In the journey of every organization, there comes a time when discussions arise about the possibility of hiring a second-in-command or a Chief Operations Officer (COO). However, the role of a COO is often shrouded in ambiguity and misconceptions, making the process of finding the right candidate a challenging task.
While we have previously explored the topic of how to hire a COO, there is another aspect that often proves more problematic for CEOs – clearly defining the role of a COO and understanding its inherent value.
Before delving into the specifics of what qualities and skills to look for in a COO, it is crucial to question the necessity of such a hire and the value they can bring to the organization. Unfortunately, these vital inquiries often remain unanswered, leading to confusion and uncertainty in the hiring process.
In this article, we aim to address this predicament by shedding light on the significance of the COO role and its value within an organization. By understanding the specific contributions a COO can make, CEOs can better assess whether this position is truly necessary for their organization’s growth and success.
By clarifying the purpose and benefits of having a COO, organizations can make informed decisions and navigate the hiring process with greater clarity and purpose. We will explore the key responsibilities and strategic advantages a COO brings to the table, debunking misconceptions along the way.
Join us as we unravel the enigma surrounding the COO role, providing CEOs and organizations with valuable insights to help them make well-informed decisions when considering the addition of a Chief Operations Officer to their leadership team.
Experts agree that the role of the COO is one of the most misunderstood and least defined in the C-suite. It can be challenging to extrapolate specific trends from the reasons that companies and CEOs give for bringing on operations chiefs. This, in turn, makes the question of what a COO is expected to do a very difficult one to answer.
Here, we discuss this challenge and put forth the proposition that, perhaps, instead of screening and interviewing a COO on the basis of a set category of requirements, it may be more beneficial to consider a list of end results you want to achieve and then working back from there.
Answering this question is often part of the problem. No one can tell with any degree of certainty exactly what a COO should be doing in an organization. Part of this is due to the limited understanding we have of the role, with Accenture describing it as “perhaps one of the least understood roles in business today.”
While this sounds incongruous at first pass (considering that companies and their officers have been subjects of unrelenting study for decades), it does make sense because:
The COO often acts as a trusted second to the CEO, the yin to their yang.
In this position, an operations chief may carry out various responsibilities, depending on what is needed.
However, whatever those job descriptions may look like, their overall responsibility is often to supplement the skills, abilities, duties, or goals of the CEO.
In other words, the professional CEO and COO relationship that the head of an organization wants can be pivotal in defining what the chief operating officer role ultimately looks like at a company.
The job of a CEO can often be a tough one, and while in this role, there is often so much to do. While a lot of those tasks can be handled by other members of the C-suite, organizations can sometimes find themselves needing an enterprise-wide operational view in dealing with these problems.
Since the CEO will typically have a lot on their plate, our executive recruiters often see companies choose to bring on a COO at this point to provide that extra operational guidance. This frees up the CEO to pursue strategic tasks such as leading the company into the future and other public-facing roles. However, this is just one of the ways that chief operating officers typically add value to organizations.
According to a Harvard Business Review article, there are at least seven other ways in which COOs can be brought on to add value, including by (but not limited to):
For Linda Kozlowski, former COO at Etsy, the value that a COO brings is in business operations, particularly “how you operate your business, think about strategy, and move the business forward in growth.” Although she admits that the “role is custom to every company and requires deep self-awareness from the CEO and founder to outline the specific skills and qualities they need in a partner.”
Therefore, at the core of it, the value that a COO brings largely depends on how clear the vision for their intervention is and how this is communicated in prospecting for and finding the right candidate.
As explained earlier, the CEO and COO will typically maintain a close working relationship. Therefore, one of the most important things to get right during the recruitment process is to ensure that this is a hire both individuals are comfortable about.
There needs to be a healthy degree of trust and chemistry between CEO and COO. There should be a(n):
The chief operating officer should also be versatile enough to adequately hold the ship when the CEO is not in office. As Kozlowski emphasizes, “the most successful COOs are Jacks – or Jills of all trades.” In addition, the COO “should exude similar leadership traits to the ones you possess so the team feels confident relying on them – and the business doesn’t skip a beat.”
One red flag to look out for in this relationship is a potential tussle for relevance or power with the CEO. The COO absolutely needs to be someone who recognizes that “their job is to run the plays, not call them.” The CEO also should be willing to share the spotlight so they and the COO can function as a truly effective team.
Great COOs: How to Hire a Highly Functional & Effective COO
With a clearer idea of the COO’s role in mind, identifying what organizations want or need in their chief of operations becomes easier. Kozlowski advises conducting a bit of self-assessment on the part of the CEO in fleshing out this part.
Here are the questions to ask and answer to determine what would make a great COO for your company.
A great COO will have the most impact when they are not trampling on the same space as the CEO. Instead, knowing what tasks you prefer to be doing as CEO allows you to identify what tasks your COO will be doing instead, giving you both space to work.
Just as you have identified what you prefer to do, also identify what you prefer not to. Often, we procrastinate tasks for various reasons including lack of time. But while you truly may not have enough time for those tasks, the problem may be more a matter of interest or even a skills gap that you’re unwilling to admit. If that’s the case, then these are likely the tasks you want your COO to be skilled in.
Amongst those things you delay, there are a few you wish you did better. A great COO can come in as a mentor or instructor and guide you in these over the long term while also providing those skills right now.
It also makes sense to seek input from your executive team and board of directors on these questions. Having that broad insight will help you create an accurate picture that you can then draw on in identifying what the perfect COO will look like for you.
A chief administrative officer is responsible for day-to-day operations while a chief operating officer is an executive position responsible for improving efficiency. Specifically:
Carefully review the tasks typically assigned to a CAO versus a COO to determine which position is most important to your company. You may need to hire a chief operating officer and a chief administrative officer, but understanding the difference between the CAO vs. the COO roles will help you prioritize the positions and focus on the pain points of your business.
Prospecting for a COO is never an easy one, and it’s even harder when you’ve never had one. But with a clear idea of what value you expect a COO to bring to yourself as a CEO and your organization as a whole, you will be in a better position to make a hire that not only helps your company grow but that also helps you become a better leader.
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