Is your company growing? If so, then it may be time to start thinking about hiring a Chief Operating Officer (COO). If you are looking for someone to oversees the daily operations of your company and someone who can motivate your team, then read below on why you should hire a COO, and more importantly, when you should.
As reported by Forbes on June 18th, 2019 by Kamyar Shah.
Why You Should Hire A Chief Operating Officer (And When To Do It)
As your company grows, one of the biggest challenges is deciding when to hire for certain roles, particularly in management. Small teams don’t need a full C-suite, but large corporations rely on them. Further complicating matters, even large organizations may have unique sets of C-level executives. This leaves a lot of owners asking themselves, “Why should I hire a COO, and when is the right time to do so?”
What Exactly Is A Chief Operating Officer?
The chief operating officer is one of the oldest positions in the C-suite. This executive role oversees the daily operations of the organization. In many companies, the COO is the second-in-command to the chief executive officer.
In most cases, the exact responsibilities of the chief operating officer are determined by the needs of the organization and his or her relationship with the CEO. A COO may be tasked with optimizing operations, distributing limited resources, ensuring the success of major projects and/or acting as a partner for the chief executive.
How Does Hiring A COO Bring Value To Your Team?
Having someone in this role can add value to your team in a few key ways:
- Your CEO can delegate operations.On small teams, the CEO usually handles all the company’s executive functions, including overseeing daily operations. As you grow, this may become unsustainable or at least non-optimal. Hiring a COO means the chief executive officer can spend more time on strategy and other essential responsibilities.
- The COO can improve communication. Many growing teams experience problems with communication. As you get larger, it is harder to keep everyone on the same page. A COO can focus on this issue, working to break down information silos and improve communication systems throughout the organization.
- Your operations should be better managed.Having someone dedicated to operations is an opportunity for improvement. In many cases, when a CEO is overseeing the operations, he or she can do little more than managing them. A chief operating officer can not only run your daily operations but also hone them to become more efficient.
- The COO can execute your strategy.A chief operating officer can be charged with making your big ideas happen. One of the most common responsibilities for COOs is the oversight of critical projects.
- He or she can be heir-apparent.Succession after a CEO leaves an organization can be a troubling time. Having a COO who is the heir apparent to the current chief executive officer is one way to ensure a smooth transition period.
Hiring a chief operating officer can offer these benefits and more. For many organizations, it is one of the most important and valuable executive positions on the team. Of course, it isn’t always necessary, and finding the right COO can take time. Consequently, knowing the right time to hire is as important as knowing why you want to hire.
What Are the Signs You May Need A COO?
The right time to hire a chief operating officer is different for every organization. Some have complex daily operations and need one early in their growth. Other companies may never need a COO.
Perhaps it has become difficult for the CEO to manage their team, or they’re spending too much time on day-to-day operations and not enough on turning creative ideas into action. Each of these signs is a warning of future troubles and a strong reason to hire a chief operating officer. For example, if the chief executive officer is overwhelmed, he or she may not be able to live up to the expectations of investors, customers, and other important stakeholders. In time, this could lead to losing capital, business, and other resources.
Similarly, as many owners and executives know, being at the top can be an isolating experience. In many cases, no one else on the team has the same top-down perspective. An operation chief can act as a peer who shares the chief executive’s aerial view of the company. Having that partner is essential for brainstorming and refining strategic plans.
Overseeing many different people in an organization is challenging. Having someone to offload some direct reports can help streamline the organization chart for the company. It reduces the number of voices that are reaching the CEO.
Sometimes everyone needs a cheerleader and supporter. During periods of slower growth, new initiatives, or other times when investors need to trust the executive team, the CEO may need someone to back him or her up. A chief operating officer can be that second who adds an additional voice to the conversation in support of the chief executive officer.
Many startup organizations begin with very creative minds. This is great for innovation but not so useful for execution. In many cases, having a practical-minded chief operating officer can help ensure that your big ideas are turned into reality.
Is Your Team Ready for A COO?
Knowing whether it is the right time to hire a COO, or any other position can be a real challenge for any team. If you are experiencing some of the above signs, it may be time to start your search.
Fortunately, you don’t need to dive in headfirst. Many organizations experience success with fractional or temporary chief operating officers. This arrangement offers a chance to see how a COO would fit into your team without committing to hiring someone full time. It is a great litmus test to determine if you should hire a COO.
Additional COO Resources
When is it Time to Hire a COO?
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