10 Ways to Win Over Your CFO
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Assess Your CFO's Role
Depending upon your company's maturity, he's either a builder (hired within the first five years), an enabler (hired after the first five years) or protector (post-IPO or after a decision to remain private). -
Be Prepared to Defend Past IT Purchases
Do research. Read analysts' reports. Talk to peers. Demonstrate how tech decisions led to business-serving initiatives. -
Focus on Buying Without Selling
Like anyone else, CFOs like to buy good things. But don't get too hyped by overselling here. Stick to what's proven and documentable. -
Understand the Essence of Finance
A CFO is primarily concerned with an IT acquisition's impact on cash flow versus earnings, allocation of resources and timing. You need to figure out how the last part will impact the first two. -
Make ROI Stories Relevant
Find ones within your industry which demonstrate how the tech acquisition in question helped companies solve "real" problems. -
Dig Into the Details
You'll have to answer lots of sharp questions: Is this new tech or is it replacing something old? If the latter, why is it outdated? Is this a one, three or five year investment? License or subscription? -
Always Remember That CFOs Love to Win
So ask for more than you need, so you have room to give something up. -
Set an Appealing Time Frame for Pay Back
Hint: Anything beyond three years is not soon enough. -
Know When Not to Bring Up an IT Request
Never at the end of a quarter, because that's when the CFO is squaring books while helping sales close deals. And not during any board-meeting week. -
Know When to Bring Up an IT Request
The sweet spot of IT-acquisition pitch timing: Sometime during Q3, when funds are often uncommitted.
He doesn't claim to be an expert on all things tech. But you can't address him as if he's an IT neophyte either. He's known for asking the tough questions. But, ultimately, he has the interest of your entire organization at heart. He's your CFO. And it's very likely that you won't be able to justify a single, major tech deployment without his backing. Which means you need to talk his language in proposing an IT acquisition. With this in mind, consider these 10 tips on pitching the CFO from Ken Goldman, who is CFO of Black Duck Software, which markets open-source solutions for governance and compliance for automotive, finance and other industries. For starters, it's wise to focus on shared interests with the CFO instead of your differences, Goldman says. After all, both of you want to see the company succeed. Secondly, you should craft any proposal with a business-minded approach, using sound documentation and dialing back on any blustery sales talk. And you must have an answer for all of his questions—before he asks them. For more about Black Duck, click here.
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