When to Solve, When to Manage: A Key Distinction for Effective Leaders
Introduction
As a business leader, it’s easy to assume that every challenge you face is a problem to be solved. But what if some of those challenges aren’t problems at all? What if they’re tensions that, rather than being eliminated, need to be managed? Misidentifying the two can derail your team’s performance and even stifle the growth of your entire business.
The key to sustainable success lies in recognizing the difference between problems and tensions. This article will explore how the natural, ongoing dynamics between Sales, Operations, and Finance serve as a perfect example of healthy tensions that drive business growth when properly managed—but cause issues when treated like problems to be solved.
Problems vs. Tensions: What’s the Difference?
Problems are finite. They have clear solutions, and once resolved, they’re gone. Think of a broken process or a supply chain issue—there’s a fix, and once you apply it, the problem ends.
Tensions, on the other hand, are ongoing. They arise from the competing priorities and responsibilities of different departments and will never go away. They don’t have a final solution because they aren’t a problem to fix—they are a dynamic to be balanced.
The trouble arises when leaders mistake tensions for problems and try to “solve” them, which often backfires.
The Sales-Operations Tension: A Natural Dynamic
In most businesses, Sales is laser-focused on driving revenue by closing deals and expanding the customer base. Operations, meanwhile, is tasked with delivering on those deals efficiently, ensuring quality and meeting deadlines.
This creates a natural tension. As Sales pushes to increase revenue, Operations feels the strain of fulfilling that demand with the resources available. This dynamic can often seem like a problem, and the instinct may be to slow down Sales in order to “solve” the issue by giving Operations room to breathe.
But this tension is not a problem that can be solved by throttling Sales—it’s an ongoing relationship between departments that needs to be managed.
Operations and Finance: The Investment Strain
As Sales creates more demand, Operations often needs additional resources—whether it’s more staff, better tools, or new systems to keep up with the increasing workload. This, in turn, puts pressure on Finance, which must balance the need for investments with fiscal responsibility.
Finance’s focus is to control costs, manage cash flow, and ensure a strong return on investment (ROI). But when Operations needs new capital to scale, it creates another tension—Finance is hesitant to spend more, while Operations needs investment to improve efficiency and keep up with Sales’ demand.
A leader might think they can solve this tension by cutting back on spending or delaying investments. But that’s not a solution; it’s merely pushing the tension aside. Over time, this will hurt both Operations’ efficiency and Sales’ ability to deliver on promises, resulting in broader performance issues.
Finance-Sales Tension: ROI and Growth
Finally, Finance puts pressure on Sales to deliver returns on past investments and justify future spending. Sales is tasked not only with generating revenue but also with proving that each deal contributes positively to the company’s financial health.
This creates another tension, as Sales pushes to meet its revenue targets, while Finance seeks assurances that the business is getting a strong ROI. Trying to solve this tension by, for example, demanding immediate results from Sales will push the team into short-term thinking, which can hurt long-term growth.
The Flywheel of Managed Tensions
When these tensions between Sales, Operations, and Finance are properly managed, they create a positive flywheel effect:
Sales pushes Operations to innovate and scale, improving efficiency.
Operations pushes Finance to invest in better systems and resources.
Finance pushes Sales to deliver consistent growth that justifies investments.
When managed correctly, this cycle drives sustainable growth, operational efficiency, and financial health. However, if a leader tries to “solve” any of these tensions by slowing sales, cutting investments, or forcing short-term gains, they disrupt the flywheel and cause lasting damage.
The Leadership Challenge: Managing, Not Solving
To be successful, leaders must understand that these tensions are not problems to be solved but dynamics to be managed. This requires maintaining a balance between competing priorities:
Sales needs to grow, driving revenue and market share.
Operations needs to scale, improving efficiency and meeting demand.
Finance needs to control costs, ensuring the company remains financially stable and profitable.
Rather than eliminating the tension, a leader’s job is to make sure each department can push the others forward without stalling progress. This means fostering collaboration, ensuring open communication, and recognizing that the friction between departments is a sign of growth, not failure.
Managing Tensions with Accountability and Confrontation
A leader’s ability to manage these tensions effectively comes down to their willingness to face the tension head-on. This requires embracing confrontation and accountability in management meetings, especially between Sales, Operations, and Finance.
Seek Productive Confrontation: Avoiding tension only makes things worse. Leaders must create environments where Sales, Operations, and Finance can openly address their competing priorities without resentment. These confrontations are not about finding fault—they’re about ensuring that each department pushes the others in a way that benefits the entire company. Leaders must facilitate tough conversations and ensure they happen consistently.
Hold Each Department Accountable: Each department should have clear goals and metrics that align with the company’s overall objectives. Sales should be held accountable for driving revenue, Operations for delivering efficiently, and Finance for managing resources wisely. The tension arises when one department’s goals create strain on the others. Leaders must hold each department accountable not only for their own targets but for how their actions impact the other departments.
Lead with Transparency: To manage these tensions well, leaders must ensure transparency between departments. Sales should understand the constraints Operations faces, and Operations should recognize the financial pressures Finance is under. Likewise, Finance should understand the growth goals Sales is driving. Clear communication helps prevent misalignment and allows the team to work through tension productively.
Conclusion: Leadership Through Tension
Ultimately, the difference between good and great leaders lies in how they handle tension. A good leader might try to reduce or avoid tension, thinking that smoother operations are the goal. But a great leader understands that tension, when properly managed, is the key to driving growth, efficiency, and profitability.
By facing into the tension between Sales, Operations, and Finance—seeking productive confrontation and holding each team accountable—leaders can ensure that these natural dynamics fuel long-term success rather than holding it back.
The key to sustained growth isn’t solving every challenge. It’s learning to manage the tensions that drive your business forward, creating a culture of accountability and open dialogue, and embracing the tough conversations that help your company thrive.
When to Solve, When to Manage: A Key Distinction for Effective Leaders
Introduction
As a business leader, it’s easy to assume that every challenge you face is a problem to be solved. But what if some of those challenges aren’t problems at all? What if they’re tensions that, rather than being eliminated, need to be managed? Misidentifying the two can derail your team’s performance and even stifle the growth of your entire business.
The key to sustainable success lies in recognizing the difference between problems and tensions. This article will explore how the natural, ongoing dynamics between Sales, Operations, and Finance serve as a perfect example of healthy tensions that drive business growth when properly managed—but cause issues when treated like problems to be solved.
Problems vs. Tensions: What’s the Difference?
Problems are finite. They have clear solutions, and once resolved, they’re gone. Think of a broken process or a supply chain issue—there’s a fix, and once you apply it, the problem ends.
Tensions, on the other hand, are ongoing. They arise from the competing priorities and responsibilities of different departments and will never go away. They don’t have a final solution because they aren’t a problem to fix—they are a dynamic to be balanced.
The trouble arises when leaders mistake tensions for problems and try to “solve” them, which often backfires.
The Sales-Operations Tension: A Natural Dynamic
In most businesses, Sales is laser-focused on driving revenue by closing deals and expanding the customer base. Operations, meanwhile, is tasked with delivering on those deals efficiently, ensuring quality and meeting deadlines.
This creates a natural tension. As Sales pushes to increase revenue, Operations feels the strain of fulfilling that demand with the resources available. This dynamic can often seem like a problem, and the instinct may be to slow down Sales in order to “solve” the issue by giving Operations room to breathe.
But this tension is not a problem that can be solved by throttling Sales—it’s an ongoing relationship between departments that needs to be managed.
Operations and Finance: The Investment Strain
As Sales creates more demand, Operations often needs additional resources—whether it’s more staff, better tools, or new systems to keep up with the increasing workload. This, in turn, puts pressure on Finance, which must balance the need for investments with fiscal responsibility.
Finance’s focus is to control costs, manage cash flow, and ensure a strong return on investment (ROI). But when Operations needs new capital to scale, it creates another tension—Finance is hesitant to spend more, while Operations needs investment to improve efficiency and keep up with Sales’ demand.
A leader might think they can solve this tension by cutting back on spending or delaying investments. But that’s not a solution; it’s merely pushing the tension aside. Over time, this will hurt both Operations’ efficiency and Sales’ ability to deliver on promises, resulting in broader performance issues.
Finance-Sales Tension: ROI and Growth
Finally, Finance puts pressure on Sales to deliver returns on past investments and justify future spending. Sales is tasked not only with generating revenue but also with proving that each deal contributes positively to the company’s financial health.
This creates another tension, as Sales pushes to meet its revenue targets, while Finance seeks assurances that the business is getting a strong ROI. Trying to solve this tension by, for example, demanding immediate results from Sales will push the team into short-term thinking, which can hurt long-term growth.
The Flywheel of Managed Tensions
When these tensions between Sales, Operations, and Finance are properly managed, they create a positive flywheel effect:
Sales pushes Operations to innovate and scale, improving efficiency.
Operations pushes Finance to invest in better systems and resources.
Finance pushes Sales to deliver consistent growth that justifies investments.
When managed correctly, this cycle drives sustainable growth, operational efficiency, and financial health. However, if a leader tries to “solve” any of these tensions by slowing sales, cutting investments, or forcing short-term gains, they disrupt the flywheel and cause lasting damage.
The Leadership Challenge: Managing, Not Solving
To be successful, leaders must understand that these tensions are not problems to be solved but dynamics to be managed. This requires maintaining a balance between competing priorities:
Sales needs to grow, driving revenue and market share.
Operations needs to scale, improving efficiency and meeting demand.
Finance needs to control costs, ensuring the company remains financially stable and profitable.
Rather than eliminating the tension, a leader’s job is to make sure each department can push the others forward without stalling progress. This means fostering collaboration, ensuring open communication, and recognizing that the friction between departments is a sign of growth, not failure.
Managing Tensions with Accountability and Confrontation
A leader’s ability to manage these tensions effectively comes down to their willingness to face the tension head-on. This requires embracing confrontation and accountability in management meetings, especially between Sales, Operations, and Finance.
Seek Productive Confrontation: Avoiding tension only makes things worse. Leaders must create environments where Sales, Operations, and Finance can openly address their competing priorities without resentment. These confrontations are not about finding fault—they’re about ensuring that each department pushes the others in a way that benefits the entire company. Leaders must facilitate tough conversations and ensure they happen consistently.
Hold Each Department Accountable: Each department should have clear goals and metrics that align with the company’s overall objectives. Sales should be held accountable for driving revenue, Operations for delivering efficiently, and Finance for managing resources wisely. The tension arises when one department’s goals create strain on the others. Leaders must hold each department accountable not only for their own targets but for how their actions impact the other departments.
Lead with Transparency: To manage these tensions well, leaders must ensure transparency between departments. Sales should understand the constraints Operations faces, and Operations should recognize the financial pressures Finance is under. Likewise, Finance should understand the growth goals Sales is driving. Clear communication helps prevent misalignment and allows the team to work through tension productively.
Conclusion: Leadership Through Tension
Ultimately, the difference between good and great leaders lies in how they handle tension. A good leader might try to reduce or avoid tension, thinking that smoother operations are the goal. But a great leader understands that tension, when properly managed, is the key to driving growth, efficiency, and profitability.
By facing into the tension between Sales, Operations, and Finance—seeking productive confrontation and holding each team accountable—leaders can ensure that these natural dynamics fuel long-term success rather than holding it back.
The key to sustained growth isn’t solving every challenge. It’s learning to manage the tensions that drive your business forward, creating a culture of accountability and open dialogue, and embracing the tough conversations that help your company thrive.
When to Solve, When to Manage: A Key Distinction for Effective Leaders
Introduction
As a business leader, it’s easy to assume that every challenge you face is a problem to be solved. But what if some of those challenges aren’t problems at all? What if they’re tensions that, rather than being eliminated, need to be managed? Misidentifying the two can derail your team’s performance and even stifle the growth of your entire business.
The key to sustainable success lies in recognizing the difference between problems and tensions. This article will explore how the natural, ongoing dynamics between Sales, Operations, and Finance serve as a perfect example of healthy tensions that drive business growth when properly managed—but cause issues when treated like problems to be solved.
Problems vs. Tensions: What’s the Difference?
Problems are finite. They have clear solutions, and once resolved, they’re gone. Think of a broken process or a supply chain issue—there’s a fix, and once you apply it, the problem ends.
Tensions, on the other hand, are ongoing. They arise from the competing priorities and responsibilities of different departments and will never go away. They don’t have a final solution because they aren’t a problem to fix—they are a dynamic to be balanced.
The trouble arises when leaders mistake tensions for problems and try to “solve” them, which often backfires.
The Sales-Operations Tension: A Natural Dynamic
In most businesses, Sales is laser-focused on driving revenue by closing deals and expanding the customer base. Operations, meanwhile, is tasked with delivering on those deals efficiently, ensuring quality and meeting deadlines.
This creates a natural tension. As Sales pushes to increase revenue, Operations feels the strain of fulfilling that demand with the resources available. This dynamic can often seem like a problem, and the instinct may be to slow down Sales in order to “solve” the issue by giving Operations room to breathe.
But this tension is not a problem that can be solved by throttling Sales—it’s an ongoing relationship between departments that needs to be managed.
Operations and Finance: The Investment Strain
As Sales creates more demand, Operations often needs additional resources—whether it’s more staff, better tools, or new systems to keep up with the increasing workload. This, in turn, puts pressure on Finance, which must balance the need for investments with fiscal responsibility.
Finance’s focus is to control costs, manage cash flow, and ensure a strong return on investment (ROI). But when Operations needs new capital to scale, it creates another tension—Finance is hesitant to spend more, while Operations needs investment to improve efficiency and keep up with Sales’ demand.
A leader might think they can solve this tension by cutting back on spending or delaying investments. But that’s not a solution; it’s merely pushing the tension aside. Over time, this will hurt both Operations’ efficiency and Sales’ ability to deliver on promises, resulting in broader performance issues.
Finance-Sales Tension: ROI and Growth
Finally, Finance puts pressure on Sales to deliver returns on past investments and justify future spending. Sales is tasked not only with generating revenue but also with proving that each deal contributes positively to the company’s financial health.
This creates another tension, as Sales pushes to meet its revenue targets, while Finance seeks assurances that the business is getting a strong ROI. Trying to solve this tension by, for example, demanding immediate results from Sales will push the team into short-term thinking, which can hurt long-term growth.
The Flywheel of Managed Tensions
When these tensions between Sales, Operations, and Finance are properly managed, they create a positive flywheel effect:
Sales pushes Operations to innovate and scale, improving efficiency.
Operations pushes Finance to invest in better systems and resources.
Finance pushes Sales to deliver consistent growth that justifies investments.
When managed correctly, this cycle drives sustainable growth, operational efficiency, and financial health. However, if a leader tries to “solve” any of these tensions by slowing sales, cutting investments, or forcing short-term gains, they disrupt the flywheel and cause lasting damage.
The Leadership Challenge: Managing, Not Solving
To be successful, leaders must understand that these tensions are not problems to be solved but dynamics to be managed. This requires maintaining a balance between competing priorities:
Sales needs to grow, driving revenue and market share.
Operations needs to scale, improving efficiency and meeting demand.
Finance needs to control costs, ensuring the company remains financially stable and profitable.
Rather than eliminating the tension, a leader’s job is to make sure each department can push the others forward without stalling progress. This means fostering collaboration, ensuring open communication, and recognizing that the friction between departments is a sign of growth, not failure.
Managing Tensions with Accountability and Confrontation
A leader’s ability to manage these tensions effectively comes down to their willingness to face the tension head-on. This requires embracing confrontation and accountability in management meetings, especially between Sales, Operations, and Finance.
Seek Productive Confrontation: Avoiding tension only makes things worse. Leaders must create environments where Sales, Operations, and Finance can openly address their competing priorities without resentment. These confrontations are not about finding fault—they’re about ensuring that each department pushes the others in a way that benefits the entire company. Leaders must facilitate tough conversations and ensure they happen consistently.
Hold Each Department Accountable: Each department should have clear goals and metrics that align with the company’s overall objectives. Sales should be held accountable for driving revenue, Operations for delivering efficiently, and Finance for managing resources wisely. The tension arises when one department’s goals create strain on the others. Leaders must hold each department accountable not only for their own targets but for how their actions impact the other departments.
Lead with Transparency: To manage these tensions well, leaders must ensure transparency between departments. Sales should understand the constraints Operations faces, and Operations should recognize the financial pressures Finance is under. Likewise, Finance should understand the growth goals Sales is driving. Clear communication helps prevent misalignment and allows the team to work through tension productively.
Conclusion: Leadership Through Tension
Ultimately, the difference between good and great leaders lies in how they handle tension. A good leader might try to reduce or avoid tension, thinking that smoother operations are the goal. But a great leader understands that tension, when properly managed, is the key to driving growth, efficiency, and profitability.
By facing into the tension between Sales, Operations, and Finance—seeking productive confrontation and holding each team accountable—leaders can ensure that these natural dynamics fuel long-term success rather than holding it back.
The key to sustained growth isn’t solving every challenge. It’s learning to manage the tensions that drive your business forward, creating a culture of accountability and open dialogue, and embracing the tough conversations that help your company thrive.
When to Solve, When to Manage: A Key Distinction for Effective Leaders
Introduction
As a business leader, it’s easy to assume that every challenge you face is a problem to be solved. But what if some of those challenges aren’t problems at all? What if they’re tensions that, rather than being eliminated, need to be managed? Misidentifying the two can derail your team’s performance and even stifle the growth of your entire business.
The key to sustainable success lies in recognizing the difference between problems and tensions. This article will explore how the natural, ongoing dynamics between Sales, Operations, and Finance serve as a perfect example of healthy tensions that drive business growth when properly managed—but cause issues when treated like problems to be solved.
Problems vs. Tensions: What’s the Difference?
Problems are finite. They have clear solutions, and once resolved, they’re gone. Think of a broken process or a supply chain issue—there’s a fix, and once you apply it, the problem ends.
Tensions, on the other hand, are ongoing. They arise from the competing priorities and responsibilities of different departments and will never go away. They don’t have a final solution because they aren’t a problem to fix—they are a dynamic to be balanced.
The trouble arises when leaders mistake tensions for problems and try to “solve” them, which often backfires.
The Sales-Operations Tension: A Natural Dynamic
In most businesses, Sales is laser-focused on driving revenue by closing deals and expanding the customer base. Operations, meanwhile, is tasked with delivering on those deals efficiently, ensuring quality and meeting deadlines.
This creates a natural tension. As Sales pushes to increase revenue, Operations feels the strain of fulfilling that demand with the resources available. This dynamic can often seem like a problem, and the instinct may be to slow down Sales in order to “solve” the issue by giving Operations room to breathe.
But this tension is not a problem that can be solved by throttling Sales—it’s an ongoing relationship between departments that needs to be managed.
Operations and Finance: The Investment Strain
As Sales creates more demand, Operations often needs additional resources—whether it’s more staff, better tools, or new systems to keep up with the increasing workload. This, in turn, puts pressure on Finance, which must balance the need for investments with fiscal responsibility.
Finance’s focus is to control costs, manage cash flow, and ensure a strong return on investment (ROI). But when Operations needs new capital to scale, it creates another tension—Finance is hesitant to spend more, while Operations needs investment to improve efficiency and keep up with Sales’ demand.
A leader might think they can solve this tension by cutting back on spending or delaying investments. But that’s not a solution; it’s merely pushing the tension aside. Over time, this will hurt both Operations’ efficiency and Sales’ ability to deliver on promises, resulting in broader performance issues.
Finance-Sales Tension: ROI and Growth
Finally, Finance puts pressure on Sales to deliver returns on past investments and justify future spending. Sales is tasked not only with generating revenue but also with proving that each deal contributes positively to the company’s financial health.
This creates another tension, as Sales pushes to meet its revenue targets, while Finance seeks assurances that the business is getting a strong ROI. Trying to solve this tension by, for example, demanding immediate results from Sales will push the team into short-term thinking, which can hurt long-term growth.
The Flywheel of Managed Tensions
When these tensions between Sales, Operations, and Finance are properly managed, they create a positive flywheel effect:
Sales pushes Operations to innovate and scale, improving efficiency.
Operations pushes Finance to invest in better systems and resources.
Finance pushes Sales to deliver consistent growth that justifies investments.
When managed correctly, this cycle drives sustainable growth, operational efficiency, and financial health. However, if a leader tries to “solve” any of these tensions by slowing sales, cutting investments, or forcing short-term gains, they disrupt the flywheel and cause lasting damage.
The Leadership Challenge: Managing, Not Solving
To be successful, leaders must understand that these tensions are not problems to be solved but dynamics to be managed. This requires maintaining a balance between competing priorities:
Sales needs to grow, driving revenue and market share.
Operations needs to scale, improving efficiency and meeting demand.
Finance needs to control costs, ensuring the company remains financially stable and profitable.
Rather than eliminating the tension, a leader’s job is to make sure each department can push the others forward without stalling progress. This means fostering collaboration, ensuring open communication, and recognizing that the friction between departments is a sign of growth, not failure.
Managing Tensions with Accountability and Confrontation
A leader’s ability to manage these tensions effectively comes down to their willingness to face the tension head-on. This requires embracing confrontation and accountability in management meetings, especially between Sales, Operations, and Finance.
Seek Productive Confrontation: Avoiding tension only makes things worse. Leaders must create environments where Sales, Operations, and Finance can openly address their competing priorities without resentment. These confrontations are not about finding fault—they’re about ensuring that each department pushes the others in a way that benefits the entire company. Leaders must facilitate tough conversations and ensure they happen consistently.
Hold Each Department Accountable: Each department should have clear goals and metrics that align with the company’s overall objectives. Sales should be held accountable for driving revenue, Operations for delivering efficiently, and Finance for managing resources wisely. The tension arises when one department’s goals create strain on the others. Leaders must hold each department accountable not only for their own targets but for how their actions impact the other departments.
Lead with Transparency: To manage these tensions well, leaders must ensure transparency between departments. Sales should understand the constraints Operations faces, and Operations should recognize the financial pressures Finance is under. Likewise, Finance should understand the growth goals Sales is driving. Clear communication helps prevent misalignment and allows the team to work through tension productively.
Conclusion: Leadership Through Tension
Ultimately, the difference between good and great leaders lies in how they handle tension. A good leader might try to reduce or avoid tension, thinking that smoother operations are the goal. But a great leader understands that tension, when properly managed, is the key to driving growth, efficiency, and profitability.
By facing into the tension between Sales, Operations, and Finance—seeking productive confrontation and holding each team accountable—leaders can ensure that these natural dynamics fuel long-term success rather than holding it back.
The key to sustained growth isn’t solving every challenge. It’s learning to manage the tensions that drive your business forward, creating a culture of accountability and open dialogue, and embracing the tough conversations that help your company thrive.
When to Solve, When to Manage: A Key Distinction for Effective Leaders
Introduction
As a business leader, it’s easy to assume that every challenge you face is a problem to be solved. But what if some of those challenges aren’t problems at all? What if they’re tensions that, rather than being eliminated, need to be managed? Misidentifying the two can derail your team’s performance and even stifle the growth of your entire business.
The key to sustainable success lies in recognizing the difference between problems and tensions. This article will explore how the natural, ongoing dynamics between Sales, Operations, and Finance serve as a perfect example of healthy tensions that drive business growth when properly managed—but cause issues when treated like problems to be solved.
Problems vs. Tensions: What’s the Difference?
Problems are finite. They have clear solutions, and once resolved, they’re gone. Think of a broken process or a supply chain issue—there’s a fix, and once you apply it, the problem ends.
Tensions, on the other hand, are ongoing. They arise from the competing priorities and responsibilities of different departments and will never go away. They don’t have a final solution because they aren’t a problem to fix—they are a dynamic to be balanced.
The trouble arises when leaders mistake tensions for problems and try to “solve” them, which often backfires.
The Sales-Operations Tension: A Natural Dynamic
In most businesses, Sales is laser-focused on driving revenue by closing deals and expanding the customer base. Operations, meanwhile, is tasked with delivering on those deals efficiently, ensuring quality and meeting deadlines.
This creates a natural tension. As Sales pushes to increase revenue, Operations feels the strain of fulfilling that demand with the resources available. This dynamic can often seem like a problem, and the instinct may be to slow down Sales in order to “solve” the issue by giving Operations room to breathe.
But this tension is not a problem that can be solved by throttling Sales—it’s an ongoing relationship between departments that needs to be managed.
Operations and Finance: The Investment Strain
As Sales creates more demand, Operations often needs additional resources—whether it’s more staff, better tools, or new systems to keep up with the increasing workload. This, in turn, puts pressure on Finance, which must balance the need for investments with fiscal responsibility.
Finance’s focus is to control costs, manage cash flow, and ensure a strong return on investment (ROI). But when Operations needs new capital to scale, it creates another tension—Finance is hesitant to spend more, while Operations needs investment to improve efficiency and keep up with Sales’ demand.
A leader might think they can solve this tension by cutting back on spending or delaying investments. But that’s not a solution; it’s merely pushing the tension aside. Over time, this will hurt both Operations’ efficiency and Sales’ ability to deliver on promises, resulting in broader performance issues.
Finance-Sales Tension: ROI and Growth
Finally, Finance puts pressure on Sales to deliver returns on past investments and justify future spending. Sales is tasked not only with generating revenue but also with proving that each deal contributes positively to the company’s financial health.
This creates another tension, as Sales pushes to meet its revenue targets, while Finance seeks assurances that the business is getting a strong ROI. Trying to solve this tension by, for example, demanding immediate results from Sales will push the team into short-term thinking, which can hurt long-term growth.
The Flywheel of Managed Tensions
When these tensions between Sales, Operations, and Finance are properly managed, they create a positive flywheel effect:
Sales pushes Operations to innovate and scale, improving efficiency.
Operations pushes Finance to invest in better systems and resources.
Finance pushes Sales to deliver consistent growth that justifies investments.
When managed correctly, this cycle drives sustainable growth, operational efficiency, and financial health. However, if a leader tries to “solve” any of these tensions by slowing sales, cutting investments, or forcing short-term gains, they disrupt the flywheel and cause lasting damage.
The Leadership Challenge: Managing, Not Solving
To be successful, leaders must understand that these tensions are not problems to be solved but dynamics to be managed. This requires maintaining a balance between competing priorities:
Sales needs to grow, driving revenue and market share.
Operations needs to scale, improving efficiency and meeting demand.
Finance needs to control costs, ensuring the company remains financially stable and profitable.
Rather than eliminating the tension, a leader’s job is to make sure each department can push the others forward without stalling progress. This means fostering collaboration, ensuring open communication, and recognizing that the friction between departments is a sign of growth, not failure.
Managing Tensions with Accountability and Confrontation
A leader’s ability to manage these tensions effectively comes down to their willingness to face the tension head-on. This requires embracing confrontation and accountability in management meetings, especially between Sales, Operations, and Finance.
Seek Productive Confrontation: Avoiding tension only makes things worse. Leaders must create environments where Sales, Operations, and Finance can openly address their competing priorities without resentment. These confrontations are not about finding fault—they’re about ensuring that each department pushes the others in a way that benefits the entire company. Leaders must facilitate tough conversations and ensure they happen consistently.
Hold Each Department Accountable: Each department should have clear goals and metrics that align with the company’s overall objectives. Sales should be held accountable for driving revenue, Operations for delivering efficiently, and Finance for managing resources wisely. The tension arises when one department’s goals create strain on the others. Leaders must hold each department accountable not only for their own targets but for how their actions impact the other departments.
Lead with Transparency: To manage these tensions well, leaders must ensure transparency between departments. Sales should understand the constraints Operations faces, and Operations should recognize the financial pressures Finance is under. Likewise, Finance should understand the growth goals Sales is driving. Clear communication helps prevent misalignment and allows the team to work through tension productively.
Conclusion: Leadership Through Tension
Ultimately, the difference between good and great leaders lies in how they handle tension. A good leader might try to reduce or avoid tension, thinking that smoother operations are the goal. But a great leader understands that tension, when properly managed, is the key to driving growth, efficiency, and profitability.
By facing into the tension between Sales, Operations, and Finance—seeking productive confrontation and holding each team accountable—leaders can ensure that these natural dynamics fuel long-term success rather than holding it back.
The key to sustained growth isn’t solving every challenge. It’s learning to manage the tensions that drive your business forward, creating a culture of accountability and open dialogue, and embracing the tough conversations that help your company thrive.