CTOs - How to Make the CFO Your Best Friend

When it comes to your C-suite peers, you definitely want the CFO to be on your side and in your corner. However, that doesn’t always just happen. Like it or not, the CFO is often the make or break to get your strategy/agenda approved and funded. Key word: funded.

So, what can you do?

1.????? Understand and speak their language.

Yes, there is a language of money, and, like English, it’s the most common language spoken at the C-suite table. Get educated on the financial terms (like EBITDA), know what the idioms mean (what’s “dry powder”?) and get familiar with the vocabulary.

Of course you have technical terminology and phrases, but you’re better off learning the language of finance rather than waiting for your CFO to come around to your language. Until then, you’re speaking two languages.

2.????? Understand the CFO’s motivations.

The CFO is a strategic business partner to the CEO. Not only are they the protector of funding, but they are a fiduciary of the company. They take their role (and mission) very seriously and take pride in being the keeper of the company assets. It’s just like the pride you have in being the keeper of the technology strategy and roadmap.

This means taking greater care and respect for the budgeting process, for the decision-making it drives and for the thoughtfulness that goes into making these decisions. How might you treat funding requests differently if you put yourselves in the shoes of your CFO?

3.????? Understand what is important to them.

What is most important to you is likely not the most important thing to your CFO. Make it your business to know what the CFO’s priorities are. In conversations, lead with what they care about first.

Just like you, they are looking at metrics. However, they’re looking at different metrics. CFOs aren’t just looking at costs – they’re evaluating risk, how long an investment will take to deliver a return, the likelihood of generating a return to the business (that is greater than the cost of capital), what opportunities will have to wait or get rejected to fund your strategy, how much time will they have to tie up capital to support an investment?

Disclaimer: if this last paragraph made your head spin, you’re not alone. Your CFO would be thrilled to help you understand how finance works. No one ever asks them. In fact, next time you’re negotiating a big contract, ask the CFO for advice. They will appreciate your thoughtfulness and it will strengthen your relationship.

In a nutshell, it’s about taking the time to understand where the CFO is coming from and how to communicate with them. It also requires you to acknowledge what the CFO is trying to accomplish and the decisions they are weighing.

Is it worth it? You bet your bottom dollar is it!

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P.S. This works for anyone who wants to make the CFO their best friend ??