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  • Writer's pictureJulleona Marin

What's the Point of a COO?

Updated: Jan 6

At the very basics, the role of a Chief Operating Officer (COO) is to act in balance of the CEO and is important for ensuring an organization's smooth functioning. Today, let's jump into the aspects that define the purpose and effectiveness of a COO.


Before we jump in however, I want to be clear that a COO is not necessarily required within your organizational structure. Yes, there is a need for someone to act as the back-up to the CEO which could be a vice president, a director of operations or any one of the other c-suite positions. The CEO needs to have someone in place that can balance their visionary tendencies, with the need to get sh*t done.


The role of the COO is varied and dependent on the strengths of the CEO. Below we are going to discuss common factors to be mindful of when looking for your COO.


Inward-Facing vs. Outward-Facing Responsibilities


Inward-Facing Responsibilities

This one is pretty standard and the very basics of the role of a COO and that is effective operations management. Effective operations management i the bedrock of any successful business. A COO plays a crucial role in overseeing and optimizing internal processes, ensuring efficiency, and maintaining a streamlined workflow. This involves meticulous resource allocation, team coordination, and strong leadership to foster a cohesive work environment.


Outward-Facing Responsibilities

Now some COO's take on this responsibility and others do not, again, it depends on the strengths of the CEO. Beyond the organizational walls, a COO can extend its influence externally. This can include establishing and nurturing partnerships, managing customer relations, and strategically positioning the company in the industry. These responsibilities are paramount for sustainable growth and market competitiveness and are often the responsibility of the COO.


Coordination vs. Subject-Matter Expertise


Coordination in a COO's Responsibilities

Coordination is the linchpin of a COO's responsibilities. By streamlining workflows and fostering cross-functional collaboration, a COO ensures that each component of the organization works seamlessly towards common objectives. This involves creating an environment where information flows efficiently, facilitating quick decision-making.


Subject-Matter Expertise

While coordination is critical, subject-matter expertise should not be overlooked. A COO armed with industry knowledge can navigate complexities more adeptly, making informed decisions that align with the organization's overarching strategy. For example, I work exclusively as a fractional COO for construction companies because my 25+ years in the industry has given me a wide range of experience and knowledge I can bring to the position.


Empowerment, Not Rescue

The modern COO is not a rescue agent but an empowerment catalyst. Shifting from a reactive to a proactive approach, a successful COO focuses on building and empowering high-performing teams. This entails effective delegation, fostering a culture of trust, and nurturing leadership within the organization. Ultimately, the COO's job is to build the people to the company needs to thrive.


Systems and Shortcuts

Implementing efficient systems is a cornerstone of a COO's role. Leveraging technology for automation and digital transformation is not just a luxury but a necessity in today's competitive landscape. Striking the right balance between technology and the human touch is essential for sustained operational excellence.


Strategy vs. Tactics


Developing Organizational Strategy

A COO contributes significantly to developing the organization's overarching strategy. This involves long-term planning, envisioning future goals, and aligning operational tactics to achieve these objectives. This is where the strong relationship with the CEO is important, ultimately it is the role of the COO to bring the vision of the CEO to fruition.


Navigating Day-to-Day Tactical Decisions

In day-to-day operations, a COO must exhibit agility and adaptability. Balancing short-term wins with long-term goals requires making informed tactical decisions, ensuring that each action contributes to the larger strategic picture. This is where the COO must have intimate knowledge and understanding of the goals of the CEO and make appropriate decisions in the direction of the realization of those goals.


Self-Awareness and Personality


The Importance of Self-Awareness

Self-awareness is a hallmark of effective leadership. A COO who understands their strengths and weaknesses can leverage this knowledge to make informed decisions and build a team that compensates for any gaps.


Emotional Intelligence and its Impact

Emotional intelligence is not just a soft skill; it's a critical component of effective leadership. Building strong interpersonal relationships and navigating challenging situations with emotional intelligence is essential for a COO to lead with resilience and grace.


Shaping Culture

A COO plays a significant role in shaping organizational culture. Fostering a positive and collaborative work environment through clear communication, transparency, and employee recognition is integral to the overall success of the organization. It may be said that this is the primary role of the COO in building the people that run the business.


Working with the Board and Customers


Collaborating with the Board of Directors

Where a Board of Director's is in place, the COO's relationship with the board is built on reporting, accountability, and strategic alignment. Effectively communicating operational aspects and ensuring that they align with the broader organizational goals is paramount.


Managing Relationships with Customers

Understanding customer needs and expectations is non-negotiable. A COO must ensure that operations are geared towards a customer-centric approach, enhancing satisfaction and loyalty.


Desirable Qualities of an Effective COO

An effective COO possesses certain qualities that set them apart. Here are a few:


  1. Strong Communication and Interpersonal Skills: The primary skillset of the COO is as a clear and effective communicator with strong leadership skills. In the book Good to Great by Jim Collins he refers to the Level 5 leader, this is the level we want to strive for with the COO position. It is crucial for conveying operational strategies and fostering collaboration within the organization.

  2. Analytical and Strategic Thinking: A keen analytical mind coupled with a strategic outlook allows a COO to make informed decisions.

  3. Decisiveness and Problem-Solving Abilities: The ability to make swift and decisive decisions, coupled with effective problem-solving skills, ensures that operations run smoothly even in challenging situations.

  4. Results-Driven and Goal-Oriented: A focus on achieving tangible results and aligning operational activities with overarching goals is a key trait of an effective COO.

  5. Adaptability and Resilience: Given the ever-changing business landscape, adaptability and resilience are critical for navigating uncertainties and challenges.

In Summary

Being a Chief Operating Officer isn't just about daily operations—it's about building relationships, smart strategy, and embodying success. To navigate complexities and grow, organizations need to grasp the ins and outs of the COO role. If you're on the lookout for a fractional COO and business consultant, consider Coralee Beatty. With her practical expertise, she's empowered numerous organizations. For optimized operations and growth, reach out to Coralee today. Take the step to elevate your organization—act now!

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