Thinking of Hiring a COO? Ask Yourself These Questions First

All right, so on today's episode, we're.

Going to talk about why do you hire a coo? Why do you need that second in command? What's the real leverage that you're going to get as that CEO inside of the company? What kind of leverage should you expect? What are the key reasons for bringing one into the company? When do you bring one into the organization? We'll do a really deep dive around that. You're going to love this content and you can also share this content from our Second in Command podcast and YouTube channel, as well as anywhere that you listen to podcasts. We'll see you on the inside the.

Second in Command Unleash the power of your COO Written and narrated by Cameron Herold why hire a COO? The COO is the CEO's right hand and left hand. To be most successful, they need to be able to pick up where the CEO leaves off at any given time. A COO is a combination of a mind reader and a publicist for the CEO. Lindsey Smith, Chief Strategy Officer at Title alliance the right COO can bring so many benefits to a CEO. The exponential power of the right two zero in a box, the circle of mutual complementary energy of yin and yang. But only if the CEO knows what they're looking for. Before you know what you need from a coo, you need to understand the kind of CEO you are, who you are, what you do, and what skills you need to bring into the mix and activity inventory CEOs aren't always given to self reflection, but that's where finding the right second in command starts. It might not be an appealing prospect, but think of it this Hiring a COO is going to make your business better, your life better, and you better put the time into pinpointing the changes that will improve your situation the most, make your personal situation more sustainable, and make the time you spend on your business more effective. Otherwise, you'll end up hiring someone who would make someone else's life better, but not necessarily yours. The best place to start is with an activity inventory, a process I learned from Dan Sullivan at Strategic Coach. Imagine someone followed you around at work for a month and filmed everything you did, from replying to emails and booking flights to chairing meetings and planning budgets. Make a list of all the tasks the camera would capture, then categorize them in one of four ways. I for incompetent, meaning you suck at it. C for competent. You're okay at it. E for excellent. You have a high level of skill at it, but you don't Love it and UA for Unique Ability this is what you're best at, and you would do it for free if you didn't need to feed yourself and your family. The fourth concept is key. Sullivan shows us that unique abilities are what allow you to maximize your leverage as a leader by ensuring you only work on projects and areas of the business that you're best suited to. When you're in the realm of your uas, you love the work and feel energized by it and the people around you gain energy from you. If you're spectacular at something but don't get energy from it. By the way, don't class it as a ua. Leave it as an E instead. The interesting thing about your UAs is that they're difficult to recognize because sometimes they're what come most naturally to you. Something might seem so simple you assume that anyone could do it if they just copied what you do, but that's not the case. The whole point is that not anyone could do it. Other people might be excellent in your unique ability area, but that doesn't mean that they love doing it. It doesn't mean they would do it for free. In my case, I'm excellent at sales, but I don't love selling. I find it difficult and the thought of one more sales call drains me. That's an E for me. My UA is speaking and coaching. If someone could fly me around the world by private jet so I didn't have to spend all my time in airports, I would do every speaking event I got offered. I'd take my wife with me and we'd party. I'd fire up the audience, build a brand, and love the process. I don't particularly enjoy the networking and travel both ease, but speaking is amazing. It's a unique ability area for me, for sure. It wasn't until I worked with Dan that I came to understand my unique ability. Although looking back, I realized that it was always involved recruiting and rallying people. I was good at sharing my ideas, starting from winning public speaking contests in second grade to I also love being on stage and playing the lead role. In 1989, when I was 24, I started helping entrepreneurs through coaching, which I enjoyed. And it was quite a step given that business and life coaching didn't even become a profession until 1993. In fact, by 1994 I'd already coached 120 entrepreneurs. Once you've broken all your professional tasks down into four categories, you can start to identify work that you could delegate. The first step is to get all the incompetent and competent tasks off your plate. Stop doing those tasks at once. Outsource them, optimize them, automate them and delegate them to an employee or hire an executive assistant to do them for you. Now take all the higher value initiatives that you don't love doing and that are beyond the purview of an EA or regular employee and put them in a bucket. That builds out a job description for a second in command. Then you hire a great COO to do all the important high value work. That isn't one of your unique abilities. If that sounds too simple a description, it's really not. Once you know what you need, the whole exercise becomes a lot more straightforward. Free up time, multiply energy and get more done. The eyes, sees and even ease on the activity inventory. Don't just reveal the tasks that you don't love. Doing those tasks actually SAP your energy and that of the company. If you continue handling them, they'll be a net drain on your organizational capacity. Just because you've often done something doesn't mean it needs to be done or that it needs to be done by you. Remember your to do list doesn't mean you have to do it. Identify what drains you I get overwhelmed by running operations, for example, because I've got a million things I want to get started on. I need someone to take all the ideas, prioritize them, run them, and manage the team and resources so we can get more done faster. That is key, but it's not my unique ability. Once you know what sucks energy from you, you start to crystallize the role that you need a second in command to fill. The right COO gives you a chance to customize your experience within the business by getting stuff off your desk that has to be done, but again, not by you. The right COO frees up the time that you've been spending on tasks outside your unique abilities so that you can devote more to those areas that you love and that give you energy. Then you can feed that energy into the rest of the organization instead of projecting exhaustion, frustration or stress. That's where a COO adds real leverage. Part of the CEO's job is to be the Chief Energizing Officer, bringing more positive energy into the business every day. By working only on high impact areas that give you energy, you will positively affect the whole organization. On the other hand, if you spend time working on roles you hate or aren't good at, your negative energy will be detrimental to everyone. No one wants to see the CEO slumped over a set of spreadsheets with their head in their hands. Quantum physics talks about momentum creating momentum and energy seeking other similar energy closer to home. Consider how meeting a grumpy barista in the morning can set a negative tone for your day, just as meeting a friendly and positive one can leave you full of energy. If that momentary interaction with a relative stranger can affect your day, which it has been scientifically proven to do, then just think about how important it is for leaders who work with employees for dozens of hours every week to take responsibility for their attitude, impact and energy. Position for Growth or Exit Every CEO will eventually exit the company, whether they sell, retire or die. That's not meant to be mawkish. It's realistic. Even though most CEOs feel like they want to lead forever, a COO can be a key ally in helping to position a company for the CEO's eventual exit. The CEO's obligation to their shareholders is to build an organization that runs itself, doesn't solely rely on the CEO, and can continue on with someone new. That resilience and longevity require having the necessary systems and teams in place. Those systems are best put into place by a COO to ensure that a company can continue to scale without the current CEO.

Remember, too, that the COO might be or become the CEO's heir apparent.

A business will always have a CEO because someone has to be the leader, setting vision and strategy, being accountable, and serving as the legally required signing officer. But it won't always be you. Trusted partner. People assume being a CEO is exciting, but I don't have to tell you that it can also be quite lonely. You're isolated. You can't really tell your board of directors or advisors everything that's going on. You can't lean on your employees when you're scared, overwhelmed, overworked, worried or unsure. You can't even share with your spouse without risking stressing them out if things aren't going well. The CEO needs to keep their game face on and project excitement and positivity so others feel inspired to follow them. But where can the CEO turn for positivity and reassurance? The answer is a trusted and reliable COO.

When I spoke with Jim Morris Rowe.

COO of 15Five for the Second in Command podcast, he recalled his experience as a CEO. It was lonely as hell. As a COO, he sees himself filling a friendship role for his own CEO, David Hassell. His experience meant that he intuitively recognized the value of filling that void. No matter how invincible a CEO might feel, they should never underestimate the value of having a partner. You need someone you can trust, be vulnerable with and open up to the yin to your Yang. You need someone who will tell you the truth, including when they think you're wrong, so that you can keep moving forward in a positive direction. It's not simply about your personal feelings. The whole health of the company depends on you feeling and being happy, stable and supported. That's how you can provide stability and support to anyone who looks to you for direction, which is everyone. It's never a good idea to hire people for roles just because you like them. They're not there to get along and hang out. They're there to do a job. For the coo, however, it's essential to find someone you like. A CEO needs to make sure that they have a coo. They gladly hang out with whom they like and respect and whom they can share non work activities to build their connection, whether playing tennis or golf, going for a run or a bike ride or cooking barbecue. That natural affinity helps build mutual trust. And that's how you get to be two in a box. If it's not there, you risk bringing the wrong energy into the organization. At 1,800 got junk Brian and I had an unfair advantage. He'd been my best man at my wedding three months before I started to work with him. So we already knew everything about each other and implicitly trusted each other because we'd been in a business group together as entrepreneurs for four years. He'd seen me build two other companies. He knew how I thought and reacted as well as what my skills were. He knew me so well, it was an easy hiring decision. Once he decided he needed a coo, you can't always replicate that foundation of friendship. Of course. It's rare that you're friendly with exactly the right person you need professionally. But you can build a foundation. When you find someone you like and respect, make sure the person you choose fits with what you need temperamentally. Be clear on what you're looking for, including the need for friendship. In an often lonely role, the COO should be the CEOs built in business, life preserver, best friend and sometimes therapist. A complete support network for everything in a single individual, keeping up and handling disruption. As we've seen, the role of the COO originated with complex businesses like airlines that were hugely challenging to run. But recently COOs have become increasingly common in startups and disruptors. Technology, computers, automation, the Internet, global organizations and robotics have given every single business a wake up call, enabling huge leverage and introducing new business models with exponential growth. Even highly experienced CEOs can get left behind, and businesses that don't adapt will die. As I and others have said many times, if the rate of change outside your business is greater than the rate of change inside your business, you're out of business. The COO must not simply understand the rate of change, they must also embrace it and get out ahead of it. That's where youth can be an advantage. I was second in command for the first time at age 33. Today, our youngest COO alliance member, Julia Gordy, is 26. Younger COOs tend to have impressive strength in technology, automation and digital marketing, even though they often have room to grow on the people side of the business, such as hiring, aligning teams or onboarding, building consensus and conflict management. That's fine, they can develop these skill sets quickly. I find it fascinating to watch kids play video games like Minecraft because the games are all related to the way work gets done in real life. Collaborating as a team, talking remotely with people around the world, dividing tasks, project planning, delivering asynchronously. Young people understand the new ways of working and if you want your business to succeed, you need to understand as well. In the past, people showed up at work at 9am and left at 5pm but now many people can work anytime over a 24 hour period and in multiple time zones. They don't have to be in an office. They can work from anywhere around the globe. In fact, I'm currently sitting in Denmark running the CEO alliance from Europe and proofreading this chapter in a cafe. When harnessed successfully, these changes massively leverage the power of the COO and therefore the CEO. The CEO is often learning at the same time as the COO. Entrepreneurial CEOs in particular may have an oh shit moment when they realize their business is by far the biggest endeavor they've ever undertaken. Maybe the company started as an idea with a friend, but then every day it's a little bigger than it was the day before and eventually they realize they need help. When I became involved with Brian, Disruption had just emerged as a business model. We brought a new spin to an old industry. We collected junk with a brand new quality, focus areas to connect the customer and a premium service. We didn't send garbage collectors to someone's house. We sent clean cut college students in uniforms and shiny trucks. We did the work for the customer so they didn't have to lift a finger other than point at what they wanted hauled away. Think of all the coffee shops that existed before someone said let's call them Starbucks. There were 17,000 independent junk removal services when we started and we saw the opportunity with the right systems in place for branding. We were disruptors. We harnessed the Internet by aiming for 30% of our bookings to come from online instead of through our call center. In that way, we changed the industry. The pace of change continues. Just look at the great resignation and Businesses have to keep up or die. One of the roles a COO plays is to think strategically and learn from better companies and other industries. That's one of the reasons I started the COO Alliance. Its strength comes from giving COOs access to 170 plus other COOs from 17 countries who see opportunities differently, leverage technology tools differently, and approach change differently. This cross pollination inspires, educates and offers a place to ask questions so our members can concentrate on working on the business and not just in it. A quick note. It's a little ironic, but by starting the COO Alliance, I've become a CEO. It feels very different given the choice. At many times I would probably rather still be a COO as it better suits my natural temperament. But it turns out I approach this new role a bit like I approach my COO role anyway. I'm a rare breed, combining some entrepreneurial CEO DNA, a bit of mania, a bit of excitement, a bit of marketing pizzazz with the COO's ability to get things done. Rocket fuel. The right COO is a game changer. As mentioned previously, the power of the Right two isn't just doubling, it's exponential. Brian and I were like nitroglycerin. We ignited productivity and rapid growth. In October 2000, when Brian shared with me his vivid vision, what he then called his painted picture of what his company would look like, act like and feel like in 2003, I knew how to build it. Not only that, but he was okay with moving aside to let me get on with it while he focused on his unique abilities. We had a remarkable yin and yang in those years, which is why people ran around conferences saying I need a Cameron. Everyone around us could see it too. A strong relationship, real trust and great skills to match. We didn't interfere with each other's jobs. Other times when I'd been second in command had been different. At college propainters, I wasn't officially the second in command, but rather ran a territory division with full autonomy. Even though I reported to a VP who reported to the CEO. I had so much autonomy it was like being in a COO role when I was president of a private currency company and then the second in command. For the franchising group of Autobody chain. I again had autonomy. But 1, 800 got junk was the only time I was truly a COO responsible for executing someone else's vision. Regardless of the exact title, for your second in command, the right person under the right circumstances can amplify, multiply and ignite your potential as a leader and the potential of your company. This has been the second in command. Unleash the power of your COO. Written and Narrated by Cameron Herald Text Copyright 22022 by Cameron Herald Production Copyright 2023 by Cameron Herald. All rights reserved. Thank you for listening.