The CEO owns the story. The CFO owns the facts.
Before taking a CEO job, reporting lines are simple. You have a boss. You have a team. Everyone knows who answers to whom.
New CEOs are often surprised to find the CEO role is radically different. And nowhere is this more clear than the relationship with the CFO.
In a private equity-backed company, the CFO is as much a partner as a direct report. It is their job to talk with the sponsor and the board between meetings. They will share numbers, answer hard questions, and give their view of performance. Often before you know the call even happened.
This level of access is disorienting to a new PE-backed CEO. It can feel threatening. And most CEOs handle that emotional reaction poorly.
The failure comes from responding at one of two extremes. They either ignore the CFO and focus on running the business. Or they try to control the CFO, and shape what the CFO tells the board.
Both erode confidence fast. If the CFO is ignored, they build their own narrative, which may or may not match yours. But the other extreme may be worse. Boards can tell when the numbers are being massaged to fit a story. Nothing destroys trust faster than manipulation.
There's a better way.
First, clarify the roles. The CEO owns the story. What came before, what comes next, and what the priorities should be. The CFO owns the facts. What is true today.
Second, stay aligned. It is the CEO's job to keep the story and the facts in harmony. When the two disagree, the facts still get shared, and the disconnect gets named clearly.
This approach benefits the CEO the most. An independent CFO keeps you speaking from a position of truth. That is harder than it sounds as a CEO, where you are constantly selling and everyone is trying to change your mind. It serves the board as well, keeping them grounded in both what is true today and what could be true tomorrow.
The CFO's role shifts. Sometimes they are your direct report. And sometimes, like with the board, they are your partner.
Align with them constantly, and leave them free to report the facts. Then when they agree with you, the board will believe it.