Why Should You Hire a Chief Operating Officer? (And When to Do It?)
Hire a COO to increase your company’s operational efficiency while ensuring compliance with all required industry standards, quality standards, and other requirements. Win the trust of reputed clients! Companies can choose to work with “COO for hire” service providers or work with C-suite headhunters to get an in-house COO. Here are some tips on COO hiring.
When your business expands, and you need someone at the helm to supervise the quality, management, and outcomes of each order, project, or business function, it is time to hire a COO. If your need is limited to getting consultative support, you can consider firms offering COO for hire services. If you need to hire a COO for an interim or permanent role, the best way to find the right professional is through C-suite headhunters.
Let’s first understand the position clearly.
Who Is A COO?
A COO is a CEO’s second in command. The COO is responsible for providing leadership, management, and vision to ensure that the company has effective personnel, operational controls, and administrative and reporting systems in place.
In Which Types of Companies is COO Hiring More Common?
1) Manufacturing Companies:
The Role of a COO is to manage activities at the factory/manufacturing location, which includes efficient and effective production, quality maintenance, and effective distribution of the manufactured product to the market.
As per top C-suite headhunters, many mid-sized manufacturing companies choose COO for hire services to get consultative support for certain global projects. When they have projects and orders that need a leader with the right knowledge of the process, compliance, industry standards, and risk management, they hire a COO for an in-house, permanent role.
2) Companies With Operations in Different Locations / Jurisdictions:
A COO position is held on a global basis and assists the CEO in day-to-day operations.
A COO collaborates with the Head of Operations in Different Locations / Jurisdictions or Head of the Country, who manages the day-to-day activities and ensures that all management requirements are met. COO’s focal point is to execute business plans and help the company achieve its operations target in Different Locations / Jurisdictions.
3) Companies That Need to Manage Projects and Processes Complying with Diverse Industry and Compliance Standards:
COO monitors all operational processes and procedures using a compliance management system to ensure that the company complies with all legal regulations and ethical standards.
The COO acts as a contact person and liaison between department heads and senior management, and the COO conducts regular assessments to determine whether policies are compliant with the law.
4) Startups with Operations in Different Countrie:
The COO ensures achieving traction in country markets by bringing in Innovative Ideas and bringing seeding or funding for the startup, which increases the visibility and attracts the attention of the market, and allows for the cash flow to meet expenses until profits pick up.
A COO oversees meetings with top management and staff to review operational performance and implement procedural improvements, conducting administrative studies to identify issue areas and implementing procedural adjustments.
Benefits Of Hiring A COO
C-suite headhunters who have participated in hundreds of COO recruitment activities point out that the benefits of hiring a COO are relative to the type of company, its size, and operational needs. There are, however, some advantages common to companies across industries.
1. Ensure Compliance with All Relevant Legal, Financial, And Regulatory Requirements Across Production Centers
A COO advises the Board of Directors and top management on law, norms, and standards, as well as new developments. Companies hire a COO with the abilities to provide clarification on any compliance-related issues, as well as to conduct a compliance risk assessment (at least once a year) and develop a risk-oriented activity plan for compliance assessment, which will then be submitted for approval and made available to internal audit.
The COO promptly reports any significant changes/observations relevant to compliance risk to the Board/ MD & CEO.
2. Optimizing Your Capacities to Manage Huge Orders and Complex Delivery Standards
Chief Operating Officers (COOs) have the onerous responsibility of ensuring that all operational tasks inside a company are carried out as effectively as possible. A COO manages Huge Orders and Complex Delivery Standards by ensuring there is no mismatch between overstocking and under-stocking.
3. Implement Innovative Process and Product Optimization Initiatives
Hiring a COO provides a thorough examination of the most essential KPIs, which is vital in organizations that require robust operational procedures as well as those wishing to enhance present methods. The COO makes judgments about the delegation of day-to-day operational tasks within the internal team. Companies hire a COO when they need someone who delivers the best long-term operational research outcomes.
4. Control And Reduce Operational Risks Across Business Units
A COO acts as the single point of contact (‘SPOC’) for its risk landscape in all operational risk concerns by creating and maintaining the aforementioned roles, connecting with Centers of Expertise (‘COEs’) as appropriate. A COO, with consideration of the CEO, announces policies regarding cyber security and financial crime surveillance operations and ensures that risks across the business are mitigated.
5. Enhance Production Efficiency and Output Across Operation Centers
Hiring a COO can improve a process’s operational efficiency by automating repetitive tasks. A COO also puts in place measures to transparently manage employee time, having the right KPIs set for each team member. Other functions of a COO in this regard include facilitating cross-departmental collaboration, developing a financial strategy, removing barriers in data flow and analysis, and leveraging PSA Software to increase operational efficiency.
When To Hire A COO?
1. When Your CEO Is Forced to Focus More Time on Operations, Less on Higher Goals
There are only so many hours in the day, and it’s doubtful that your CEO can keep a tab on everything on the operations side.
Hiring a COO reduces the pressure on the CEO, helping the latter to focus on achieving the mission and vision of the organization. A COO is responsible for managing the company. Finding an influential COO who shares the company’s purpose can help the organization focus on its goals.
When it becomes difficult to keep track of each project and its progress, when there is a huge volume of business or orders or projects, and when everything gets much more complicated – these are the signals, indicated by reputed C-suite headhunters, that the CEO needs the assistance of a COO.
2. When You Need a C-Suite Leader for Driving Innovation and New Levels of Operations Efficiency Achievements
A COO is in charge of managing your company and so has the authority to modify how it functions. COO helps the company focus on what is the most important goal, and it increases the efficiency of the company. Chief Operating Officers have experience executing orders because they are in charge of the whole operation of a company. A well-trained COO will understand the logic behind the company’s operations and will ensure that all plans are carried out to the greatest degree possible.
Many organizations are proud of their bootstrapped past in today’s competitive business environment. However, for most businesses, there comes a moment when you need to position yourself for development, and your present procedures aren’t cutting it – this is when you need to hire a Chief Operating Officer. Hiring a COO is not a sign of weakness; rather, it is a sign of expansion.
Alliance Recruitment Agency
Expert CIOs are hard to come by. However, with the right C-Suite executive search teams, you can find the right individuals.
Alliance Recruitment Agency provides the services of top-tier C-Suite executive search specialists in the UAE. We have 11+ years of C-Suite recruitment experience. Contact us to find great professionals for your company’s C-suite.