Breaking silos, achieving success

Sarah-Jayne Martin at Quadient explains how collaboration drives smarter decisions

 

In today’s volatile business landscape, organisations navigate a sea of hurdles. From recent tax hikes, such as the National Insurance Contribution (NIC) increase for employers, to supply chain disruption affecting global trade, organisations are under pressure. The recent increase in US tariffs on the UK and EU is yet another example of the type of obstacles businesses are facing, forcing companies to fight fires on all fronts.

 

During these uncertain times, financial stability and strategic agility is more critical than ever. But, a common misconception persists that the finance function is solely about number crunching. Finance plays a far more strategic role. Finance encompasses analysis, forecasting, and decision-making, all of which strengthens resilience and helps to drive profitability across the organisation.

 

However, finance cannot drive success in isolation. To thrive in this challenging environment businesses must encourage collaboration between key departments like finance, sales and procurement.

 

 

Finance as a strategic partner

Finance now plays a central function in influencing business strategy despite traditionally being viewed as a back-office function. In fact, finance teams are moving beyond traditional financial planning and analysis to drive business performance. According to a recent survey, 58% of CFOs report spending more time on business performance management than they did a year ago. This shift goes beyond numbers – it involves finance teams promoting collaboration across departments to enhance company-wide efficiency and resilience.

 

Finance’s role in working closely with other teams is key to this collaborative approach. With sales, finance ensures payment terms and credit risk policies support revenue growth and maintain healthy cash flow. While in procurement, finance strategically manages supplier payments to balance financial stability with operational needs. 

 

Research shows that companies with high levels of cross-functional collaboration achieve 30% higher efficiency gains than those operating in rigid silos.

 

 

The silo problem

Why do businesses struggle to align finance, sales, and procurement? While the benefits of cross-functional collaboration are clear, many organisations still operate in silos, which undermines agility and limits informed, real-time decision-making. One of the biggest barriers is fragmented data systems, where different departments rely on separate platforms that don’t communicate effectively between each other.

 

This lack of integration prevents teams from accessing a unified view of business performance, ultimately delaying critical decision-making.

 

Beyond data challenges, misaligned priorities can create friction between internal teams. For example, sales may focus on aggressive revenue growth, while finance prioritises cash flow stability. Without alignment, these competing internal goals can lead to inefficiencies and missed opportunities, such as delayed customer deals due to stalled negotiations between finance and sales teams.

 

Compounding the issue are outdated and inefficient workflows which slow operations and reduce organisational agility. Many companies still rely on manual and time-consuming processes for tasks that could be automated. For example, staff using spreadsheets to manually match transactions against bank statements. These cumbersome tasks create bottlenecks that prevent fast, data-driven responses to shifting market demands.

 

 

Unifying teams with AI and automation

AI and automation play a crucial role in unifying teams by centralising data and optimising processes. By centralising financial data onto a unified platform, organisations can provide real-time, accurate insights that are accessible across departments. This visibility empowers teams to make faster, more co-ordinated decisions.

 

For example, sales teams can instantly access key financial indicators such as up-to-date revenue trends, customer payment histories, and credit risk assessments. This allows the sales team to refine pricing and discount strategies with more accuracy. Simultaneously, procurement teams benefit from visibility into budget constraints and current cash flow, enabling teams to make smarter purchasing decisions and boost overall financial stability.

 

This visibility into shared data not only eliminates information silos but also enhances operational efficiency and promotes a more connected and collaborative environment. In fact, Gartner predicts that by 2026, 80% of finance teams will use AI as an essential tool for driving improved decision-making. 

 

 

Cultural shifts and collaboration

While technology plays a key role in enabling collaboration, true cross-functional alignment also depends on cultural and process-driven change. Without the right mindset and ways of working, even the most advanced tools can fall short.

 

Key cultural shifts are essential to break down silos and foster meaningful collaboration between finance, sales, and procurement. One of the most impactful cultural changes is introducing shared key performance indicators (KPIs) – such as cash flow efficiency, revenue growth, and supplier cost optimisation. This helps teams to align around common goals. Regular cross-functional planning sessions are also critical, creating space for open communication, strategic coordination, and early issue resolution.

 

Above all, leadership buy-in is crucial. When senior leaders actively support and model a collaborative strategy, it sends a clear message across the organisation – working together isn’t optional, but rather foundational to long-term success.

 

 

Tech and culture: two paths to transformation

Breaking down silos between finance, sales, and procurement is no longer a ‘nice-to-have’ – it’s essential for sustainable business growth. While AI and automation offer powerful tools to integrate data and enhance decision-making, technology alone isn’t enough. True transformation also requires a cultural shift toward shared goals, open communication, and cross-functional collaboration.

 

Organisations that embrace technological innovation and cultural change will be far better equipped to navigate uncertainty, optimise financial performance, and make smarter and more strategic decisions in an increasingly complex landscape.

 

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Sarah-Jayne Martin is Director of Financial Automation at Quadient

 

Main image courtesy of iStockPhoto.com and skynesher