Tips and tactics: What to do when the CFO always says no
It's a game, pure and simple, but there's more than one way to deal with a CFO who reflexively turns down every budget request
Follow @ITCatalystsDear Bob ...
When I took this CIO position nine months ago, it looked like a terrific opportunity. It was a step up for me (I used to be head of application development for a different company), and both the company and IT group are small enough to be comfortable. I manage a team of 8; the company has about 250 employees.
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That was before I learned the CFO's nickname: Dr. No. Turns out that no matter what the request and no matter who it's from, he just says no. The business case doesn't matter. The opportunity doesn't matter.
Here's what does matter: how many times someone has brought it up, in how many ways, and how much they've trimmed from the original request.
Usually, four or five tries and about a third off the original cost will do it. And you have to appear properly contrite about asking him to spend the company's hard-earned money.
It isn't that I can't play this stupid game. I'm getting good at it. That doesn't change that it's just a stupid game and an incredible waste of time.
Any thoughts?
- Bond. James Bond.
Dear Mr. Bond ...
As someone once said, the only thing worse than having to play stupid games is losing stupid games. Congratulations on recognizing this for what it is: a stupid game.
Having worked for and with a number of CFOs in my career, I think what's going on is that when it comes to spending, CFOs fall into two broad groups: those who think in terms of investment and those who think in terms of cost. As a general rule and according to theory, all CFOs should think of spending in terms of investment -- that is, what the company will get back in exchange for the amount spent. That's the theory, and it's a good one.
There are, however, companies that for one reason or another have run out of growth. They sell in "mature markets," to use the euphemism. It means the customer population isn't increasing, and the suppliers to the marketplace are all the more afraid of losing what they have than going after the rest.
