Tips and tactics: What to do when the CFO always says no

Dear Bob …

When I took this CIO position nine months ago, it looked like a terrific opportunity. It was a step up for me (I used to be head of application development for a different company), and both the company and IT group are small enough to be comfortable. I manage a team of 8; the company has about 250 employees.

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That was before I learned the CFO’s nickname: Dr. No. Turns out that no matter what the request and no matter who it’s from, he just says no. The business case doesn’t matter. The opportunity doesn’t matter.

Here’s what does matter: how many times someone has brought it up, in how many ways, and how much they’ve trimmed from the original request.

Usually, four or five tries and about a third off the original cost will do it. And you have to appear properly contrite about asking him to spend the company’s hard-earned money.

It isn’t that I can’t play this stupid game. I’m getting good at it. That doesn’t change that it’s just a stupid game and an incredible waste of time.

Any thoughts?

– Bond. James Bond.

Dear Mr. Bond …

As someone once said, the only thing worse than having to play stupid games is losing stupid games. Congratulations on recognizing this for what it is: a stupid game.

Having worked for and with a number of CFOs in my career, I think what’s going on is that when it comes to spending, CFOs fall into two broad groups: those who think in terms of investment and those who think in terms of cost. As a general rule and according to theory, all CFOs should think of spending in terms of investment — that is, what the company will get back in exchange for the amount spent. That’s the theory, and it’s a good one.

There are, however, companies that for one reason or another have run out of growth. They sell in “mature markets,” to use the euphemism. It means the customer population isn’t increasing, and the suppliers to the marketplace are all the more afraid of losing what they have than going after the rest.

My opinion is that any company that’s run out of growth has run out of courage at the top. Unfortunately for you, your CEO hasn’t asked my opinion. Instead, he/she is, I’m guessing, resigned to the status quo. I’m also guessing the CEO likes to be liked, which means preferring not to be the one to say no.

Here’s where this ends up: With growth not an option, any spending that doesn’t result in direct, tangible cost savings is spending that will reduce profits. That being the case and the CEO not wanting to be the bad guy, the job of refusing most spending requests falls to the CFO, who, after enough years, has turned “no” into a reflex.

What can you do about it? First of all, do your own analysis as to why it is the CFO turns things down so reflexively. You might even decide to sit down and ask him directly.

But be prepared to continue playing the game. The CFO is who he is, and as it appears, he’s been there a while and the CEO is clearly comfortable with their division of labor.

If it gets to the point you just can’t stand it anymore, you might consider taking up a martial art — or maybe racquetball — so that you have an outlet for your aggression.

Or you may decide this isn’t the company for you and find a different situation that’s more to your liking.

As an aside: Choosing not to grow is a different matter and an entirely different story. The owners of some usually small, usually privately held companies may decide that growth may change their company into something they won’t particularly like. As I say, that is an entirely different situation. I doubt this is what you’re dealing with.

– Bob

This story, “Tips and tactics: What to do when the CFO always says no,” was originally published at InfoWorld.com. Read more of Bob Lewis’s Advice Line blog on InfoWorld.com or subscribe to the Advice Line newsletter for the latest wisdom on managing your IT career.