Speak Like a CFO and Gain Management’s Attention (and Support)

The topic of how to Speak Like a CFO (and Gain Management’s Attention) is on a lot of minds these days. And it definitely should be on your mind, not just right now, but on an ongoing basis. Being able to communicate with your senior executives in their language, and thereby connect with them, is a key element determining the future of procurement.

In my experience, those procurement and SCM departments who invest time and effort to develop and master this skill are the departments heading to the top of the profession. On the other hand, those departments who don’t – or won’t – master this skill seem to be perpetually stuck on the tactical hamster wheel.

I’ve touched on this subject previously, and I’ll be presenting this topic in depth at the ISM International Conference in Dallas, TX and the end of April. Here are just a few key themes:

1. You need to adopt and speak the language of the executive suite (the “financial language” of the CFO) in order to be effective in your communications
2. Develop a vision with BOLD objectives that directly to senior management’s interests and objectives (EPS, ROIC, cash flow, risk management, etc.)
3. Lay out your transformation plan and roadmap, based on a candid assessment of your current state compared to best practices
4. View technology as an enabler of your transformation plan and stretch objectives, not an end to itself
5. Build your business case (what you expect to deliver, in exchange for resources and budget)
6. Be willing to make a commitment (of new $ results) in order to gain top management’s commitment and support
7. Finally, lead and make it happen

An important aspect of Speaking Like a CFO is knowing how to build a business case in support of your overall transformation agenda, as well as business cases specific to subjects such as technology investments.

When we work with clients, we prefer to start with a business case from a total transformation perspective. Why? It is part of a logical sequence. Once you’ve assessed your current state and compared it to best practices, identified the opportunities from successfully transforming your practices, and designed the detailed roadmap to get you there, why not request the full amount of resources needed to do the job well?

It might sound optimistic to ask for more resources when the current business outlook for your company might be challenging – but it can work if you approach the subject in the manner I described. In fact, we’ve worked with several companies who – following the process outlined – added more resources (people and processes) to their strategic procurement staff during the recession. Today, they are receiving the bottom-line benefits of taking that bold leap.

The alternative, quite frankly, is to be subject to the same headcount reduction guidelines that often are widely applied to all departments in times of business stress. That’s not where you want to find yourself; and, quite frankly, there is no reason to end up there.

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