What a real COO does and how to find one

Executive overview

Most companies calling someone a COO have hired a director with an inflated title. Title inflation since the mid-1990s has made C-level labels meaningless at small companies. A true COO arrives knowing what needs to be done — without being told — and shows the CEO what the next one to two years require.

A real COO tells the CEO what has to happen; a director waits to be told.

The three tiers: director, VP, and C-level

• Director: you tell them what to do
• VP: you make decisions together
• C-level: they show you what needs to happen to reach your vision
• True C-level compensation: $250k–$350k minimum
• C-level indicators: strategic autonomy, P&L responsibility, budget accountability, brings their own network of partners and talent

What makes a COO fit

• They must be strong where the CEO is weak, and want to work on what the CEO doesn't
• Neither role should cross into the other's swim lane
• COO type varies: outward-facing (biz dev, PR, sales) vs. inward-facing (engineering, operations, strategy)
• Company stage matters: an entrepreneurial COO fits early-stage; a corporate, methodical one fits scale
• Example: two different COOs served the same CEO at 1-800-GOT-JUNK — one built the franchise to $100M, the other took it to $1B

How to find one

• Know yourself first — you can only describe the right COO once you understand your own strengths and gaps
• Strong second-in-commands are never on the job market; they have to be poached
• The approach: open the door to a conversation, then let your culture and vision pull them in
• Retention: make them feel more valued than they would anywhere else — security and belonging keep great operators in place