Webinar: Why & How to Break Down the Wall Between Marketing and Finance
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The document discusses the crucial yet challenging relationship between marketing and finance within organizations, emphasizing the importance of strong collaboration to shift the perception of marketing from a mere cost center to a strategic investment. It outlines five essential discussions to foster this relationship and highlights the statistics indicating that a majority of marketers do not view finance as a trusted partner. Effective communication and alignment on revenue targets and key performance indicators are essential for improving this partnership.
Webinar: Why & How to Break Down the Wall Between Marketing and Finance
- 3. Today’s Agenda 1. Why is the Marketing-Finance relationship so important? 2. Why is it so hard? 3. Five must-have discussions 4. Q&A
- 4. Poll How would you describe the relationship between Marketing and Finance at your organization? 1. We’re like life-long dance partners 2. There’s respect, but no love 3. Like Trump and Kim Jong-un
- 5. Why the Marketing-Finance Relationship Is So Important Tear Down The Wall September 2017
- 6. Marketing is the largest source of discretionary spend in the company. And Finance holds the purse strings.
- 7. Strong CMO/CFO relationships help the CMO redefine the perception of marketing from a cost center to a strategic investment and P&L center. SiriusDecisions
- 8. Marketers live and die by the numbers.
- 9. 3X 2017 MPM Maturity Benchmarking Report, Allocadia High-growth companies are three times more likely to collaborate with Finance to track investments and measurements.
- 10. “I recommend bringing the finance partner as close as possible...almost consider them an honorary marketing team member.” Ken Evans, Senior Director of Marketing Operations, Fuze
- 11. “Only 14% of marketers say Finance is a trusted strategic partner. 28% have little or no relationship at all.” Allocadia Marketing Performance Management Benchmark Survey, 2016 http://bit.ly/mpmbenchmark
- 12. Why is it so hard? Tear Down The Wall September 2017
- 13. Marketing is the largest source of discretionary spend in the company. And Finance holds the purse strings.
- 14. “Marketing is the most visible discipline in the C-suite, and hence the most exposed when the company misses its targets or objectives.” Allison Cerra CMO, McAfee
- 15. Forecasting
- 16. Amortizations
- 17. Accruals
- 19. Trust
- 20. 5 Must-Have Conversations Tear Down The Wall September 2017
- 21. 1. Annual revenue target, and Marketing’s share
- 22. 2. Other Marketing KPIs
- 23. 3. Align Marketing cost centers with Finance G/L accounts
- 24. 4. Define and manage the process for amortizations and accruals
- 25. 5. Define and understand Customer Value
- 26. Carey Rutigliano Director, Financial Planning & Analysis Allocadia is an awesome tool. It is simple to use as well as intuitive. It provides the Marketing and Finance organizations what they need and what it shows us is not just budgets, but it helps us understand the health of our business.”
Editor's Notes
- #3: This is the slide I wanted to open with, but my marketing director wouldn’t let. Something about it being off-brand, and a copyright infringement. Oops… full attribution to Roger Waters and Pink Floyd!
- #6: Jeff: Here’s my perspective of why it’s important CEOs lean heavily on their CFOs to balance and optimize operational and financial business performance and position the company to investors. Accordingly, CFOs are often the CEO’s right hand and have a great deal of corporate longevity and broad influence over functional operations and budgets.
- #13: Jeff: We ran a survey last year asking about this very topic, and here’s what we heard
- #14: Impact of dialing up and dialing down spend
- #17: Cash position
- #18: Timing – 6-month lag! Details – he said/she said Cash position
- #20: Tattle-tale – misreprnsented by finance if marketing isn’t in the room with the CFO/COO Bad Cop
- #21: CMOs must engage CFOs as a real business partner year-round – not just during planning and budget season. Establishing a solid relationship with the CFO will help the CMO redefine the perception of marketing from a cost center to a strategic investment and profit center, serving both leaders with more efficient and aligned corporate growth.
- #27: Add screenshot Confidential