The CFO/CMO Union

Keeping in mind that there are important differences in how each of the executives is judged and rewarded there will always be disparity The Chief Financial Officer is a staff job usually reporting into Corporate That requires financial oversight of all business units as well as administrative functions and profitability Responsibility usually focuses on the bottom line The Chief Marketing Officer on the other hand is primarily judged and rewarded on brand growth and sales increases While marketing efficiency is certainly important the revenue side is where the primary CMO accomplishment is fulfilled The thread that binds them is measurement arriving at agreed upon metrics of success and corporate goals So the real responsibility rests with the CEOamp160 Here39s whyA company39s long term success depends on increases in sales revenue and profit The corporate vision is usually established by the CEO The rules of enactment are also approved by the CEO The interaction among functions comes together with top management oversight of policy and procedure In a well run organization the CEO has knowledge if not frequent engagement with all senior management on a regular basis at least quarterly of how results are being achieved How collaborative is the organization and how is that collaboration judged and rewardedThe survey primarily asked the opinion of CFOs about their relationship and involvement with the CMOamp160And while they would like to contribute to market segmentation and consumer insight most CFOs are not equipped to evaluate consumer marketing and the sophisticated methods used to pour through the funnel Needless to say they probably also don39t have the time to do it That doesn39t mean that finance and marketing are at opposite ends of the tunnel They aren39t nor should they be But uniting their perspective is another story The report identifies them as quotdistant alliesquot That39s probably the best description and most likely will continue to be So what needs to be done to improve and enhance corporate prosperity In my opinion it comes from clearly defined and agreed upon objectives and proper governance of the methods and processes used to accomplish the tasks In other words bottom line profitability and top line revenue growth must be balancedCFOs will not become direct marketing participants with regard to customer insight data management and strategic endeavors or tactical marketing applications It39s not their job But what they will have to do is expand their thinking about the need for investment as much if not more than short term savings and immediate profitabilityamp160The key objective is value Building value that leads to brand equity Because brand equity is the most efficient way to deliver customer satisfaction and build lifetime value And yes proper measurement and financial flexibility in this fast changing digital world is essentialThe CMO and CFO can work as a team providing they bring the right attitude and a common goal to the table That might also be outside their designated responsibilities and comfort level but it can happen if the CEO encourages and supports itThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecom management or associated bloggers Image courtesy of cooldesignFreeDigitalPhotosnetamp160amp160

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The CFO/CMO Union

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