January 2022 Issue: When and Where to Hire a COO to Serve as your Organization's Heart-When and Where to Hire a COO to Serve as your Organization's Heart by Yonhee Choi Gordon

When and Where to Hire a COO to Serve as your Organization's Heart by Yonhee Choi Gordon

Pdf Summary

Financial planning firms are experiencing rapid growth, which has increased the need for organizational structure within these firms. As firms expand their headcount to accommodate client growth, they must also consider dedicated management roles. This is where the role of a Chief Operating Officer (COO) becomes crucial.<br /><br />A COO is needed when the responsibilities of managing the business become too much for the CEO/founder to handle. The CEO may choose to focus on business development and client relationships, while the COO manages the operational part of the business. The COO acts as the "heart" of the firm, coordinating workflows and supervising the employees.<br /><br />The responsibilities of a COO include overseeing the overall operations of the firm, hiring and firing personnel, and keeping a finger on the pulse of the organization's culture. Depending on the size of the firm, there may be additional layers of managers who report to the COO. The COO also plays a key role in driving the vision and goals of the firm.<br /><br />When hiring a COO, firms have the option to look within the organization or to hire from outside. Hiring from within can be advantageous as the candidate already has knowledge of the firm's culture and can reinforce the CEO's vision. However, hiring from outside can bring fresh perspectives to the firm. The key is finding the right fit for the organization.<br /><br />It is also suggested that firms consider offering an ownership path for the COO and other integral roles at the firm. While these roles may not directly generate revenue, they are crucial to the firm's infrastructure and having a stake in the firm can strengthen individuals' sense of purpose and effectiveness.<br /><br />In conclusion, as financial planning firms continue to grow, the need for a dedicated management role like a COO becomes essential. This role is responsible for managing the operational part of the business, overseeing employees, and driving the firm's vision. Whether hiring from within or outside the organization, finding the right fit is key to the success of the firm.

Keywords

financial planning firms

rapid growth

organizational structure

Chief Operating Officer

COO

operational part

hiring from within

fresh perspectives

ownership path

firm's success