When you need a Chief Operating Officer
"Not everything that counts can be counted, and not everything that can be counted counts."
Being the Chief Executive Officer (CEO) of a company or business division can be a very lonely adventure. This is because you have to provide the vision, deal with day to day issues, manage human resources and generally be in the know about everything. The problem comes when your company is growing too fast, or in need of radical change. It can become very daunting to run the business whilst managing this change. Sure, you will invariably have a finance, marketing and technology officer to support you. But these are more specialist areas. There are times when you wish you had someone to talk to, to bounce ideas off and also to share the burden about the whole business. This is when a Chief Operating Officer (COO) comes into play.
A COO is like a twin partner to the CEO. It is an individual that, technically, should perfectly complement the CEO’s shortcomings. The problem here of course, is that every CEO is different. Therefore, by default, the skillset requirements of a COO will vary accordingly. This probably explains why COOs remain mysterious as a class: The role is structurally, strategically, socially, and politically unique—and extraordinarily situational.
I have worked in a variety of similar positions supporting the leaders of the business and in my view, there are categories that COOs can fall into. These are:
- The Deliverer: Responsibility for delivering the strategies developed by the top leadership team. You generally need this individual in large global enterprises, where the business sector is operationally intensive or simply due to the dynamic environment.
- Transformation lead: Responsibility for leading a major transformation programme of the business e.g. a major acquisition.
- The teacher: You have some highly experienced COOs who are able to support the CEO as they grow into their role. This is normally in a startup or fast growing/changing business. An experienced COO will be able to steer the business in a turbulent environment whilst helping the CEO to lead the business.
- Jekyll and Hyde: Sometimes a COO is needed to complement the existing CEO, to present a different face to the world. This is where the current CEO may come across to the world as harsh. In these circumstances, you need a presenter that can portray a softer/alternate impression. This on top of their role in delivering.
- Two is a company: Sometimes, CEOs want to work with a partner. This is when a CEO is stronger with another similar leader. Its almost like having two CEOs but with different skillsets.
- The replacement: There are times when a CEO knows they need to step down at a certain point in time. Being the true leader they are, they need to identify and groom the best candidate. In this instance, the COO will be this candidate and will be appointed as the new CEO.
- Please do not go: There are times when you want to hold onto key executives. The best way to keep them is to offer them a senior position e.g. COO.
My main positions have been "the Deliverer", "The transformation lead" and "Two is a company" categories.
What has made the relationship work for me is the following:
- I have always acknowledged and respected the CEO as the leader. This is critical because it allows the trust to build. The CEO has to know that he has someone to talk to or confide in. This someone who the CEO can share his most intimate secrets and concerns with in the knowledge that the COO will reciprocate.
- It is important to do the best job you can. To over excel and be the example. Do not try and appear to be CEO. If you earn the position, it will come. Just do your best job.
- Be a mentor to those around you. Aspire to the vision that you want those around you to excel and surpass you. In having this view, you will earn the respect of your peers and stakeholders.
- The lines of authority delegated between the CEO and COO need to be absolutely clear. These are two powerful positions in a company and issues in who makes decisions can cause major issues. The CEO and COO have to be absolutely clear that when they make decisions, they are empowered to do so without fear of being second guessed. The trust in judgement has to be there.
- The CEO has to make clear that where a decision has been made by the COO, any discussion about such decisions needs to be made with the COO. This is paramount. Otherwise, the risk is that the COO will be undermined and not really confident that his decisions will ever truly be final.
- Finally, and most critically, the communication between the CEO and COO has to be crystal clear and without any ambiguity. Both have to be really honest and open with one another.
I wanted to share this overview about COOs because there are a variety of open positions for this job title and it surprises so many people about the uniquely varied skillsets for the role. Its clear that the COO role is critical to an organisation, to the CEO and the success of the business. As businesses grow and change, so will they need a strong COO to take them forward. Best of luck.
Rashid