How important is the relationship between Sales and Finance?
Is it a priority of yours to ensure the relationship is close and/or positive?
Yes – very close and yes very positive.
1.Improved financial performance:
A positive working relationship between the CFO and Sales Director can lead to better financial performance as both parties work together to optimize the company's revenue and expenses.
2.Better decision making:
When the CFO and Sales Director have a good relationship, they are more likely to collaborate and make better decisions together, which can benefit the company as a whole.
3.Improved communication:
A positive working relationship can improve communication between the two departments, which can help prevent misunderstandings and improve efficiency.
4.Increased trust:
Trust is a crucial component of any successful business relationship. When the CFO and Sales Director have a good relationship, they are more likely to trust each other, which can help facilitate smoother operations.
The secret is finding middle ground.
When both teams have honest dialogue about challenges facing a business we can make strategic changes to realize the opportunities being presented. As partners, Sales and Finance can achieve greatness but when we don't work together we can be exposed to sub-optimal plans (the unintended consequences of incentives plans), unmeasurable goals, or time wasted debating reporting instead of delivering results.
Sales Incentive plans are a specific are that Sales management and finance need to work together. How will salespeople be incentivized, how / when will these incentives be paid, and so on need to be well understood by both parties.