Generally speaking, leadership in large enterprises is broad-based. The CEO will set direction, but COOs, divisional heads, chief strategy officers, and other senior executives all shape outcomes. Yet, in unique moments of strategic importance, such as a major acquisition designed to shift the strategic direction of a company, a different dynamic applies.
In these critical moments, the decisive dynamic is between three actors: CEO, CFO, and Board. Together, they form what can be thought of as a triumvirate. I don’t use this term because these executives somehow ‘outrank’ everyone else in the leadership team. Instead, when it comes to these high-stakes decisions, the balance of ambition (CEO), vigilance (CFO), and oversight (Board) can determine whether the organization makes disciplined choices and avoids high-cost, reputation-destroying disasters.
We can find parallels in history. In the Roman Republic, Caesar, Pompey, and Crassus concentrated power in a three-way alliance. It worked for a time but collapsed when personal ambition intruded. In corporate life, the risks are different, but the principle is arguably the same. Strong governance in high-stakes times depends on equilibrium.
Few cases illustrate this point better than Hewlett-Packard’s ill-fated acquisition of Autonomy in 2011. It is a well-trodden example but still resonates as a case example of a triumvirate where the dynamic had gone awry.
At the time, HP was pursuing a transformation of its business model. The $11bn purchase of Autonomy, a UK software company, was pitched as a way to shift the strategic direction of HP from a producer of hardware to a software and services supplier. It was not a large ‘bolt-on’ acquisition, but a high-stakes move on the company’s long-term strategy.
According to court documents reported by CFO.com at the time, HP’s then-CFO Cathie Lesjak “vehemently opposed” the deal, warning it was not in the best interests of the company. Nonetheless, CEO Léo Apotheker pressed ahead with the deal, bringing the proposal to the Board, which approved it. Independent chairman Raymond Lane is also reported to have harbored doubts about the deal’s valuation.
The outcome is well known. Léo Apotheker was ousted before the acquisition closed. Meg Whitman, his successor, was therefore compelled to complete a deal that she did not initiate. Less than a year later, HP announced an $8.8bn write-down. The strategic transformation was derailed, and the company was left with years of litigation and reputational damage.
For CFOs, the lesson is clear. Even when the risks are clear and voiced, you need to get the dynamics right. If the critical triumvirate is misaligned – with a CEO who is enthused about the deal, a CFO who is doubtful, and a Board that is disengaged – the guardrails can fail. In this case, the consequences were serious.
“Speaking plainly when something doesn’t add up; framing objections as a desire to make better decisions, not resistance for its own sake.”
In such moments, the CFO’s contribution is not caution for its own sake, but what we might call ‘disciplined challenge’. That means:
This role is not ‘oppositional’ for the sake of it. When done well, it supports trust and long-term value by protecting against blind spots.
To ensure this trio functions effectively under pressure, CFOs can take practical steps:
CFOs cannot rely on structure alone.
For CFOs, these high-stakes moments define both careers and companies. In ordinary times, leadership may be broad and collective. But in extraordinary times, the dynamic between CEO, CFO, and Board is critical.
CFOs cannot rely on structure alone. Of course, you do need structural clarity on who is responsible for what. But, equally, this is also about ‘courage’ and the willingness to stand up to someone. When this three-way dynamic works, CFOs can both support their CEO but also challenge. When it fractures, as HP’s experience shows, the costs can run into billions.
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