CEO / COO Dynamics: Clear Swim Lanes Reinforced
Without clearly defined and delineated responsibilities between CEO and COO your staff will choose who to go to optimize the response to their preference. It’ll be a game of whack-a-mole. It’s essential to be clear about what the delineation of responsibility is and equally important, explicitly communicate that delineation of responsibility to the rest of the executive team. As an incoming COO, requiring this is the most important thing you can do to set yourself and the organization up for success.
Here’s how you can do it:
Map organization and related areas of responsibility. It is important to be explicit about each part of the organization and who it will report to. Don’t leave room for interpretation.
Account for key performance indicators (KPIs) and objective and key results (OKRs). Be equally explicit in outlining responsibility for key performance indicators. It’s important to make sure that the responsible party can truly effect that metric given what was outlined in the areas of responsibility example. For example, if a COO is managing the G&A functions, it’s probably not appropriate to have them own the overall revenue goal.
Explicitly tell the rest of the executive team. Being explicit is key here as it leaves no room interpretation.
Build a transition plan to reinforce the above. This should include transitions reports, meetings, decision making, and responsibility. The COO needs to start doing these things and the CEO needs to stop.
Reinforce the above. Have a simple, but firm reply if someone goes outside of the areas of responsibility: “Please direct this one to the COO as it’s her area of responsibility”
Done well, the new operating rhythm becomes natural quickly. Done poorly it leaves room for ambiguity and politics -- the gains that were expected in with the COO will actually be a tax on the system as executives plot and plan for their outcomes.