How To Forge a Strong CFO-COO Partnership That Drives Organizational Success

The modern finance leader’s role is evolving. No longer confined to spreadsheets and budgeting, CFOs are increasingly stepping into other areas of the business, partnering with operational leaders to drive success.

But to get the most out of those broader roles, CFOs need to forge strong relationships throughout the business, including a powerful relationship with the COO.

So, what does an effective CFO-COO partnership look like in practice?

On a recent episode of The CFO Show, Sandra Clarke, former Executive Vice President and COO of Blue Shield of California, shared invaluable insights on how finance and operations leaders can work together to build stronger, more agile organizations.

Sandra, who transitioned from CFO to COO at Blue Shield, brings a unique perspective on the synergies—and tensions—between these two critical roles. She also knows first-hand what’s required to make that relationship thrive.

Do you want insights into how CFOs can become effective strategic partners to their COO counterparts? Keep reading to learn from Sandra's story.

From CFO To COO

Sandra’s journey from CFO to COO wasn’t conventional—her boss simply called and told her she was taking on the role. But in retrospect, it made sense. Throughout her finance career, she showed a keen interest in the operational side of the business.

“I was always trying to understand the things behind the numbers so that they made more sense. What drove the business? How did it work?” she explains. This curiosity set her apart as a finance leader while also making her a natural fit for the operational side of the business.

Sandra's journey highlights an important lesson for all finance professionals. Those who take the time to truly understand the mechanics of the business—its challenges, inefficiencies, and strategic goals—position themselves for broader leadership opportunities.

Aligning Finance with Operations

But what can Sandra tell us about building a strong relationship between the office of finance and the operations side of the business? That relationship, she says, should be built on a mutual understanding of business fundamentals.

“A good CFO partners with the COO. The two of them should be very closely aligned,” she says. “And I had always operated that way with the COOs at Blue Shield. So that also gave me familiarity with the organization.”

In other words: successful CFOs don’t just report financial results. They translate them into actionable insights that help drive operational excellence.

“I think it's really important that finance people do not just look at a bunch of numbers and say, ‘here, go make this change’ or ‘why can't you just grow revenue 10%?’” Sandra says. “There's a whole lot of stuff underneath that that you need to understand.”

How Finance Can Provide More Value To Operations

While not every CFO needs to take Sandra's career path, they can all benefit from understanding the operations side of the business. Through this understanding, CFOs and their teams can begin to provide more value.

“Finance offers a lot of value when they know the business, and they can come to you with patterns they see in the numbers that identify potential issues with an operational root cause that I need to solve,” she says.

This ability to bridge the gap between financial data and operational decision-making is also something that sets strategic CFOs apart.

Instead of simply reporting on past performance, finance leaders should aim to provide forward-looking insights that help operations teams optimize processes and allocate resources more effectively.

Managing the Natural Tensions Between Finance and Operations

Of course, even the strongest partnerships have moments of friction. Sandra acknowledges that one of the biggest sources of tension between CFOs and COOs is balancing financial constraints with operational needs.

“There’s always a tension between what we need to achieve financially versus what the business feels it can actually execute,” she says. “Or vice versa—what the business feels it needs from a resource perspective to execute, and finance saying the numbers don’t add up.”

The key to navigating this tension? Trust and communication.

Sandra stresses the importance of open, ongoing dialogue between Finance and Operations, in which both sides respect each other’s expertise and work together toward the best business outcome.

The Role of Finance in Crisis Management

So, when you put all of these pieces together, what does an effective CFO-COO partnership truly look like?

Sandra offers an example. One of her best experiences of effective CFO-COO partnership at Blue Shield of California came during the COVID-19 pandemic.

With so many members facing financial hardship, Sandra and her CEO worked closely with Finance to design a program that would support members struggling to pay their health insurance premiums.

“It took a lot of work together,” she recalls. “We had to have a financial program in place, an operational program in place, and the appropriate regulatory approvals. And we did it quickly and fairly seamlessly.”

This kind of rapid, strategic decision-making is only possible when finance and operations work in lockstep. It also highlights the critical role finance leaders can play in shaping not just business outcomes, but societal impact too.

5 Best Practices for a Strong CFO-COO Partnership

Are you a finance leader looking to build a stronger partnership with your operational counterpart? If so, Sandra offers the following pieces of advice:

1. Know the Business

Finance leaders need to go beyond the numbers and understand the operational mechanics of their company.

This is something that set Sandra herself apart before she transitioned from CFO to COO. “If you don’t understand the business, I think it's hard to have some of those dialogues and be a thought partner [to the COO],” she says.

2. Be Curious

The best finance professionals ask the right questions and seek to understand the "why" behind financial trends.

“There's a whole lot of stuff underneath that you need to understand. And so, I think really successful business partners—which is what finance people should be—ask those questions. They naturally have that curiosity,” Sandra says.

3. Communicate Regularly

Communication is key in any good relationship. And when it comes to establishing an effective CFO-COO partnership, drive-by conversations and informal check-ins can be just as valuable as more formal meetings.

“I love the perspective you get on the business from Finance, because you're sitting from a slightly different seat. And so, you just see things a little differently,” Sandra adds. “When you are able to do that and have a real two-way conversation, you can both uncover things that maybe you wouldn't have identified otherwise.”

4. Focus on What’s Best for the Business

The best CFO-COO relationships prioritize organizational success over individual department wins.

“If you have a situation where you're more worried about how you or your team looks versus what's going to be the best outcome for the business, that's not going to be a healthy relationship,” Sandra says.

5. Embrace Healthy Tension

Finally, Finance and Operations will naturally have competing priorities at times, but that’s okay. Productive discussions borne from healthy conflict can often lead to better decisions.

“You've got competing demands or expectations around what you're going to be able to deliver financially and what it might take to actually do that,” Sandra says, a normal part of any CFO-COO relationship.

Final Thoughts: Finance as a Strategic Business Partner

As finance leaders take on increasingly strategic roles, the CFO-COO relationship has never been more critical.

And Sandra’s experience underscores that finance is not just about managing numbers. It’s about driving business performance, solving operational challenges and contributing to long-term strategic success.

Whether you’re a CFO, a finance director or an aspiring finance leader, now is the time to lean into operations, build trust with your COO and become a true strategic partner in your organization.

Because at the end of the day, the strongest CFOs aren’t just financial experts—they’re business leaders.

Want more insights? Subscribe to The CFO Show newsletter for more best practices on how to drive your business forward.