The Most Important Management Position You Are Probably Missing When Evaluating A Company To Invest In

In today’s landscape, nothing is sexier than entrepreneurship.

CEO’s have become near mythical figures in society with the idea that building a business and working for yourself is king. Rarely however is this true, most people who build businesses don’t work for themselves, they have a team and clients as well (hopefully).

Meanwhile many #2’s & #3’s in companies don’t get nearly the respect and accolades they deserve.

When researching a potential investment opportunity always have a look at the team running the deal. The initial thought is to place the CEO above all else, but often times the CEO may be the CEO of multiple companies and isn’t as dedicated to the success of the business as the #2 or #3. This isn’t always the case but it’s something to think about.

Many people flaunt themselves as entrepreneurs, but haven’t built anything. (aside from maybe a course about that thing they haven’t built, which kind of means they’ve built something, but it’s really a chicken and the egg situation)


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The COO is generally the most overlooked and undervalued position when assessing the longevity of a company because it’s often the COO calling the shots on front line issues while the CEO is making bigger and more abstract plans which can be detached from what’s happening at the core of the business.



As companies scale, it becomes increasingly important that they’re able to stay focused on achieving all short- and long-term business goals. Not only does this help to enhance the overall business reputation, but a track record of success motivates all departments to maintain higher standards when managing day-to-day operations.

Managing these expectations across the organization, however, can be a challenge. This is especially the case as CEOs typically put their focus on developing higher-level business strategies rather than concentrating on how they’re implemented.

This is where the relevance and importance of a Chief Operating Officer (COO) come into play.

COOs play a vital role in the operational success of a company while complementing the strengths of its senior leadership. The role of a COO can impact a company in a variety of ways. Here are four benefits that organizations can expect when they involve a Chief Operating Officer.

As company leadership agrees on new strategic directions and core values to support, COOs are there to help ensure the company adheres to them. You should never understate the value of having a resource to manage these standards. Chief Operating Officers play an integral part in keeping the company aligned. They do this by ensuring all departmental goals get communicated effectively, and they hold staff members accountable for achieving them.

Identification of Key Company Issues and Needed Changes

Companies should never be afraid to make mistakes – as long as they learn from them. However, without a resource in place to identify these critical business issues and push for change, organizations can never develop past their inadequacies. COOs work to address operational inefficiencies as they arise and can aggregate and categorize any needed changes.

As mediators, they can also curb negative emotions that arise among staff members when addressing departmental issues and work towards non-controversial resolutions.

Deeply ingrained in the company’s culture, COOs play a key role in helping businesses acquire new qualified talent. Because Chief Operating Officers can only be as effective as their teams, they take an active interest in the professional development of department heads and their staff members.

Since the COO has a unique insight into the organizations’ immediate needs, it also involves staff in the design of employee training programs to help maximize the potential of new job candidates.


Although COOs stay involved when trying to execute higher-level business strategies, this doesn’t mean they aren’t connected to their development. More than just advisory parties, Chief Operating Officers are well-equipped to be decision makers when deciding on new strategic visions, budget plans, and other important higher-level directions.

As key business leaders in all corporate planning efforts, COOs help to shape the future of the company while prioritizing the immediate needs of the organization.

Chief Operating Officers continue to play an important role in the overall sustainability of an organization. By positively impacting businesses in several ways, COOs are the glue that holds everything together, giving companies the best chance for success now and in the future.

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