The overhead expense from hiring a COO is sometimes justifiable. And sometimes it is not.
When does the role become an excessive overhead, then?
- When the change momentum decreases: There will be a time when new thoughts, ideas and skills no longer provide an extra kick.
- When the COO has done the job and becomes dispensable: It becomes cheaper to hire in-house when the groundwork is completed.
- When your company's new reality does not match the COO's skillset: Does the role still provide enough strategic, business and employee value to justify the overhead cost?
This is why COO is inherently an interim job.
An important overhead reducing job.