How To Resolve The Contradiction Between The Finance Department And The Business Department?

Speaking of finance, there is always an eternal topic, that is, the conflict between the financial department and the business department.

Take the common credit sale management in the buyer's market as an example, as a sales department, we first hope that the more the goods shop will go out, the better the sales opportunities and market share will be.

Taking the most intense budgetary planning for conflict as an example, there are usually several prominent problems in the budgeting process of local enterprises at present.

First, corporate budgets often drift away from corporate strategy.

In the absence of corporate strategy, budgeting management will pay too much attention to short-term activities and neglect long-term goals, so that short-term budgetary indicators and long-term enterprise development strategies are not suitable.

Second, the budget of enterprises is far from the real market environment.

At present, domestic enterprises often carry out budgets in a closed mind. In the process of budget management, they neglect the research and prediction of the market, making many budget indicators incompatible with the external environment of enterprises, and the whole budget index system is difficult to convince business departments.

Third, the budget of enterprises is often reduced to a pressing index game, and the budgeting of enterprises lacks the necessary objectivity.

Many times, in order to meet the needs of growth, enterprises will set historical indicators and past activities on the basis of artificial growth rate to determine future budgetary indicators.

In this way, the budget will become a process of pressing indicators, which is bound to cause a strong rebound in the business sector.

In the CFO's "2005 China CFO survival survey", two groups of data were found. 16% of respondents thought that the "conflict with the business sector" was the biggest challenge. At the same time, 65.09% of the respondents took a lot of time and energy to understand the needs of the business department.

These two sets of data themselves show that on the one hand, the contradiction between finance and business is undeniable, but on the other hand, local CFO is also trying to find ways to solve it.

"First of all, confrontation is certainly not conducive to solving problems.

Different departments in the company only decide the starting point of different thinking, but in fact, both sides should achieve the same goal.

Dong Xiaoqi, chief financial officer of Ted group, is very good at empathy. "It is important to establish a trust mechanism between business departments. The financial department should become a decision assistant of the business department to help business departments achieve standardization of business processes, improve risk control capabilities and reduce marketing costs."

According to the analysis of Marx Webb, who is the author of Protestant Ethics and the spirit of capitalism, there are actually three legal powers in social life, namely, statutory power, traditional power and supernatural power.

Statutory power derives from the legality of law, traditional power comes from inheritance and traditional habits, and extraordinary power derives from worship of leader heroism and exemplary quality.

Accordingly, some Western leaders of theoretical research scholars have promoted the three sources of the power of enterprise leaders: one is the role strength, that is, the power generated by their duties; the two is the strength of personality, that is, the strength generated by individuality; and three, the power of experts, that is, the power generated by knowledge and skills.

Therefore, in the practice of leadership, all sources of power exist and can not rely entirely on one source.

"When I have time, I will have a working lunch with a vice president of a company. I can talk about business, or I can not talk about it.

Chen Jing's practice has very strong practical significance.

Facing increasingly stringent regulation

For this reason, the local CFO should quickly change their ideas and realize that the financial department is changing from the collectors and providers of the enterprise operation information to the interpreters and consultants of these information, mainly by providing the information of multiple tasks and paction oriented activities, and providing more decision support and information analysis for specific industry departments.