There is no doubt that the role of Chief Operating Officers (COOs) is demanding and unique. It may often seem severely undervalued, too, considering how there aren’t many publications or magazines dedicated to COOs. However, many corporations – big and small – are actively announcing new positions open for COOs.

Microsoft, KPMG, Apple, Rolls Royce, Nissan, and Allstate are prime examples of large organizations looking for new COOs – hence showcasing the increasing need for the role. This shows that COOs are not confined to specific industries or sectors, and the very existence of this role can vary from one organization to another.

Understanding what makes a great COO is akin to discerning what makes a great candidate for U.S. vice president – it is largely dependent on the unique dynamics between the COO and the CEO. This article explores the top challenges faced by COOs and offers strategies to effectively manage them.

The Kinds of COOs – How Complexities Vary

Before we dive into the top challenges for COOs, it is important to understand the different types of COOs and the challenges they face. The diversity in COO roles arises from the distinct motives behind creating the position in the first place. Here are seven fundamental reasons why companies hire COOs, each yielding different roles and the challenges they face:

1. The Executor

COOs in this category primarily focus on executing strategies crafted by the top management team. They recognize the intricacies of the CEO’s role, especially in large global enterprises. As such, they take charge of day-to-day operations, allowing the CEO to concentrate on long-term strategic planning.

Challenges:

• Operational Excellence: Executing strategies flawlessly demands a keen eye for operational processes for efficiency and effectiveness. COOs in this role must constantly seek ways to streamline processes and enhance productivity.
• Managing Complexity: Global enterprises often entail complex operations with numerous moving parts. COOs must excel in managing this complexity and ensuring all facets of the business run smoothly.
• Balancing Short-Term and Long-Term: Striking the right balance between short-term operational needs and long-term strategic goals is a perpetual challenge. COOs need to maintain a strategic perspective while dealing with daily demands.

2. The Change Agent

In this role, COOs are appointed to lead critical strategic initiatives such as turnarounds, major organizational overhauls, or rapid expansions. They wield unquestioned authority and direct their efforts toward overcoming specific strategic challenges.

Challenges:

• Navigating Resistance to Change: Leading transformative efforts often encounters resistance from employees who may be wary of change. COOs must excel in change management and communication to overcome this resistance.
• Rapid Decision-Making: When facing urgent strategic imperatives, COOs must make quick, well-informed decisions. The pressure to act swiftly can be intense.
• Ensuring Sustainable Change: Successful change agents must not only initiate transformations but also ensure their sustainability. Maintaining the momentum of change after the initial push is challenging.

3. The Mentor

COOs assume the role of mentors when they are brought in to guide a young or inexperienced CEO, often in a growing entrepreneurial venture. They offer industry wisdom, rich networks, and leadership mentorship to both the CEO and the burgeoning business.

Challenges:

• Balancing Mentorship and Operations: Mentor COOs need to strike a balance between mentoring the CEO and fulfilling operational duties. Allocating time effectively is essential.
• Adapting to CEO’s Learning Pace: The mentor must adapt their guidance to the CEO’s learning pace and style, ensuring that advice is well-received and actionable.
• Maintaining Industry Relevance: Staying up-to-date with industry trends and networking effectively to bring value to the CEO and the business is an ongoing challenge.

4. The Other Half

COOs in this scenario complement the CEO’s skills, style, or knowledge. They often function as a balanced leadership team, leveraging their unique strengths to drive the organization forward.

Challenges:

• Effective Collaboration: Ensuring seamless collaboration with the CEO is pivotal. Both parties must respect each other’s contributions and avoid conflicts or redundancy.
• Unified Decision-Making: COOs working as the “other half” should ensure that decisions are aligned and reflect a cohesive leadership approach and do not adopt a “tribal knowledge” approach.
• Balancing Responsibilities: Dividing responsibilities effectively to maximize the strengths of each leader while covering all necessary areas can be challenging.

5. The Partner

Some CEOs thrive when working in tandem with a partner, resulting in a “two in a box” leadership model emphasizing shared leadership and collaboration.

Challenges:

• Shared Decision-Making: CEOs and partner COOs must navigate shared decision-making, ensuring that both voices are heard and decisions are mutually beneficial.
• Defining Clear Roles: Clearly defining roles and responsibilities within the shared leadership structure is crucial to prevent conflicts and overlaps.
• Seamless Coordination: Effective communication and coordination between the CEO and partner COO are essential to avoid confusion and ensure a united front.

6. The Heir Apparent

Many companies use the COO position to groom or test a CEO-elect. This role offers a comprehensive view of the company, preparing the successor for the top leadership position.

Challenges:

• Proving Leadership Potential: COOs in this role must continually demonstrate their leadership capabilities and readiness to step into the CEO position.
• Balancing Development and Operations: While grooming a successor, COOs need to balance their development efforts with their operational responsibilities.
• Maintaining Engagement: Keeping the CEO-elect engaged and motivated throughout their development journey is essential for a successful transition.

7. The MVP

Occasionally, organizations offer the COO position as a promotion to retain a highly valuable executive, preventing them from being lured away by competitors.

Challenges:

• Retaining & Onboarding Top Talent: The challenge lies in ensuring that the valuable executive remains engaged and motivated within the organization, despite not having a clear path to the CEO role.
• Maximizing Contribution: COOs in this role need to maximize their impact on the organization, leveraging their expertise and influence to benefit the company.
• Managing Expectations: Both the executive and the organization must manage expectations regarding future career advancement and opportunities.

Elusive Lessons

The varied roles of COOs make scientific investigation challenging. While studies suggest that firms with a CEO-COO structure may underperform their peers, the implications are not clear-cut. Is the COO part of the problem or part of the solution? The contextual nature of the COO role makes it difficult to draw definitive conclusions.

The phenomenon of the “vanishing COO” is also notable. After a COO departs, their duties are often distributed among top managers to ensure there are no major disruptions. However, the role may re-emerge in the future as events like the pandemic disruptions occur.

Moreover, the lack of standardized attributes for a “great COO” complicates candidate selection. The COO’s success primarily hinges on the level of trust between them and the CEO, making trust-building crucial.

Underpinnings of Success

Despite the variability of COO roles, certain factors consistently contribute to success:

What The COO Owes The CEO:

• True Respect: COOs must wholeheartedly believe in the CEO’s strategic leadership to avoid causing disruption.
• An Ego in Check: COOs should balance self-confidence with humility and adaptability.
• An Eye on Execution: Regardless of their role, COOs should maintain an execution mindset and a bias toward action.
• Coaching and Coordination Skills: COOs must excel in directing and coaching others across the organization.

What The CEO Owes The COO:

• Communication: CEOs must communicate their vision clearly and directly to enable effective execution.
• Clear Decision Rights: Boundaries between CEO and COO responsibilities should be explicit and agreed upon early in the relationship.
• A Lock on the Back Door: CEOs must discourage direct reports from seeking backdoor access while ensuring that the COO’s position is not undermined.
• A Shared Spotlight: CEOs should share the spotlight when appropriate, fostering an environment where the COO’s contributions are recognized.

Conclusion

The role of a COO is as diverse as the motivations behind its creation. Understanding the specific role and challenges faced by a COO in their unique context is essential. Success hinges on building trust, defining clear responsibilities, and fostering effective communication between the CEO and COO.

By recognizing these principles and navigating the intricacies of their relationship, COOs can effectively address the challenges that come their way, contributing to the success and growth of their organizations.