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Should the CFO Know?

Posted by on in Silver Lining Telecom
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We recently became aware (via reliable sources) that a company with which we had not previously had contact was paying way too much for their telecom services with their primary carrier.  The information we got was detailed and accurate. When I say way too much, I mean literally 2 or 3 times more than current market rates for key items. 

This means that, conservatively, they could quickly reduce spending by at least 25% per year by renegotiating their agreement.  Their agreement ends in less than 12 months.

We reached out to the Chief Administrative Officer who is responsible for IT/Telecom to offer our services.  The CAO responded by having a lower level person (Director) contact us.  We assured the Director that this situation was not uncommon, not due to any personal deficiency on their part and offered a no-cost detailed benchmarking analysis to document the potential savings.  The Director was somewhat defensive and did not want to pursue the discussion.  We responded back to the CAO to thank them for their attention and let them know how we could help them to reduce costs.   We’ve received no further response.

So, we’re faced with the choice of simply leaving things alone – knowing with 100% certainty that we could help this company to significantly reduce spending and increase net profitability – or, escalating to another C-Level Exec such as the CFO.  We believe the CFO would be interested since we work on a contingency basis i.e.  there’s no risk and a guaranteed first year ROI of at least 200%.  However, we’d clearly be stirring up a potentially difficult internal political situation by escalating directly to the CFO.  Should the CFO know?  What would you do?

 

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