If your goal is anything but profitability — if it’s to be big, or to grow fast, or to become a technology leader; you’ll hit problems.
Michael Porter
Moving ahead in a marketing career in most mid to large businesses requires a mastery of many skills. Junior assignments require individual creativity across a broad set of tactical tools – package designs, logos, PR campaigns, social media projects – and the ability to get those projects out the door. Senior assignments require more people leadership, strategy development and the ability to motivate the organization.
Many marketers overlook the skill of financial acumen – forecasting, budgeting and P&L management – until it is too late. We just don’t focus on adding profit metrics to every strategy, lowering costs, obsessively concentrating on budgets and P&L line comparisons. However, business owners and senior executives think about little else than financial performance. Surveys show just how discouraged the CEO is by marketing’s lack of interest in financial performance – from the CMO down through the ranks. Marketing is changing and is becoming a more financially driven role.
Four Practical Tips to Become Numbers Driven
So what if finance is just not your strong suit? Use this new year to make a change. Here are four very practical tips to develop a strong understanding of the profitability of your business or division.
- Look at financial results every week. Take that report no one looks at and see what it says.
- Ask questions that owners, not employees, ask. For example, how much overhead does your team cost the company in salaries, travel and equipment? Surprisingly, many marketers never ask to see this. What are you spending this year compared to last year? If you don’t have the data handy, ask the finance folks to see the data. It will be very revealing.
- Ask the boss if you can take ownership of a line of spending – not just to report and track, but have specific accountability to come in on or under budget. You might just shock them.
- Ask a simple question about everything your team does – how much extra profit will this project bring in? While this may not be your goal, you can be sure it is senior management’s goal.
While we all would much rather be implementing the next great campaign idea, the fact is, it is only the financial results (as well your ability to explain them) that count to senior management – and therefore your career.
