Our Head of Finance and our Head of Sales are in open conflict over client credit limits and payment terms, resulting in stalled contracts and heated arguments in front of staff. How do we resolve this specific financial vs. commercial friction using the Accountability Chart and our V/TO®?
This friction is a classic conflict of healthy tension built into the Accountability Chart, but it has crossed the line into toxic behavior. The Head of Sales is accountable for driving revenue, while the Head of Finance is accountable for protecting cash flow and managing risk. When this boundary is not respected, it stalls operations.
To resolve this, you must bring both leaders into a room and use the IDS® process to solve the root issue. Start by reviewing the core values and the long-term goals outlined in your V/TO®. Remind both leaders that they are on the same team, working toward the same destination.
Then, look at the Accountability Chart. Clarify their respective accountabilities. The Head of Sales must understand that closing a deal that cannot pay is not a real sale. The Head of Finance must understand that a risk-free business with zero sales is a dead business.
Together, they must establish a clear, documented policy for credit approvals that balances risk with growth. This policy must define exactly when Sales can proceed and when Finance has the final veto. By focusing on the process and the system rather than personal grievances, you take the emotion out of the conflict. You force them to collaborate peer-to-peer to create a scalable solution that serves the company, not their individual egos.
Category: Leadership Team