You’re a high-growth, middle market CEO…trying to “make hay while the sun shines” and grow your company. You probably see your days getting bogged down in your business’s day-to-day activities. You’re likely spending your time keeping plates spinning instead of growing your business. And I bet you get so bogged down in daily minutiae that sometimes you just feel like you’re drowning.
Your solution, more likely than not, is that you need to hire a head of operations. Depending on your size and stage, it could be a VP of Ops, Director of Operations, or Chief Operations Officer (COO). [For purposes of this blog, we’ll simply refer to this position as the “COO.”]
I can’t tell you how many times through the years I’ve counseled emerging market CEOs on this (while at Ernst & Young, Tatum, or through my experience as a YPO’er). So often, it simply comes down to hiring an A-Player as your number two.
“But we’re too small for a COO…”
…you might say, and you may be right, but maybe not. You’d be surprised how a COO can add significant value to small and medium sized, middle-market businesses, just like they do for large ones. Indeed, a COO might just be the piece that you’re missing.
Is it time for you to hire your number two?
Like any business decision, you should hire a chief operation officer if they will add more value to your company than they will cost you (obviously). But how can you predict how much value they can add?
You need to consider how your new COO will free up your time and allow you to make your company more profitable. What will you do instead of managing operational issues? What can your COO do better than you?
- Will you drive new sales or make new partnerships that will grow your top line?
- Will your COO save you money by making your operations more efficient?
- Will you use your time to explore new strategies and/or markets to expand your business?
If you can come up with a forecast of how your financial situation will improve through ways like those I outlined above…and that’s more than you expect to pay a COO, then it’s time to hire up! Keep your company moving up to the next level!
Trust is your most important asset
Your chief operating officer will likely be the most important (and most difficult) hire that you will ever make. That’s because, in order for them to be successful, you will have to trust them with a job that, until now, you’ve chosen to do yourself. Not only will you have to make sure that they have the skills and experience to be ready for the role, you have to trust their judgment and character.
How to find your COO
Please, don’t hire the first pretty face or impressive resume that walks through the door. And don’t just go for the big name. Just because they’ve been at GE for 10 years doesn’t mean that they are the right fit for your $15 million business. In fact, it’s quite the opposite.
If you’re looking at someone who successfully transitioned a company from $15M to $50M and that’s also your goal…then you might just have a solid candidate: someone who has successfully accomplished the main 3 or 4 goals you have for your company and this position.
I’ve found that a behavior-based interview processes, like the Topgrading methodology, is a great way to build confidence in such an important hire. That’s why we use Topgrading for our clients and our team at HireBetter.
A COO can be your new secret weapon
You, as a CEO, are uniquely positioned to make big changes to your company. But if you get bogged down in daily activities, your hands are tied. If it looks like you can create real value by breaking free of your daily obligations, consider hiring a COO. It might be the most liberating decision that you can make for your company, and yourself.
If you think it might be time for you to hire a COO, please contact HireBetter. We can work with you to help you determine exactly what the COO needs to accomplish, and then we deliver A-Players to you.
