Is it Time to Hire a COO? Your Guide to Making the Right Decision
You may have noticed your executive team needs to make a change. Maybe some areas need help, or you realize you could be more productive if another executive were brought on. Bringing in a COO to assume responsibility for the day-to-day operations of your business and work alongside the rest of your leadership team is a big decision and not one you should take lightly. We've put together a guide to ensure you make the right decision when your team is ready to open this role.
What Is The Role Of A COO?
So, what exactly is a COO, and how can it benefit your business to have one? According to Oxford Languages, "a chief operations (or operating) officer is a senior executive responsible for managing the day-to-day operations of a company or other institution."
The COO will work alongside and in conjunction with the CEO. Beyond dealing with operations and management, it is crucial to have a COO who can also take over should a CEO leave their role for any reason. Having someone as second in command not only improves productivity but can also ensure there is a seamless transition should the executive team need it.Team Alignment Vs. Team Building
What Makes A Great COO?
There are many characteristics to look for when interviewing potential COO candidates. It can feel overwhelming knowing which is best. So let's break down some non-negotiables regarding what makes a fantastic COO.
Strategic Mindset
Strategy is a massive piece of success in your organization. A strong COO who will succeed in your company has a strategic mindset and can generate ideas and strategies to reach your goals and grow your business. Having proven success in business strategy is something to look for when seeking the ideal COO.
Collaborative Leadership
Being in a company's executive team means a lot of collaboration with multiple heads of operation. Therefore, your new COO must work well collaborating and understand the importance of sharing ideas and strategies. Beyond collaborating with the executive team, a fantastic COO will be open to collaborating and hearing the opinion of your staff. Allowing this type of leadership means an efficient, vital workplace and increased productivity.
Strong Communication
It is no secret that your executive team needs strong communication skills to succeed in leading. Having someone who can clearly define tasks, help staff understand their roles, and explain strategies and goals in a way that makes sense is a significant key to their leadership's success.
Strong Leadership Skills
Leadership is a challenging role. Managing a business and personality can be complicated. Hiring a COO with a firm hold on who they are as a leader and how effective their leadership is will make a difference in how well they carry out their duties. When your staff is confident in its leadership, they are motivated to perform well and reach their goal.
When to Hire a COO: Recognizing the Signs
You may have hesitated to hire a COO and are unsure if your organization even needs one. But there may be signs that your company needs one more than you think. For example, if you notice your CEO has too much on their plate or they cannot accomplish important tasks they once did, it is time to hire a COO. Alleviating some stress from your CEO will create a more relaxed environment and increase efficiency. Having someone come in and work as the CEO's right hand can also improve creativity and strategy. Another way to determine if it is time to hire a COO is when you find the CEO is spending more time managing the team than they are working on the overall business. While the CEO should have a hand in managing and being up to date on everything involving your staff, their primary role should be improving and growing the business. If managing the team disrupts these tasks, it is time to bring in a COO.
The Benefits Of Hiring The Right Fit For Your Business
As in any role you hire, finding the right candidate is important. It goes without saying there are many benefits to hiring the right person for the seat. Here are some of those benefits:
Reduce Operational Risks
Having the right COO in your organization will drastically reduce operational risks. With an additional set of eyes on company risks and another person involved in the day-to-day operations, it's easier to mitigate operational risks and help resolve them if they do occur.
More Effective Decision-Making
When working collaboratively, the CEO and COO can make better decisions together. Having a COO to bounce ideas off or having their opinion to consider when making decisions will allow for better end decisions.
Improved Financial Performance
When your business is running more efficiently, your finances will follow. Having a COO will streamline your processes, improve communication, encourage collaboration, and relieve the CEO's stress. All of these factors lead to over-improved finances and business growth.
Finding Your COO: Tips for Successful Hiring
It may be daunting not knowing where to start the hiring process or what to begin looking for. Organize your thoughts. Put your business and its needs at the center of the search. The below is a great place to start when your hiring process is in its infancy.
Understand What Your Business Needs
As we mentioned above, your business needs need to be at the core of all your decision-making, especially when choosing an executive team or hiring a member of your executive team. What needs to be added to your business right now? What skill set does your business require from a candidate to succeed? What kind of goals are you hoping to achieve over the next quarter, year, etc. Being able to start from a place of business needs will narrow down your candidate field and allow you to hone in on who is best for the business and its goals.
Seek Out Candidates With Relevant Experience
Experience is a must in management, especially high level management. Hiring someone who has proven successful as a COO will ensure they know how to do the job and boost your confidence in their ability to lead your company.
Assess Cultural Fit
Company culture is essential and a huge focus in the workforce. When good employees have found a culture they can flourish in, it's important to continue that atmosphere. Bringing someone in that agrees with and can mimic your company culture is essential to their success in leading and the success of your team's productivity.
Consider Working With An Executive Recruiter
Executive recruiters, like well-trained recruiters with GCE, can make all the difference when hiring for C-suite-level positions. GCE, for instance, uses a proprietary process to find the ideal candidate and a swift and effective vetting process to bring you top-talent candidates that make your decision-making more straightforward.
COO For The Greater Good of the Company
Bringing in a team member on the executive team can feel a little scary because there is so much at stake, but when you've determined you need one, finding the right person for the seat can solidify your decision. GCE can help you hire and goes to extraordinary lengths to find extraordinary people. Let's get an experienced, talented COO working for your company.