How to Hire a Second in Command: Your Chief Operating Officer
While the CEO's right-hand person is highly valued, the role is not always well defined.
One of the most critical aspects in the life of a CEO is their relationship with their right-hand person in the company, the Chief Operating Officer (COO). This connection is fundamental for strengthening operations and for the growth and development of the CEO. How can we better understand this role and ensure we have the right person to carry it out.
Defining an exact description of the role of a COO is challenging, as this position largely depends on how the CEO operates: their needs, weaknesses, and strengths. A Harvard Business Review study titled "The Second in Command: The Misunderstood Role of the COO" identifies seven types of COOs, each appointed based on the specific needs behind their hiring. This means that the COO can specialize in specific areas, adapting to what both you, as the CEO, and your company require.
In this role, there are no established formulas. Therefore, understanding it and setting a standard for success is complex. The COO does not necessarily have to be solely responsible for operations. Cameron Herold, CEO, consultant, and author, known as "the CEO Whisperer," says that "the CEO-COO relationship should be like yin and yang," meaning the COO is the counterpart to what the CEO does not master, like, or needs help with. You might ask, "Wouldn't they hate that job then?" That's why you must find someone who is good at what you are not and enjoys it. That's the real challenge.
You shouldn't rush to find a COO. Being an entrepreneur is lonely, and we carry many responsibilities and workloads, but before seeking a COO, you should consider if that's what you need at the stage you're in. Often, entrepreneurs hire a second-in-command too soon. Sometimes, what's really needed is an assistant or someone to help with your responsibilities, instead of feeling the urgency to fill such an important position.
To determine the specific skills your COO should possess, Herold suggests conducting an exercise called "Activity Inventory." This involves listing all the tasks you perform over a month, from strategic meetings to conversations with suppliers, email responses, and budget planning, among others. No task is too small. Then, organize these activities into the categories of "incompetent," "competent," "excellent," and "outstanding." This will help you identify the tasks to delegate. Next to each task, note how much you would be willing to pay for someone else to do it for you.
To ensure their success, focus on establishing key performance indicators and clear objectives from the job description. Defining them from the outset will help attract the right people for the role and deter those who cannot meet those expectations. Most importantly, you must have full trust in this person. Take the necessary time to interview them, get to know them thoroughly, and ensure their aspirations align with yours and those of your company.
Having a second-in-command is not an excuse to disengage from the business. On the contrary, this person will be by your side at all times. The role of the COO can vary according to the needs of each company and CEO. The relationship you establish will be key not only for the growth of your company but also for your development as a CEO.