In any business, finance plays a crucial role in planting those long-term trees for the benefit of your company and your team. Financial management is at the heart of every successful business, like the secret sauce that keeps it all moving forward.

In this article, I am going to discuss the relationship between the business leads and the finance team in the context of a communications agency but the content is useful perspective for any service-based business. 

From my experience, having an agency finance partner who's on your wavelength can make a world of difference in how smoothly a company runs. When you get them on your side, help them see the business logic behind your ideas, they can be your ultimate partners in propelling agency growth.
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The Importance of Embracing Finance

Back in the agency, when I asked people what they thought about the finance team, I'd often hear:
All they care about is money and numbers; they don't care about people.
Finance folks? They're clueless about the real business.
They're always pestering me for numbers!

Honestly, many folks don't fully grasp the vital role the finance team plays in the business, they are wary of them and rarely see them as true business allies. My experience tells me otherwise and here are 2 personal stories that illustrate my point.
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#1 Going Beyond Numbers to Boost Morale

The Scenario

I had just assumed leadership of the agency and was confronted with several challenges. The office had failed to meet revenue targets for two consecutive years, and employee morale had reached an all-time low, leading to a decline in productivity. One of my immediate priorities was to re-energize the team swiftly. To achieve this, I recognized the importance of collaborating with our Finance Director and swiftly establishing a strong working relationship. I briefed her on my assessment of the agency's situation and emphasized the urgency of revitalizing the team.

The Finance Director's Contribution

The Finance Director demonstrated a deep understanding of the situation and conducted a thorough analysis of the company's financial status. During her examination, she uncovered funds that had been previously unallocated, concealed under categories such as "Prepaid Expenses" and "Retained Earnings."

The Outcome

By utilizing these hidden financial resources, the Finance Director facilitated an unexpected reward. We were able to organize a 3-day, 2-night team-building incentive trip for the entire office, which consisted of over 50 people. This trip served as a turning point, shifting the team's focus towards a more positive outlook and initiating the process of rebuilding the agency.

This anecdote underscores that a Finance Director's role extends beyond financial analysis. They have the potential to significantly influence employee morale and motivation by creatively reallocating resources to bring about positive change within the organization.
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#2 Bridging the Communication Gap

The Background

As a new Asian branch of a global network, our agency had been experiencing rapid growth in recent years. Despite this growth, we consistently fell short of our revenue targets. The previous office head had struggled to gain approval from the global CFO for critical initiatives, such as salary increases, new hires, and the transition of long-term freelancers into permanent positions. These initiatives were essential for us to pursue the next phase of growth and meet our financial goals.

Gaining Approval from the Global CFO

A significant turning point occurred when we revamped how we presented our proposals to the global CFO. We shifted our focus to highlight the financial benefits of these initiatives, supported by strategic justifications.

Within a span of three months, we successfully implemented the following changes:

• Granted promotions with salary increases to three deserving employees.
• Transitioned five long-term freelancers into permanent staff, significantly boosting team morale.
• Secured approval for the hiring of five additional full-time employees.

This narrative underscores the importance of aligning your business agenda with the financial metrics that the finance team oversees. By presenting proposals and recommendations in a way that resonated with their financial objectives, we garnered their support for initiatives that ultimately benefited the entire organization.
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Communicating with Finance

The role of the finance team is to understand the impact of any initiatives and actions on the company's financials. This does not mean they do not care about the operation or the people, they just need to know the financial implications FIRST.

One might wonder, "I've tried, but they don't seem to understand or agree with what I'm saying!" This frustration is not uncommon, and it often arises from a fundamental difference in perspectives – essentially, "speaking different languages."

We often hear the advice to "understand your target audience so that you can speak their language." We apply this principle when dealing with clients and other team members. So, why should it be any different when communicating with Finance?

To bridge the communications gap, it is essential to speak their language effectively.

To do this, you need to do two things:

1. Understand the Finance Team’s Perspective & Priorities

A responsible finance team wants to understand the financial benefits of any strategic actions. They want to know how any initiative will impact either the top or bottom lines. They want to know either where the money comes from or how the initiative will be funded. Some common finance questions in different scenarios:

2. Present Your Case Effectively

In communicating with finance, we must avoid the pitfalls of an "emotional sell" and focus on providing finance professionals with the precise information they require for informed decision-making.

One particular format that is useful to apply in this context is C.R.E.R.[1]

This can be used to structure your conversations, emails or more formal proposals:

Let’s break down C.R.E.R.

• Context / Executive Summary: Clearly define what you are proposing and why it matters.
• Reward vs Risks: Explain the significance of the proposal, including the potential rewards of implementing it and the risks associated with not doing so.
• Economics: Provide a top-level overview of the costs involved, give the finance the information they need to assess the initiative's impact on the company's financials.
• Recommendation and Timing: Clearly state what you are requesting and when you expect it to be implemented.

By organizing your information in this structured manner, you can effectively communicate with the finance department. This approach significantly increases your chances of gaining buy-in for your proposals and initiatives.
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Conclusion: Making the Agency Finance Team Your Most Valuable Ally

Finance isn't the enemy but a valuable ally for your business. It's time to rethink how we perceive and engage with finance within our businesses.

Speak the finance team’s language by understanding their perspectives & priorities and presenting your case effectively. This will allow you to fully harness their expertise to drive your organization forward. Incorporating finance as a strategic partner can lead to improved financial performance, enhanced decision-making, and a stronger, more resilient organization.
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[1] The Great Client Partner, Page 57, Kindle Edition