Sales and numbers

People from the sales department are so dynamic and noisy, while people from the finance or accounting department are usually quiet and serious. Oftentimes, they clash. But sales and numbers shouldn’t clash.

Sometimes, it’s dangerous to have a finance person head an organization. Sometimes, the numbers person just sees numbers and doesn’t see potential. Cost-cutting is done here and there, but risks aren’t taken in order to expand a business. I’ve spent many years in business consultancy, and while I don’t discount the necessity of cost cutting and being financially prudent, I’ve yet to see a company that has shrunk its way to greatness.

Sometimes it’s also dangerous to have a sales person head an organization, especially if the sales executive isn’t interested in numbers. Coming from a sales background, he or she is most probably a “Can Do! Will Win! Rara-rara!” person and may be obsessed with just bringing in the sales, viewing any kind of company policy either a stumbling block or a stepping stone. This may bring the company to the ground.

The head of an organization needs to be a finance person who’s also a people person, somebody equipped with financial prudence, yet optimistic and excited with possibilities. The top honcho of the organization should also be a sales person who understands the importance of numbers, and carries enough fiscal sense to be careful in taking risks. In other words, you need to have a finance person who’s a salesman and a salesman who’s a finance person.

Optimism should be tempered with realism. Pessimism always brings forth cynicism. A year ago, I remember being called in by the head of a faith-based organization to be a consultant and to help promote a nationwide campaign for a project they’re launching. He laid out what he wanted in terms of marketing and promotions in order to make the campaign successful. It was a very aggressive plan.

Great ideas ran in my head. Numbers accompanied those ideas, so I asked, “How much will be given to me in terms of marketing budget so I would know how to carry this out?” The leader looked at me, feigned a prayer and said, “I don’t really know how much money I can give you, but I know my Father in heaven is very rich!” And every person in the room burst out in laughter and hearty Amen’s.

I asked a valid question and got a preposterous answer! And the one statement from the leader instantly portrayed me as a person lacking in faith.

I waited until the laughter subsided, and then said, “That’s so great! So tomorrow, I’ll call up the advertising agency. I’ll put on a one and a half million peso budget for newspaper ads. I’ll allocate two million pesos for radio ads, mostly on the AM channel since this is a nationwide initiative. And then I’ll have to post another one million peso budget for incidentals. So, when can I have the check?”

There was a surprised look on the visionary leader’s face, and he quickly responded, “But wait, Francis, I have to first clear with the board of elders and find out if we have that kind of money you’re asking for…”

His Father in Heaven may be rich, but it’s his board that makes the decision!

Being optimistic without being realistic is foolhardy and plain stupid. Being too focused on the numbers without seeing opportunities and taking some risks in growing the business is likewise disastrous in a time when hyper-competition is the norm of the game. The hardest to satisfy is balance, isn’t it?

We need both sales and numbers to run a successful business. And we need a lot of humility to realize this.

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