital. However, it is a matter of concern that the Sales & Marketing function puts focus only on growing revenues without profits.

The finance department also finds it a trying task to cover-up sales deficits and sales risks on support function processes and policies like finance, supply chain, compliance etc. Generally, the Sales & Marketing functions’ attitude towards all back office functions is another problem area, as they tend to conveniently blame the back office function in areas where they are unable to create business.

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