When You Can’t Afford (not to have) a COO
A number of our professional services clients express the need for a skilled Chief Operating Officer (COO) but feel they just can’t afford the role given their stage of growth. Even highly profitable small and medium firms feel the margin squeeze between increasing payroll and operating costs and client pressure to manage fees.
The truth?
Once they experience having the right COO they never go back.
Why?
Top reasons I hear again and again:
The COO is the connector. Organizations are naturally prone to silos which erode effectiveness and efficiency. The COO is the master generalist who is continuously connecting the dots, smoothing over operational issues while watching for stumbling blocks ahead.
The COO is the builder. As a business grows, new processes, technologies, roles, and departments are implemented. As the COO has an excellent grasp of strategic objectives, operational decisions are made in line with where the business wants to go which saves time, money, and headaches in the medium and long-term.
The COO is the energy-saver. Especially in SMEs, all roads point to the CEO. It’s their baby/creation/masterpiece/work-in-progress/dream. The COO is the first or final stop for a number of queries and issues that would otherwise squarely land on the CEO’s plate. The COO tends to be more capable in resolving most day-to-day issues given their background, leaving the CEO more time to spend on bigger decisions or better yet, in their ‘genius zone’ – which is what got their awesome business started in the first place.
The COO is the coach and cheerleader. Leadership can be lonely, and it can also be an echo chamber. A great COO is a sounding board, and with the right skillset can help the CEO as well as other leaders, think through key challenges and opportunities.
The COO is the problem-solver. A great COO will know enough about all critical parts of the business to be able to ask the right questions that lead to solutions. Their job is to see the forest and the trees, so they can solution with both short and long-range business planning in mind, ultimately better positioning the business for success.
The COO is the innovator. Naturally having access to pretty much every corner of the business, the COO is in the perfect position to take the best across the board and both drive innovations as well as create the environment for others to think creatively. With the speed of business, fostering organizational creativity is a superpower.
The COO is the ready-for-the-apocalypse thinker. Perhaps the better term is ‘risk manager’ but a little drama makes for more fun, no? The best CEOs are dreamers, risk-takers, passionate charge-ahead personalities, so the COO is the Robin to the Batman who is looking out for ‘gotchas’ and the one to call when the crap hits the fan because they’re the ones with a plan.
For smaller organizations, it can be hard to prioritize investments in roles; one solution may be a fractional role.
The key is understanding what your key needs are, what skills and expertise on the COO’s part will support those needs, and whether you can work together in a trusting way.
For help determining your operational leadership needs, structuring the role or sourcing the appropriate talent, contact us – we’ll be happy to help.