Mondelēz CFO explains how to get your marketing budget approved
Budget approvals are one of the challenges that CMOs face in their work. Having to convince their CEOs and CFOs that the marketing plan is worth every dollar can sometimes be an uphill battle. A recent Adobe study titled “State of B2B marketing in Asia” found that 28% of marketing managers agreed or strongly agreed that “marketing is simply seen as a cost center supporting sales”. While some marketers might see CFOs as one of the hurdles to overcome when it comes to securing budgets, Mondelēz International CFO Lin Tze Lau (pictured) says the finance function is there to help set long term financial goals in order to achieve strong goals. growth and strong margins, and now to expand into new segments and channels.
“It’s probably not surprising that the finance function tends to be seen primarily as accountants or bookkeepers, or people overseeing budget strategy,” said Lau, who oversees the finance portfolio for Malaysia, Singapore and Brunei. . However, she explained that her marketing colleagues understand that her role is to support them as both parties work together to achieve positive results and advance the company’s growth agenda.
Prior to joining Mondelēz, Lau was Head of Finance at Wrigley, overseeing Malaysia, Singapore and Brunei for over a year. She also worked as a management controller at L’Oréal for about four years, according to her LinkedIn. Having amassed years of finance experience at renowned companies, Lau said listening and keeping an open mind are key to building a good working relationship with the marketing team. “We may be from different functions, but it is important that we are willing to work together for a common goal,” she added.
Communication and sharing are also essential. Ultimately, marketing and finance share the same goal of enabling people to eat well, and Lau said it’s about building a common understanding of how each function sees the way forward.
According to her, Mondelēz prides itself on being purpose and value driven, and that doesn’t change even when it comes to securing budgets. She said it was important to ensure that all business functions understand the value any given investment will bring, including how it can drive growth in our financial KPIs or drive gains in external KPIs.
In the end, it’s all about negotiation. Personally, I see this as a two-way street, where it’s important that all parties listen, keep an open mind and are willing to collaborate.
For Lau, the conversation should always be about how the business can optimize performance, create meaning, and accelerate value, not about arbitrarily cutting budgets. Highlighting Mondelēz’s goal of leading the future of snacking and empowering consumers to snack, Lau explained that the partnership between marketing and finance as well as sales is important to ensure the company achieves its goal. . Building a healthy partnership requires close communication and collaboration as different functions analyze and reinforce business cases to achieve solid growth. “It also aligns with my own personal philosophy, as I strongly believe in the meaning of a TEAM – together everyone achieves more,” she added.
The teamwork effort is also facilitated at Mondelēz because the company does not work in silos. “Because we don’t work in silos, we are able to break down barriers and create a more cross-functional understanding of everyone’s roles,” she said. For example, while the head of marketing oversees consumer-driven growth, Lau knows that she herself is trustworthy as a financial partner to hold marketing accountable to the financials.
While the finance team is often assumed to be tightening the purse strings, Lau remains reasonable and objective when it comes to assessing the demands of the marketing team. Investments that aim to build a platform for the future and help Mondelēz become the leader in its category are less likely to be rejected, she said. Additionally, investments that generate equity gains or propel the company to become the market leader in its major categories are also more likely to capture its attention.
“There are also campaigns that really show how we put consumers first, creating relevance and connection at the heart of those plans,” she said.
A recent report from the CMO Council said that C-Suite executives have growing confidence in the customer-centricity of marketing leadership, with 62% of respondents to its survey considering the CMO’s essential role as an “advocate and champion of the ‘customer experience’ in their organization. The majority of C-Suite executives also associated the “custodian of brand reputation and creator of value” descriptor (51%) with CMOs.
Similarly, Lau also sees marketing as the heart of the organization, helping to drive growth by keeping up with changing consumer needs and ensuring that Mondelēz continues to meet those needs. Beyond his day-to-day finance responsibilities, Lau is also part of the management team in Malaysia and Singapore. The team meets monthly to make important business-level decisions that go beyond its immediate scope and core responsibilities such as people.
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Read the rest of the interview here:
A+M: What is the best part of your role?
Lau: As a finance manager, I’m fortunate to be able to work with many great talents and develop them within the company, and I consider investing time with cross-functional talent and mentoring to be a crucial role. I also have the opportunity to collaborate with other functions within Mondelēz, which gives me clear visibility across the organization and positions me as the right hand of our CEO, a responsibility that I uphold and take seriously.
Apart from that, I also consider myself lucky that the values of the organization are aligned with mine. Mondelēz is committed to maintaining its diversity and inclusion program, which focuses on three pillars: colleagues, culture and community. In particular, our efforts to give back through the community pillar, such as programs to feed the needy, are those close to my heart.
A+M: What is the biggest challenge in your role?
Lau: As a business value ‘engineer’, there is an ongoing challenge of balancing pressure on top line and bottom line. I work alongside my fellow leadership team in Malaysia and Singapore, which requires more space for collaboration and leading with purpose.
Another challenge that I believe is one that many will also share relates to talent retention and growth. Over the years, I’ve realized that it’s not an easy task, but it’s also a challenge that I really enjoy. Mondelēz’s winning growth culture of every employee having a growth mindset, feeling empowered and nimble, helps us shape the next generation of employees and a highly engaged workforce.
To achieve this, we have developed a leadership framework based on three values: to love our consumers and our brands, to grow every day and to do what is right. Each value has corresponding commitments and behaviors needed to support that culture, which sets us apart in the industry and helps us lead the future of snacking.
A+M: How has the pandemic changed your role and impacted your work?
Lau: Since the start of the pandemic, I have been part of the special situation team to mitigate the challenges posed by COVID-19. The pandemic has changed consumer behaviors, from where they now buy to the type of products and brands they prefer. There is a clear preference for brands that consumers can trust, and more than ever the company must maintain its commitment to growth and operational excellence. We all needed to adapt and be more agile.
On a more personal level, the shift to working from home has meant learning to make space and time to leave work and take regular breaks. For example, my team is encouraged to take appropriate lunch breaks, schedule meetings after 9:30 a.m., get up early on Fridays, and take vacations when needed. Mondelēz launched ‘The Right You’ movement last year to empower employees to prioritize their well-being, with pillars such as ‘The Right Body’ and ‘The Right Mind’ to encourage self-care. our own physical and mental health, which I found was a big help for my team and me.
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