CEO AND CFO – The Most Dynamic Duo In Business

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Recently below picture caused quite the debate on LinkedIn.

Here are some of the reactions… 

“I believe the true CFO has a more expanded scope. A couple of things...CFO is a General Manager role and has a huge impact on performance management, influencing culture and improving decision making in every aspect of the business. Invariably every department ultimately impacts the top, mid or bottom line and as such is within the remit of the modern effective CFO.”

“I think that CFO has much more to his role than just "Preparation". CFO is a guardian of the temple. He supports the strategic projects led by CEO, but his key functions are 1) guarantee transparency and reliability of financial result (Enron case) 2) alert and push for difficult decisions to be taken when the financial performance is not making sense (WeWork case) 3) ensure the operation is risk free and compliant. Relentlessly work on minimizing risks and supporting business flow. (Theranos case)”

“I worked for a company where this divide was true. That’s why I left as there was no room to grow. Where I am now the boundaries are blurred with each person working to their strengths but supporting the other on "weaknesses".”

“Couldn’t agree less on this comparison. My experience is that the CEO more often takes lead on sales and marketing while the CFO influences the financial side of it. However, that to me means taking lead and own the steering of the company based on financial decisions and not seldom actually steer the CEO and other sales directed people in the management team as well as the board. In my mind a successful management team will work together and accelerate and brake when necessary. The responsibility lies with both the CEO and CFO doing that successfully.”

”If CFOs want to be more than what this post outlined then they need to be more than just accountants. The problem I see is some of them think they are doing the company a great service by holding the 'bottom line' but completely missed the strategic approach for future growth. Those CFOs should just do exactly what's in this post.”

”Sounds like being 109 years old”

“I couldn't disagree more. This post somewhat demeans the importance of a CFO. We are influencers that make it possible for CEOs and boards to make decisions. We prepare forecasts that set the stage for budgeting. We mold cultures, especially those in small orgs where CFOs own HR responsibilities. CFOs are the engines that drive companies. We are the meat and potatoes, the advisors, the ones with grit and grind. And don't you ever forget it! ??”

“This illustration is missing so much. The CFO should be counsel and advisor to the CEO. Additionally, the CFO should be a significant voice in setting business strategy and driving operations. This construct is too limiting”

“There is more to the role of CFO that is being left out here. For example, securing bank and investor financing, government grants, identifying profit centers/loss centers, identifying market growth opportunities, M&A opportunities, etc. The CFO's role has greatly expanded over the past few decades.”

“This is a relationship between a strong CEO and a weak CFO. If you are a true CFO you should aspire to be much more than support.”

Why did a single picture cause so many stark reactions (there were also many positive ones BTW)? Here are some of my thoughts. 

• Both the CEO and CFO role are some very heavy roles in the company and limiting them to six main responsibilities means that too much is left out
• The two (should) work in a very close relationship and drawing a solid line between them is not a fair reflection of reality
• The wording of the CFOs responsibilities itself caused an uproar citing as many did not see CFOs being “supporting” or “preparing” anything but rather being co-drivers or strategic partners
• Others simply reflected that the description of the CFO role seemed heavily outdated
• Most just felt that the role is so much more than was pictured 

There is no doubt that the CFO role holds immense potential to make a difference in the company. The relationship between the CEO and CFO therefore is also a key driver of the impact that the CFO can have. The debate which was viewed by 250,000 people in the past three months certainly gave cause to reflection. I have tried to share these reflections in this article, and I hope it can shed new light on the relationship between the CEO and CFO. 

The most dynamic duo in business 

The duo of CEO and CFO is a very special one. Why? Because they are often the two only ones in the C-suite that have a full overview of what goes on in the company. This puts the pairing in a different position than say pairing the CEO and CCO or CEO and COO. In that way, the CFO has an influence on everything that the CEO does. 

The best way for the CFO to maximize this opportunity is to see the CEO as a customer. The CFO should ask herself “how can I help my CEO be a success”. Using that approach we can redefine the much-debated picture with a series of questions. 

This easily forms the most critical priorities of the company and while they will decide together, they will not do all the work together. Some fall naturally to one or the other and of course other C-suite members. Jointly deciding and dealing with these priorities easily makes the CEO/CFO pairing the most dynamic duo in business with the success or failure of their company in hand. 

There is no line between the CEO and CFO 

Ultimately, in most companies, the CEO can hire and fire the CFO. The CEO can also turn down suggestions from the CFO while the other way around is harder. So if it comes down to a power struggle the CEO most often wins. However, in reality, there should be no line (not even a dotted one) between the CEO and CFO. All material decisions should be made jointly. Otherwise, the pairing will not work, and a lot of value is lost in the company. 

How do you see the potential for the CFO to succeed in a company? How do you think the relationship between the CEO and CFO should work? And do you agree that these two roles are the most dynamic duo in business? The CFO role has certainly changed a lot in the past twenty years and it is critical that she manages to grab the opportunity to drive value creation in the company in a close partnership with the CEO!

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Anders Liu-Lindberg is the co-founder, COO (Chief Operating Officer), and CMO (Chief Marketing Officer) at the Business Partnering Institute and owner of the largest group dedicated to Finance Business Partnering on LinkedIn with more than 9,000 members. I have ten years of experience as a business partner at the global transport and logistics company Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a long-time Finance Blogger on LinkedIn with 50.000+ followers.