If you’re like most successful firm founders, you’re probably either a tremendous relationship manager, rainmaker and/or investment technician. And as your firm has gradually grown, you’ve been able to acquire enough business management skills to get by. But is business management truly your passion; not to mention an area where you want to devote a significant portion of your time and effort?
The unintended consequence of success in acquiring new clients and assets is the time needed to provide them with the advice and guidance they seek; all while efficiently running a business that performs the underlying technical work required. Once you reach a level of about $5MM in revenue, it’s time to earnestly consider onboarding a professional business manager for your firm. Why make the shift at this particular stage in your growth?
Defining the Chief Operating Officer (COO) Role
There are five principal functions that you’ll want to offload from your plate onto the shoulders of a capable COO: compliance, technology, operations, financial management and human capital management. In assuming primary responsibility for the day-to-day operations of your firm, this individual will ideally take the reins on:
The simple truth is that businesses are never in stasis – they’re either growing or dying. And more often than not, the teams who are truly flourishing are those who have a professional manager running the operation. So, as you think about the continued sustainability of your firm, hiring a head of operations should probably be high on your list of priorities. The ClientWise Competency Based Interviewing Guide - Chief Operating Officer (COO) can be an invaluable resource in identifying and interviewing for this critical role. Bringing the right individual on board can not only free you (and your advisor partners) up to focus on the things you do best, it can help ignite a resurgence of growth.
Coaching Questions from this article:
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