Today, the role of the Chief Operating Officer is completely different compared to the fast-paced business nature. The COO is no more than a classic operations manager but rather a modern one, who should possess a package of broad skills in order to navigate this challenging course and lead an organization towards success.
This article will scrutinize the most important skills that can provide an edge to every modern-day COO.
Strategic Thinking
Strategic thinking is perhaps the most important skill required for a COO. It is at such a time that long term strategies are developed and implemented by businesses in response to accelerating changes stemming from technology and market dynamics. The COO needs to look at data in order to understand trends and predict future challenges.
Deloitte has come up with findings, which include the fact that 86% of executives say strategic thinking is required for leadership positions. This will enable the COOs to set operational goals that are in consonance with the vision of the company while preventing the utilization of resources ineffectively.
Leadership and Team Management
The second foundational element of a successful COO is leadership. Leadership involves the ability to inspire, rather than merely manage, teams. A COO should be a great work culture builder who creates collaboration and innovation in the work.
According to Gallup research, organizations with engaged employees outperform their own companies by 147% on earnings per share. By focusing on team management and employee engagement, COOs can boost the productivity and morale of their organizations as well.
Financial Acumen
Any COO should know finance principles. Most of the budget-related responsibilities, financial report analysis, and bottom line-affecting decisions fall under the expertise of a COO. In this regard, sound knowledge of finance will help COOs make prudent decisions about resource and investment distribution.
According to the Corporate Finance Institute, 70% of executives believe that financial literacy is a very valuable attribute of good leadership. A strong financial background of a COO can increase profitability while maintaining long-term growth.
Change Agility
The organizations are nowadays constantly changing due to technological changes, the influence of market forces, and changes in consumer preferences. Hence, adaptability is one key characteristic of a COO at the moment. Those companies that adapt quickly to new information or something that is unpredictable will be ahead of their competitors.
A McKinsey report shows companies with flexible leaders outperform by 2.5 times when there is disruption. Embracing change and the culture of flexibility can easily make organizations take success in uncertain circumstances.
Communication Skills
Good communication skills form a very basic sense for any leader, but more so the COO since communication is diagonal between different departments and the stakeholders. Proper communication develops transparency, relating to who is doing what, why, and in what order, which is essential in making people rely on one another. This also assures that all employees are on board with the set goals and objectives.
According to Salesforce, 86% of employees and executives associate failures in the workplace to either a lack of collaboration or poor communication. A very effective COO who is wonderful with communication will then fill in the gaps between teams, so everything runs like a well-oiled machine.
Technological Knowledge
With the age of technology, a good understanding of these digital tools and platforms forms the heart of a modern COO. Knowing data analytics, project management software, or other technological solutions can facilitate very significant enhancements in operational efficiency.
According to the World Economic Forum, 94% of business leaders believe that technology will be critical for the success of their organizations in the future. A tech-savvy COO can use these tools to make processes smoother, have better decision-making, and drive innovations.
Problem-Solving Abilities
The operative COO of the day faces unrelenting daily operational issues. The speed at which a solution to a problem is found, possible solutions analyzed, and practical strategies implemented makes the difference between smooth operating structures and failed operating plans. In a report by PwC, 79% of CEOs are worried about the ability of their organization to solve complex problems efficiently. The problem-solving abilities developed allow the COOs to overcome any challenges without much excitement caused.
Customer-Oriented Orientation
These days’ competitive environment requires any business leader to pay attention to customers’ needs. As such leaders would be customer-centric, the approach will enable COOs to align an appropriate operational strategy with customer expectations for greater satisfaction and loyalty.
Conversely, according to the research conducted by Bain & Company, companies focused on experience-related customer care capture revenue growth rates 4-8% higher than their competitors in the market. Focusing on customer needs enables COOs to initiate service delivery and product offerings improvement initiatives.
Networking Skills
Networking is one of the very important factors behind the success of a COO. Relationships built among industry peers, stakeholders, and partners will open the gates to new understandings and opportunities. Leaders are able to collaborate and share knowledge between them to betterment of the organization through engaging with one another. Indeed,
LinkedIn has gathered research to show that 85% of jobs are filled via networking, not postings. Therefore, a very vital relationship between COOs and other professionals is of great value. Conclusion
The role of a Chief Operating Officer has evolved dramatically in recent times. To be successful in such a multifaceted position, a modern COO must build a broad spectrum of skills ranging from strategic thinking and leadership to financial acumen, combined with a proficiency in communication as well as technological skills; all these continue being anchored in problem-solving, giving way to a customer-centric mindset and other professional capabilities conducive to networking.
As organizations continue to navigate the ever-changing landscape – ever-evolving due to exponential growth in technology and changing market demands – these skills will help drive success in the roles. With these competencies, COOs will be able not only to thrive in their roles but also to lead their organizations toward sustainable growth and innovation for the future.
