Sales Run Organizations Versus a Finance Run Org

For any seasoned sales person, working in a sales run organization is a dream. It gives you all the tools you need and the trust of good management. You know the strategy is driven by growth and its customers first and foremost. I’d say most organizations, especially in SaaS, all start out this way.

Almost all organizations think of themselves as a ‘sales run’ organization, because why wouldn’t you- revenue, sales, they’re our priority- that’s how we keep the lights on! 

“Our customers are our biggest priority!” 

“We have a stellar sales team and they’re blowing through sales numbers!”

“We pay our sales team well and give them commissions to meet our budgets!”

All of those things above may be true in some light–  I’d sure hope that customers are a big priority and that you’re paying your sales team well. However, those things still don’t mean you’re a sales run organization. Sales run organizations create, instill, and continue to develop a culture that removes obstacles for the customers and the team that inevitably answers to them (sales and customer service). That means a feedback loop that not only records sentiment, but is able to apply and pivot those learnings to the product and process, and quickly if possible.

When the margins get tighter, pressure from shareholders increases, the bill finally arrives on past reckless spending, other portfolios struggle that you must make up for, acquisition model performance challenges, or a maturing product—- that sales glow, focus, core has people start looking at the business differently. Usually the CFO starts making more decisions that are reactionary rather than a visionary CEO or Chief Growth Officer.  Sales costs now seem like every other expense. The conversations evolve to saying they’re paying the sales people too well, or their job is ‘too easy and anyone could do it’, and that T&E is too expensive. The budget meetings go something like a funny game show of let’s pretend you can squeeze another 15% out of the top line and remove 15% of the bottom line without any rationale. 

Most senior leaders in any department in any organization can relate to the above. You’ve found yourself in a finance driven organization.  A marketer, an operations lead, customer service, even HR department works completely differently when we’re truly prioritizing growth and sales versus cost containment. This doesn’t mean frivolously spending or not looking carefully at spend- it is a question of philosophy and you can see it in the overall mood and decision making process. You can see it in who has the final say.

To be clear, you can’t have sales without finance or vice versa. When a sales run organization has great partners in the finance dept, it is absolute magic. It is the balance. You obviously have to take into account all financial metrics, meet budgets, etc., but the financial part should be consistent and coherent with the strategy, NOT driving the strategy.  There is a tangible difference when a finance manager just ‘gets it’.

I envy the startups- they get the courage to keep changing and listening, maybe because they have to. The larger companies with shareholders to answer to, they get scared of making the changes that are needed because of the expense. But that focus on the expense, the risk ends up being why you must do last minute fixes with bubblegum and dental floss or bail water out of the boat of a sinking portfolio.

It’s tough– and I’m not saying that finance run organizations are bad. There is no good or bad for every situation; however, senior leadership needs to be honest with themselves. Who is driving the car? Are we sales driven or are we letting finance drive? Don’t be surprised based on the answers how that affects customer retention, new product development, NPS, the ability to retain and attract new talent. I have heard over and over recently how hard it is to hire ‘good sales people’. That may be true, but perhaps a good look under the hood of your own organization and how the sales culture actually is, is a good place to start. All things equal- a potential sales candidate or a current sales executive will choose to work at a sales driven org versus a finance driven org everyday.