On the positive side, many finance directors recognise that such criticisms are often justified. They accept that finance is partly to blame for not seeking to redress the situation. Encouragingly, it was universally agreed, particularly by younger finance directors, that the marketing department provides the lifeblood of a company and that its creative spirit is essential for business growth. They perceive that one of the key challenges is learning how to "manage" marketing. Opinion on how to do this falls into two camps: the old school and the new.
MARKETING AS A LIFEBLOOD OF A COMPANY
Rather than confront the conflict, the "old school" works around it. The traditional approach is to assume that marketing's forecasts were wildly opti- mistic and hence protect the overall budget by making allowances elsewhere. Such finance directors expect to cut the advertising budget before the end of the year to make up the difference - which is an easy way to generate instant funds without incurring a penalty. They prepare external audiences for the results they expect rather than those that the marketing department has pre- dicted. The "old" solution is based on avoidance, resulting in a widely acknowledged compromise for both departments. However, a new forward-thinking group of financial directors is emerging which sees an opportunity for marketing and finance to work together. Key to its thinking is communication. Almost all finance directors acknowledge that they rarely meet marketing people - often only twice a year.