MoneyWatch

6 Rules for Pitching to the CFO

By Geoffrey James

Updated on: May 14, 2009 / 11:44 AM EDT / MoneyWatch

Sales professionals sell solutions, so it's only natural to want to talk about them -- in as enthusiastic a way as possible. However, when you're talking to a CFO, you can't use the same angle and the same words that you'd use with a departmental manager, or even with a CEO. CFO want one thing: hard, tangible, grounded numbers using financial metrics CFOs understand and use to make their own decisions. Here are the six key rules for making sure you get the CFO on board:

RULE #1: Talk the numbers. Present the CFO with a top-level summary and detailed financial report with solid, quantified benefits and supporting analysis. Provide a detailed financial model so that the CFO can more easily understand the details and assumptions surrounding the analysis.
RULE #2: Keep it Simple. The financial model that you present to the CFO should be simple to understand and use. It shouldn't depend upon information that might be difficult to gather or which might not be available in a timely manner.
RULE #3: Make it Measurable. The financial model should have multiple ways of measuring ROI, so that there are different ways for the risk and return to be analyzed. And the financial model should have a complete set of metrics that based upon whatever the CFO wants to measure.
RULE #4: Keep it Real. Any analysis or estimates presented to the CFO should be backed up by demonstrable proof that the value proposition has been proven in the real-world. Weave benchmark and case study data into the analysis, offering concrete evidence of your claims.
RULE #5: Get some Objectivity. Many CFOs prefer to have an independent analyst be part of ROI analysis and measurement. This helps the CFO better assess the positive impact that the solution might have upon the overall corporate performance.
RULE #6: Set the Benchmarks. CFOs want to know how the impact of your solution will going to be measured throughout the life of the project and, more importantly, what remedial actions your firm intends to take if those performance benchmarks aren't met.

The above is based upon a conversation I had a while back with Bruce Scheer, principal at FutureSight Consulting, a marketing consulting firm. Smart guy.