Breaking the Silence: Effective Strategies to Foster Collaboration between Marketers and Finance

The relationship between marketing and finance is often tense, as marketers seek investment while the CFO focuses on cost-cutting. However, a lack of communication and understanding can lead to discord within the wider business. At Our Website's Festival of Marketing, a panel of marketers emphasized the importance of finding common ground through formalized discussions. Nikki Vadera, marketing and digital director for Henkel UK and Ireland, summed it up with four words: "meeting silence, corridor violence".

When it comes to any working relationship, this holds particularly true for the close dynamic between the chief marketing officer (CMO) and the chief financial officer (CFO). Vadera emphasizes the importance of open and transparent communication in this relationship, pointing out that marketing is often the first department to face budget cuts during challenging times.

Andrew Geoghegan, the chief marketing transformation officer at PZ Cussons International, agrees with this sentiment. He emphasizes that humility is essential in discussions between these two departments. While marketers may naturally advocate for increased investment, it is crucial for both parties to consider the overall needs of the business.

According to a recent study conducted by the CMO Council and KPMG, it was discovered that only 20% of CMO-CFO relationships are genuinely collaborative. In order to address this problem, the study proposed that both departments should share responsibility for certain assets, such as data.

Matthew Chappell, the global client success officer for Gain Theory, who was also a speaker on the panel, supported this idea. He emphasized that data has the potential to offer evidence of marketing's impact on overall profitability.

However, he and Vadera both pointed out that while data-led decisions are important, marketing is also heavily influenced by gut instinct. Therefore, the panel emphasized that data alone cannot serve as the sole foundation of the relationship between the two departments, but it can definitely be utilized to enhance and strengthen it.

Personality power

Geoghegan highlighted that when a relationship breaks down, it often comes down to conflicting personalities. Resolving such issues may involve one party setting aside their ego or seeking mediation from a higher-ranking individual. However, Geoghegan also acknowledged that the CMO-CFO relationship tends to be smoother compared to other relationships within a company, largely due to the widespread awareness of marketing's role in driving business growth.

A common suggestion for ensuring the success of a CMO-CFO relationship is for CMOs to communicate using the language understood by CFOs. In practice, this means framing requests for funding in terms of their impact on the company's profit and loss statement (P&L).

Additionally, it was emphasized by Vadera that it is essential for the CFO to reciprocate and communicate effectively with the CMO, especially during periods of financial constraints. Chappell agreed, asserting that the division between the two departments often arises because marketing tends to focus on long-term goals, whereas CFOs seek immediate solutions in times of financial pressure.

Furthermore, the entire panel emphasized that the CFO-CMO relationship cannot function independently, and it is crucial for each department to understand and communicate in the language of the other departments.

All the panellists unanimously agreed on the importance of prioritizing the P&L, especially during challenging times. They believed that analyzing the P&L not only helps the CFO comprehend the need to reduce marketing budgets but also offers the CMO the necessary context to substantiate their requests.