The position of COO is not needed at all enterprises. If the company was formed very recently and has just entered the market, then it has very few processes.
It makes sense to hire a separate specialist for this position only if the company was formed thanks to seed financing. High-risk investments in a new business require regular audits and strict reporting. The director of operations will cope with this many times more successfully than an ordinary employee or manager. The help of a qualified specialist is necessary, since all processes in the enterprise must be carefully built and controlled. The lack of audits and incompetent management will lead the company to collapse due to a large volume of unresolved issues and loss of investor confidence.
Who doesn't need a COO
If the company's CEO feels prepared homeowner database in these matters and has time to solve current problems, he can refuse the CEO. Usually in such a situation, half of the tasks are given under the control of top managers, and the other part goes to CEO specialists. This scheme works until the company decides to expand. Sales growth, the emergence of new products, the enlargement of the export network and other similar activities will lead to a logical outcome - managers and the CEO department will not have enough resources for the increased volume of tasks.
In addition to the above cases, the assistance of the COO is not needed when it comes to a small company engaged in a specific activity. Typically, such companies have a small staff and sell products of a diverse format. These are all kinds of agencies that provide legal or accounting services to individuals, real estate rental companies, SMM agencies and similar companies. These organizations have a vertical organizational structure, which implies a certain hierarchy, when lower levels of management are subordinate to higher ones. Since expansion depends only on an increase in sales, they do not really need the services of a COO.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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