Sales & Finance, is friction-driving performance a good thing?

Cohesion V Conflict, the conundrum all companies must face!

We all know of the ‘Finance V Sales’ corporate battles as much as the ‘’Sales V Finance” iterations. The disagreements between Credit & Collections (aka Finance) and Sales are the stuff of office legends the world over. In some companies, declining a credit limit can invoke a response similar to that of a hostile takeover with alliances forged for the ‘big vote’ and relationships strained way beyond what a rational person would consider reasonable. That said, business seems to get done and the world continues to spin, so where is the sweet zone in the Sales/Finance dynamic and what can be done to make it more stable and productive??

Relationships are where it starts and ends, as the counterparties in sales and finance are people whom mainly interact through a direct relationship administrating the sales to cash process chain. Casting aside ones biases about the other’s function and building a relationship with the individual based on their individual merits rather then the reputation of their function is of paramount importance.  

Process Understanding is an overlooked concept for both parties whom are often influenced by a ‘silo’ mentality. This often leads to process knowledge being withheld due to a lack of trust, cultural expectations from an impacting past of mistrust and resulting in a defensive hoarding of information. Trust is a cornerstone of any successful relationship and needs to be constructed over time. Be knowledgeable about the counterparty’s process and engage them collaboratively showing you are an asset to ‘our business’, not a threat to ‘their position’.

Customer is Key & Cash is King!!  Whilst very true on both counts, neither will work well without the other so collaboration between two key functions is a must do for any successful venture. In addition, the company will not last the pace without cash and overdoing rigidity in collections can also kill the company with equal efficiency! Striking a balance between flexibility in the order to cash process and the reasonable need to get paid is key. This balance needs to be set on a company-by-company basis.  As long as the outcome is identifiable, definable, measurable, controllable and auditable, then the behaviours and risks coming with the request should easily be vetted, analysed and incorporated into the approval part of the process.

Customer knows both parties. Sales V Finance disputes always present a risk of overflowing into a commercial customer relationship as both parties have a relationship with the customer through sales and through collections. The customer should never be made privy to any disagreements especially if they can benefit from a continuing internal dispute. Despite gains apparent in the short term, any customer involvement is the start of the end of the customer relationship. Professional organisations should never involve a customer in their internal disputes.

One Company, One Vision! ‘Company Culture’ should be a singular entity, but in reality can be a blend of many sub cultures often build around powerful people, positions and/or functions.  This often impacts Sales V Finance disputes and is indicative of why a ‘one company, one vision’ type of culture is critical to a sustainable business and continuing focus on the one element that makes it all happen, which is the customer. The culture should support a continuously improving focus on the wants and needs of the customer, not enable inter functional disputes that ultimately lead to reduction in service level and then to an ending of the customer relationship.

Leadership is important in resolving disputes. Leaders taking a hands-off approach or ‘taking sides’ only inflame passion and ingrains positions of those who have to work together on a daily basis. Good leaders will help their people understand the counter party point of view, counselling the team member in how to reach the counter party in a win-win result.  The focus on the counter party interest rather then position is important and should always be used by leaders to show how there really is nothing personal to the dispute, so why not focus on the professional win-win outcome.

Despite disputes and all the work that lies ahead for a better tomorrow, there is no doubt that the majority of Sales and Finance professionals find a way to work together. So what if all parties were willing can be transformed into a sustainable success for tomorrow through reaching out by all on understanding their counter party differences whilst celebrating their commonalities? I would wager the results would not fail to impress their management, their counter parties and above all, the customer who would once again take number 1 on the priority list for each professional in each function that serves them on a daily basis.

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“Public Domain Images”

Software has an appetite, so what’s next on the menu?

Accounts Payable, here today, so what of tomorrow?

We all love AP! They pay the bills and keep our contacts happy whilst the business ticks over. We also know that software is eating the world and when it comes to automation, AP is never far from the agenda in planning sessions.

AP in its current state is a highly structured process driven function that receives invoices, processes them for payment and pays them. There are some accounting and audit add-ons but the former in the essence of AP today. There is a clear case for automation of AP with current ERP and character recognition technology but like so many things, there is also an opportunity cost to investing large amounts of money into a project that may gain productivity but will loose headcount along with its associated costs, expertise and functional knowledge. You will always find when a person compared to a computer watches closely, they don’t retain as much information, but they do take on meaningful insights once the right person is in the right position.

The organisational view from AP yields an ability to see along the procure to pay process chain to the supplier on-boarding process along with understanding the supplier business including building subject matter expertise on the supplier portfolio. This along with an incrementally deeper understanding of how financial resources are being used by the company creates value and an opportunity cost if overlooked. This to me is as important as the ability to pay a bill on time, so why does it not factor into more strategic decision making discussions on AP? I think the answer lies in the organisational positioning of AP, how it is led and perceived in the social hierarchy of the organisation. This matters when making strategic decisions on what you are loosing to automate AP and what ‘picture’ you are carrying into the automation project.

So, what is the biggest complaint management are having about AP? Productivity, Productivity, Productivity!!! The traditional viewpoint is that AP is a cost centre essential for doing business but is incapable of adding value to what is currently available. I think if this is true, then the potential of AP is not being fulfilled and any software solution will be just as lacking in its outcome.

Software Projects that start fully informed have a greater chance of finishing in success. Omission in formal meetings on AP’s contributions by managers is truly damaging to a project’s success trajectory and often avoidable if the wider team takes the time to understand what AP contributes, what it can contribute and what value creation automation will bring to the business?? Will AP be a foundation for a new approach to business intelligence given their subject matter expertise on suppliers, the procure to pay process and analysis of costs? Will it create value and if so, in what way?  If these questions are answered in a meaningful manner, then the company will see outside of the daily contributions of AP and understand what could add value from a wider company perspective through the professionals in AP as much as the processes therein.

Software will one day eat your AP department by the vary nature of what AP is credited with doing for the company today. However, if AP’s potential in things like query management and process controls along with supplier development support and analysis was developed in partnership with the procurement and sourcing departments, then a more integrated, closer knit procure to pay process chain would be delivering more value in how business is done, what business gets done and what value is created by the human element of the process chain in a futuristic AP as much as the automated processes therein.

 

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www.crystalgraphics.com 

www.vitex.com

www.freedigitalphotos.com

www.dreamstime.com

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Sales, a sustainable future… Sewing the seeds of tomorrow’s revenue today!

The Title Bout! ‘Value Creation V Product Focus’ who dare’s wins!

We all know a company needs sales to survive ergo ‘sales sales sales’ is the motto of many successful organisations over the years. However, to be a hero in a company as a salesman today does not necessarily mean the company will be around tomorrow to enjoy future bounty. So if no one has a magic formula to guarantee indefinite success, where is the relative security of a sustainable approach to sales and how can we harness it for the future??

This is a question I have pondered over the years and have come to some realisations as follows:

Value: If we don’t create value in the eyes of the customer, then we will not get a repeat sale, which is by far the most profitable. What is equally as important is a sustainable approach and how we create value over the longer term! Thinking about this, do we proceed purely on a cost basis or is there a value creation basis for the customer??

Culture: Who we are as a company influences our approach, interaction and transactional standards in every sale. It determines our focus through the process (products/discounts/competition/value/etc.) ergo the real picture of the company will be visible via culture to our customer. If our cultural picture is incompatible with our customer’s culture and values, hiding it through deceptive means whilst understandable in this context (‘sales, sales, sales’) will only ruin the longer-term relationship potential when the customer finds out whom they really are dealing with. Honesty and integrity start in the heart of the sales professional and will shift the trust focus of the customer to the person rather then the company ONCE the sales professional is honest and forthright about the product and the value it will create.

Organisation:  A sales professional should always be in a position to talk knowledgeably and discernibly about the back end processes along with what is needed from the customer to complete them. They should also expect competent process execution and completeness from other business departments given they all serve the customer. A homogeneous company service level to the customer is a critical element to a sustainable value proposition.

Competition: Depending on the industry, sales professionals can create a value perception based on high standards through being knowledgeable about the competition and expressing it in a respectful and objective way. Acknowledging a competitor strength surpassing your own product strengths creates trust and credibility in what you say to the customer. A disparaging review of competitor products serves no constructive purpose and is detrimental to a sustainable relationship.

Relationship: Most sales professionals are chasing the next sale based on incentives provided. However, an employer may want to consider the service element even in product sales and the need for every sales professional to create value by also being an account manager. A sustainable relationship relies on good products and great people who continue to earn the trust of the customer in value creating products and services. If time is not spent with the customer in a structured approach in building and maintaining relationships even when they are not ordering allot, then the customer’s level of trust in the company will fade.

The goal posts of great sales practice change regularly, but what is constant is the people; those who order and those who sell. The ability to build a more “earthy” tone to the sales approach that is substantiated by a suitable company culture as much as a great product range will resonate with more customers over time then any ‘hero of the hour’ will on any given day. A company can innovate and bring to market one or many products that can create value for it’s customers, but as sales professionals, why not bring all your customers with you on the way. After all, if we all long to belong, then belonging to a wider family as a customer could be the start of new ideas for new business practice for a new day!

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www.smallbiztrends.com

www.dubchamber.ie

www.insidesales.ie

www.medicalsales.ie

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The value consciousness... Is there a price for doing the right thing?

Is a ‘sustainable’ approach to work a recipe for greatness or a fool’s errand?

When I was but a young boy, my dear old mother was counselling me on the downsides of seeking revenge against another boy who was mean to me on the playground. She said “Draw from your past, don’t let your past draw from you!” At 9 years old, it was hard to not exact a direct toll on the offending youth for the hurtful mockery at my expense. However, upon his next try, I was prepared and became the implicit victor, more by what I didn’t say and do then by my own prepared insults; designed to garner a laugh from an eager audience. Needless to say, that boy never bothered me again.

Whilst the story grew grey and dull with age, my mother’s counsel did not. It is still as enlightened and relevant now as it was back then! So why as adults, do we have such a problem with doing the right thing? Will our value consciousness leave our family and us destitute or will it propel us to the stars?

It is a worthy question to ponder as life is destined to present situations that will require us to have a position on ‘doing the right thing’ even if it is not in our best short-term interest. The real question is; is it worth it when all is said and done?

Here are some points to consider when your heart says “STOP!” and your head then wants to override your heart for ‘worldly reasons’.

A Road Less Travelled. Whilst others may shy away from a less travelled path, this does not mean you won’t find your way on its unbeaten trail. Even if you “look bad”, remember its not the journey of others to understand yours! Fortitude and venerable intentions will never be stained by gossip and innuendo.

Believe in what you understand, not what you see. Things are not always as they seem. Trust is a great thing, but when you need to verify, do so as trust will not suffice in the absence of verification. You may reveal those whom seek to deceive you and more importantly, you will reveal the truth. Don’t let the egos of others stop you from understanding. It’s a poor excuse in the face of critical errors in judgement.

Value the long-term outlook. When you consider it, new possibilities will always arise and present a different picture in the present and shorter term.

Don’t let your past become your future. This is the point my dear old mother made, which is still very relevant today. You may not always be able to remedy the wrongs of others directed against you. In accepting your limitations, you free yourself of the burden others impose by their actions, thus clearing your mind to see a better future for you!

Positivity. If your consciousness delivers positivity as a core trait, remember to structure it into a value-creating proposition by turning an objectionable course of action into a positive approach achieving (where possible) the same if not better outcome sought by the initial proposer.

Emotion is one of our greatest strengths and weaknesses. Remember to structure it, own it and deliver its overriding outcomes in positives. Negativity can creep like a cancer into the hearts and minds of good people corrupting their longer-term outlook.

Sustainability is about ability to achieve/perform over the longer term rather then ‘quick wins that set a thousand fires’. In accepting only necessary short-term pain by ‘fire starters’, you clear your consciousness of burden that prevents you from seeing a longer-term gain and outlook. A sustainable approach of outward value deliverance strengthens the unit/team versus the inward approach that selfishly garners value for one’s self at the expense of others and the longer-term outlook.

We may not be perfect as a people, but as individuals we can improve in a continuous cycle that adds value to our own consciousness as much as it does to our society and the prospects for our children’s children. When it comes time for them to step up and be counted by the universe during the course of their lives, why not leave a slightly better world for them as a gift that they will know as the present! Let them celebrate our example and deliver a better world in the ultimate cycle of sustainable and contentious improvement, where tomorrow will always welcome today!

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www.refresh.io

www.en.wikipedia.org

www.123rf.com

www.fixingpotholes.com

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