Defining the COO role and operations in a growing company

Executive overview

Most companies hand out C-suite titles before the roles or responsibilities justify them. An operations person exists to take everything off the CEO's plate that the CEO is weak at, doesn't enjoy, or shouldn't own.

Tie every title to actual roles and responsibilities. Reserve senior titles for when the pay grade and scope truly match.

The COO's job is to cover the CEO's gaps — not to hold a prestigious title.

What an operations person actually does

• Takes tasks off the CEO's plate that the CEO is poor at, dislikes, or shouldn't own
• The right title depends on scope: could be operations manager, VP Ops, GM, or COO
• Do not assign a title until roles and responsibilities justify it

Title inflation and why it matters

• C-suite titles were once reserved for large companies; small companies rarely had VP-level roles
• Giving titles freely creates salary creep — compensation expectations rise with the title
• Inflated titles remove the career milestone employees could work toward
• Example: 1-800-GOT-JUNK had six VPs with no direct reports — classic title inflation

Director vs. C-suite in a small business

• No meaningful skills difference between the two levels in small companies
• The distinction is whether the scope, headcount, and pay grade warrant the title
• Pull back C-suite titles until the company and role genuinely support them

Pay grades without title changes

• Use three to four levels within the same title (e.g. Marketing Manager I, II, III)
• Each level reflects reduced need for support and greater skill or responsibility
• Employees advance in pay without demanding a new title
• College Pro Painters example: District Manager → Senior District Manager → Business Manager — same GM function, escalating scope and P&L ownership

Revenue over cost-cutting

• In uncertain markets, focus on gross margin growth and revenue, not cost reduction
• Every business problem is solvable with sufficient revenue
• Where focus goes, energy flows

Vivid vision for alignment

• Vision statements fail because they don't describe how the company operates day to day
• A vivid vision is a 4–5 page document describing what the business looks like, acts like, and feels like at a future date
• Share it with employees, customers, and suppliers so everyone reads the CEO's mind
• Each sentence is a future state to drive toward

Multi-unit operators and division-level COOs

• If an entrepreneur runs multiple companies, each unit needs its own operations lead
• Separate operating models, plans, and vivid visions per business unit
• One person cannot run multiple units effectively without dedicated operational ownership

Books recommended for startup COOs

• Traction (EOS) — practical systems for startups
• Double Double (Cameron Herold) — chapters 1, 2, 4, 6, 12 especially
• The E-Myth (Michael Gerber) — enduring entrepreneurial lessons
• The Hard Thing About Hard Things (Ben Horowitz)
• Insanely Simple — simplicity principles drawn from Apple

Showing appreciation to clients and staff

• Follow systems from Giftology (John Ruhlin) — personalised, high-quality gifts
• Custom engraved items (e.g. chef's knives) for podcast guests and members
• Know favourite drinks and snacks in advance; have them ready without being asked