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.
Sources/Credits:
Pics;
Credits;
“Public Domain
Images”
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