How to speak CFO
By Wouter Ubbels
By Wouter Ubbels
CFOs are analytical, data-driven people who are typically looking for attributable, predictable, and efficient ways to add to the bottom line. It may appear to be impossible to find common ground with a cost-cutting, control-spending professional. Quite the contrary, LP executives have more common ground with these data-driven powerhouses than many might think. To find this common ground, it is imperative to speak CFO.
An interview with some of the most successful LP executives yielded these three basic rules they follow when speaking to CFOs:
While presenting, they are sure to use CFO-friendly terms as they make the essential connection between the loss prevention strategy and the company’s high-level business goals.
Profit. Growth. Revenue. Efficiency. Attribution.
Any loss prevention program can stand behind and knowingly support these CFO-friendly terms. The secret is to intertwine the loss prevention need with the CFO’s desired outcome…the bottom line. For example, shrink reduction equals profit. Profit leads to growth. Growth leads to increased revenue. Another example: safety equals employee longevity, which equates to efficiency and improved customer service. The same is true for solid, well-strategized loss prevention programs in which the ultimate deliverable is an absolute, measurable return on investment (ROI). It is well known that the ROI is what CFOs and senior executives are most concerned with at the end of the day. With measurable ROI, the most successful loss prevention programs shine the spotlight on the future and value of the company, the heart of a CFO.
Failure to speak CFO and make the connection between company goals and loss prevention programs decrease the chances of obtaining the funding loss prevention initiatives require. Funding will most likely come from one of two financial categories: Capital Expenditure (CAPEX) or Operating Expenditure (OPEX).
The most successful Loss Prevention executives are willing to discuss the justification of which option would best fund the loss prevention initiative that is being proposed. With three rules, two financial options, and one language, LP executives have the perfect combination to winning over their CFO.
Does it still make sense to count stock manually? ...Read more
Are you interested in the world of UX design and its role in revolutionizing RFID technology for retail? Have you ever wondered how user-friendly apps are crafted to enhance the......Read more