It’s not a new thing to see a CFO and a CMO are trying to bite each other’s heads off during the board meeting. It is the exact story that just happened a few days ago. In this episode, Michael shares the story, and the four things that help both departments to get along with each other, and ended up coming up with a strategic plan to move the company forward.
At the beginning of the board meeting, we had the CEO present all under the sun solutions to achieve revenue X. And he already had come up with a plan and budget to achieve that goal.
And CFO took that and decided to move the things around based on time and budget.
The following are the four things that established that push them forward during this board meeting.
How much money are we going to spend? And then what kind of result I want to generate?
One easy KPI to establish – Every dollar marketing generate, X dollar company’s revenue.
What are the things that I commit to doing? Marketing, for instance, write 1 article per day, send out 500 cold email per day etc. Establishing activity metric in each department, and have them to hold each other accountable.
Establishing a timeline to review the result metrics and activity metrics. If you made a small short tail wins, you’d be able to build the budget on top of it. So, build your own rhythm and timeline to review these metrics.
Imagine stop loss is basically the result metric, but on the bad side. What are the results that you’d like to see based on the timeline and the milestone you had set? For example, the first 15,000, I need to see at least X in return – otherwise, we need to shut it down, or revisit it, talk about it, and fix it.
These are the four things that can help CEOs to facilitate your strategic meeting through metrics. Let us know if you have any questions! Until next time, hope you guys are growing profitably!