The hallmark of the modern business landscape is change. Sometimes, that change is from traditional to modern systems or from in-person to virtual means. Oftentimes, this change comes with structural reorganizations, including the fulfillment or vacancy of certain roles. Unfortunately, this leaves around 40% of leading companies around the globe without a proper COO. In their stead, many second-in-command (2IC) employees are expected to fulfill this role without a title. Let’s examine more about the role of a COO and how to empower them with COO coaching below.
The Rise of the COO
Regardless of how good a second-in-command can be, the value an official COO brings is undeniable. In fact, many companies realizing the value of COO’s have resulted in a 16% increase in the role within companies between 2018 and 2022. But, in order to provide these benefits, what roles do COO’s fill?
There are 7 primary roles for a second-in-command. Firstly, they can act as an executor who executes strategies for daily results and a ‘change agent’ who leads specific business changes. They can also serve as a mentor for a less experienced CEO or an ‘heir apparent’ who will succeed the CEO. Additionally, they can serve as a partner who co-leads or ‘the other half’ to a CEO in order to complement a CEO with known unique skills. Lastly, they can act as an MVP role, which is simply too valuable of an asset to be lost from the company.
Despite the various types of roles a second-in-command could fulfill, there are 3 consistent attributes that remain the same across all successful second-in-command. They all have acuity, organization, and process/structure. A 2IC’s acuity refers to their ability to quickly grasp complex concepts and effectively multitask. A 2IC’s organization skill is the ability to define priorities and allocate appropriate amounts of time, energy, and goals to those priorities. Lastly, a 2IC’s process and structure skill is their ability to reduce complex processes, break down large goals into smaller targets, and to create accountability while providing consistency.
The Role of the COO
Attempting to get someone who has all 3 attributes, much less the ability to fulfill the 7 roles, is a tall order for most companies. Consequently, there are typically around 4 CEO’s to every 1 second-in-command or COO on average. This ratio has resulted in a major decrease in operational performance within many businesses. These determinants can be seen on an emotional level for CEO’s or on the company’s bottom line.
In regard to the CEO, they often report feeling overwhelmed, not getting enough done, and having no personal time. In terms of business production, they also report spending time managing employees rather than growing them as well as working on areas of the business that are especially energy-draining. These negative sentiments are reflected numerically as well.
Empowering the COO
Without a COO or second-in-command to support the CEO, companies usually lose 20-30% of their revenue every year to inefficiencies. Similarly, as much as 66% of time dealing with daily occurrences such as employee and operational micromanaging, rather than strategic long-term planning. Besides the negative affects and monetary consequences of missing a COO, there are some complications for getting a COO in the door as well.
A lack of clarity in the role, chaotic work environments, and unengaged teams are all a few challenges intrinsic to the role today. Aside from just the position itself, COO’s face external challenges as well. 44% report worker shortages and employee turnover, 43% report digital transformation initiatives, and 29% face supply chain disruptions as their largest obstacles. With such complicated modern problems, the skills and tools previously used to train COO’s are inadequate.
Bringing it All Together
Fortunately, companies have arisen to meet this growing need. Advising companies like Diane Integrates help empower second-in-command and COO’s alike. Through personalized coaching, you can expect improved clarity, accountability, accelerated results, and a company that is properly aligned. Overall, this can culminate in an ROI of up to 788% from coaching alone.
In order to best take advantage of COO’s and the benefits they offer, it’s important to fill the role with the right person. With Diane Integrates, they can select the best talent for the job, and help train them to best help your current situation. Whether you aim to find your new COO, or help support your current one with COO coaching, empowering them with proper coaching is essential for your business.
