In June, Business Sherpa Group’s Katherine Clarke-Nolan sat down with the CanadianSME Small Business Podcast to discuss the crucial role of leadership in small and medium enterprises and explore how strategic hires can transform business operations. We’ve linked the full conversation with host Maheen Bari here:
Listen: Strategic Leadership Essentials
How Can a Leader Recognize the Right Time to Bring a COO?
According to Katherine, hiring a Chief Operating Officer (COO) is a crucial decision for any business aiming for growth and stability. Understanding the unique challenges and opportunities a business faces can pinpoint the right timing for such a significant addition.
Leaders should consider bringing on board a COO or fractional COO earlier than they might think is necessary—this strategic hire should not be delayed until the business is overwhelmed or stretched thin. A COO plays an especially vital role when a company is scaling up and during critical times when strategic changes or a fundamental shift in direction are necessary. Factors such as planning to scale the business from one revenue milestone to the next or facing the necessity to pivot amidst changing market conditions signal the need for the specialized skills a COO brings to the table.
The real value of a COO lies in its ability to transform operational weaknesses into strengths. However, bringing one onto the team requires thoughtful consideration of the business’s readiness to support this new level of leadership. This includes financial stability and the maturity to integrate a COO effectively into the existing corporate culture and operations. It’s also important to hire a COO who is adaptable—can grow and move with the business—and knows when someone else needs to be brought on board.
Recognizing the right time to bring a COO on board is about alleviating current pressures and strategically positioning the business for successful growth, resilience, and long-term achievement.
Indicators That a Business is Ready to Support and Benefit from a COO
Katherine also outlines several key indicators that signify a business is ready to support and effectively benefit from the addition of a COO:
- Leadership Capacity Strain
- Growth Milestones
- Operational Challenges
- Strategic Reorientation Needs
- Ready for Professionalism
- Financial Stability
- Acknowledgment of CEO’s Limitations
How to Approach Bringing in High-level Executives
The first step is to have a strategic approach that clearly defines the role and ensures it aligns with company goals. Focus on cultural fit to guarantee that potential candidates resonate with the organization’s values. Make an inclusive search process, followed by thorough vetting, including detailed interviews and reference checks. Involve key stakeholders to gain various insights and foster support for the new hire. Implement a robust, conversation-based onboarding that goes into
detail about the business, facilitating smooth integration and emphasizing relationship-building within the company. Offer continuous support—such as mentoring—and set clear, measurable objectives from the start, with regular performance evaluations to ensure alignment and adjust as necessary.
Can a CEO and a COO Coexist?
The CEO and COO in an organization form a strategic partnership—the CEO sets the strategic direction to drive the organization forward, and the COO adjusts its role based on operational needs to execute these strategies. Katherine emphasizes the importance of frequent communication between both parties to ensure operations are running smoothly, which is especially important during periods of growth or change.
Summary
We extend our gratitude to CanadianSME magazine for featuring us on their podcast and a special thanks to host Maheen Bari for her collaborative efforts and dedication. You can access the complete discussion via the link below!
