How to be a Truly Excellent SMB COO

When I was promoted to Interim COO at a previous employer, I thought I had it in the bag. I’d worked closely with the former COO for several years by that point. I intimately knew what their day looked like and what projects they took on. I thought I could step into the role seamlessly and save the day when they stepped down. Spoiler alert: I was wrong.

The moment I slid into that (hypothetical) big office chair, everything went sideways. My vision of an organized, well-oiled machine quickly collided with the reality of endless client meetings, urgent emails, and the constant hum of chaos that seemed to define daily operations. I felt like I had been handed the keys to a Ferrari, only to realize I didn’t even know how to drive.

What I discovered in those early days was that being a COO is about so much more than having a firm grasp on numbers or a talent for strategic planning. It’s a high-wire act of balancing immediate needs with long-term goals, fostering communication across departments, keeping the team motivated and engaged, and, perhaps most importantly, shifting not only my view but also my expectations. 

As I navigated this uncharted territory, I began to understand the nuances of the role—the importance of being both a visionary and a firefighter, the need for data-driven decision-making, and the art of managing a diverse team of personalities. It wasn’t just about having a plan; it was about being adaptable, empathetic, and, occasionally, a little bit humorous. After all, if you can’t laugh at the chaos, you might just end up crying.

In reflecting on my own journey, I’ve come to appreciate the true essence of what makes an exceptional COO—especially within the realm of small to medium-sized businesses. Let’s dive into the key qualities and strategies that not only keep the engine running but also transform it into a finely tuned machine.

1. The Balancing Act: Strategic Vision vs. Daily Operations

As I settled into my role as Interim COO, one of the first lessons I learned was that the job is fundamentally a balancing act—and it ultimately feels like a daily high-wire act. On one side of the stage, you have the lofty strategic vision: the grand plans that keep you up at night, filled with dreams of innovation and growth. On the other side lies the chaotic reality of daily operations, where fire drills are more common than planning sessions, and every email could be a new crisis waiting to unfold.

I had come from a Director of Operations position, where my entire job was making sure that things ran smoothly, without friction, often rolling up my sleeves and working alongside my staff. But that position often lacks strategic vision. You simply don’t need it when your sole task is making sure the departments run like butter. 

Navigating this high-wire act is no easy feat. In a small to medium-sized business, the stakes are high, and resources are often limited. Unlike large companies where the COO might have the luxury of leading teams, in SMBs, manpower is scarce and you’re more likely to have to tough it out in the trenches. The pressure to deliver results can feel like a constant drumbeat, pushing you to focus on immediate operational needs while simultaneously trying to maintain a vision for the future. It’s a delicate dance, and one misstep can lead to a spectacular fall—preferably not one that ends with you in an HR meeting discussing “office morale.”

Let’s consider the example of strategic planning. When I was tasked with developing a three-year growth strategy, I had so many ideas. I envisioned a detailed roadmap that would guide our company toward increased market share and better operational efficiency. I gathered my team, brainstorming ideas and initiatives. We discussed ambitious goals and how we would revolutionize our processes. I was doing it, and it felt great. 

However, as I dove deeper into the execution phase, I found myself knee-deep in the day-to-day challenges that had somehow slipped through the cracks during our strategic discussions. I realized that while I was busy plotting our course to success, my team was struggling with a slew of immediate issues—overdue invoices, client complaints, and a project timeline that seemed to be on a permanent vacation. Suddenly, my high-level vision felt disconnected from the reality of what was happening in the trenches.

What I learned from that experience is that successful COOs have to work in two timelines- the one that’s happening now, and the one that’s going to happen in the future. Losing sight of one is disastrous. 

Ideally, you’ll be working with a CEO who has their eye on the future, but sometimes, especially in SMBs, the CEO is tasked with other equally important jobs like maintaining important client relationships or fundraising. They can’t afford to drop those balls. Instead, that all-important future view will fall on the Chief Operations Officer, and as COO you have to pivot between these two timelines on a motherf*cking dime. You need to dive into the nitty-gritty of daily operations to address urgent needs while keeping an eye on the horizon to ensure your organization is moving in the right direction. This isn’t just about wearing multiple hats; it’s about finding a hat that doesn’t fall off every time you bend down to pick up the latest crisis.

To truly be effective, a COO must constantly oscillate between these two realities. It’s not just about crafting a strategic vision; it’s also about understanding the operational realities that your team faces every day. This means being present in those urgent meetings, listening to concerns, and adapting your strategies based on real-world feedback. Active listening is a surprisingly important skill to have in this role. During my time as Director of Operations, I liked to say that I can’t fix it if I don’t know how it works and this is doubly true for the role of COO. You can’t make a true roadmap for success if you don’t know how your staff do their jobs. 

A key strategy I found helpful was to prioritize regular check-ins with my teams. These informal sessions allowed us to discuss ongoing projects, share progress updates, and identify any roadblocks that might be hindering our collective success. They were a mix of strategy and troubleshooting—like a group therapy session where everyone is trying to keep it together while discussing the latest round of unexpected crises. By fostering a culture of transparency and collaboration, I was able to create an environment where strategic vision and daily operations could coexist harmoniously, without turning into an episode of a bad sitcom.

2. Communication: The Heart of the Operation

Imagine trying to assemble a piece of furniture, but each step of the directions is in a different language; that’s the kind of chaos you can expect without a solid communication strategy in place. In the world of operations, communication is IMPORTANT. As COO, the quickest lesson I ever learned was that fostering effective communication across departments is crucial. Before I stepped into the role, I thought I understood what clear communication meant. However, I quickly discovered that I was wrong. Way, way, wrong. 

I learned this lesson the hard way when I assumed my vision for a new initiative was crystal clear to everyone involved. When I enthusiastically presented the plan to the team, I watched as puzzled expressions washed over their faces. I had forgotten one crucial detail: communication is a two-way street. It’s not enough to share your vision; you also need to invite questions, concerns, and suggestions. This is especially true in SMBs, where every team member’s input can significantly impact the overall operation.

Let’s take a look at the typical day in the life of a COO, which often involves meetings upon meetings. You have your strategic planning sessions, team check-ins, client calls, and, of course, the all-important crisis management discussions. Each of these requires not just participation but active listening and feedback. The key is to foster an environment where team members feel comfortable expressing their thoughts and concerns.

But it doesn’t stop there. In my big initiative flop, I’d forgotten that part of my responsibility was to communicate the “why” behind my decisions. Understanding the reasoning behind initiatives and changes helps the team feel invested and cohesive. This transparency not only builds trust but also ensures that the team is aligned with the company’s direction. After all, it’s much easier to rally the troops when they understand where we’re headed and why.

To build a culture of open communication, I initiated regular feedback loops— more than just All Hands meetings, these were full sessions where I made a point to answer any and all questions the staff had with complete, total honesty. During these sessions, we could discuss ongoing projects, share updates, and, most importantly, address any roadblocks. It was a way to ensure that everyone was not only informed but also engaged in the process. In those moments, we shared laughter, frustrations, and, occasionally, a collective sigh of relief. These check-ins transformed from obligatory meetings into a space where ideas flowed freely, and fellowship flourished.

A lot of people will want to leverage technology to enhance communication efforts. And I get it. From collaborative tools to project management software, there are countless resources available to keep teams connected, even in the most hectic times. However, it’s crucial to remember that technology should complement, not replace, human interaction. There’s nothing quite like face-to-face (screen-to-screen?) conversations to build relationships and foster a sense of belonging among team members.

Ultimately, as a COO, you are the bridge between departments, the translator of goals, and the facilitator of collaboration. You don’t need to be loved by everyone, but you need to embody the spirit of openness, encouraging dialogue while also being willing to adapt your communication style to suit different audiences. Whether it’s crafting a compelling presentation for the board or sending a quick email or Loom to the team about a last-minute change, your ability to communicate effectively can make all the difference.

3. Data-Driven Decision Making

In the age of information, a COO's relationship with data is like that of a devoted partner: it’s essential for survival, yet it can feel overwhelmingly complicated at times. The reality is that every decision you make as a Chief Operating Officer should be backed by solid data—not just because it’s trendy, but because it’s the best way to steer the ship in the right direction. You wouldn’t set sail on a voyage without a map (or at least a solid GPS), right?

But here’s where things get murky: the difference between being “data-driven” and merely “data-drenched.” Too often, COOs find themselves swimming in a sea of metrics and analytics, buried under an avalanche of spreadsheets. Just because you can measure everything doesn’t mean you should. It’s vital to sift through the noise and identify the key performance indicators that genuinely drive your business forward.

One memorable lesson I learned during my time as COO was the importance of pinpointing what truly matters. Early on, I found myself up to my elbows in reports that tracked everything from project timelines to employee satisfaction rates. I was like a kid in a candy store, overwhelmed by choices. But as I waded through the data, I realized that not all metrics are created equal. Focusing on the right data—like revenue growth, customer acquisition costs, and operational efficiency—helped us paint a clearer picture of our progress.

To drive home this point, let’s consider the emergence of buzzwords that tend to crop up in the world of data: “synergy,” “leverage,” and “paradigm shift,” to name a few. While they can sound impressive, they can also create a haze of confusion. As COOs, it’s essential to strip away the jargon and communicate the data’s implications in straightforward terms. Otherwise, you risk being that person at the party who goes on and on about a movie no one else has seen—everyone smiles politely, but deep down, they’re just looking for the exit.

Engaging with data is also about fostering a culture of informed decision-making within your team. Encourage your staff to embrace data-driven insights rather than feeling daunted by them. This means creating a safe space for questions and discussions around the numbers, where team members can explore what the data means for their projects and how it can be applied moving forward. If you can transform your team into data enthusiasts, you’ll have a more cohesive unit that makes decisions based on facts rather than gut feelings.

But let’s be real: relying solely on data can lead to paralysis by analysis. There’s a fine line between making informed decisions and getting bogged down in endless deliberation. Sometimes, you just need to trust your instincts and take action—data or not. It’s a bit like cooking; if you spend too much time worrying about every ingredient, you might end up burning the whole dish. So, while you should certainly respect the numbers, don’t let them dictate every move you make.

4. Embracing Change and Innovation

In the fast-paced world of SMBs, the only constant is change. As a COO, if you’re not comfortable with that fact, you might as well put on a blindfold and jump into a shark tank—blind faith isn’t going to save you. Change isn’t just inevitable; it’s the driving force behind innovation. But let’s face it: embracing change can feel a bit like trying to hug a cactus. You know you need to do it, but you also have a nagging fear of getting poked.

The challenge for COOs is to lead the charge into the unknown while keeping the team steady and motivated. It’s not enough to throw a few buzzwords around—terms like “agility,” “disruption,” and “pivot” might get you a nod of approval in a board meeting, but they don’t help much when the rubber meets the road. Your team needs to understand not just what the changes are, but why they matter. They need a guide, not just a cheerleader waving pom-poms on the sidelines.

One of the first things I learned in my role was the importance of fostering a culture that welcomes change rather than fearing it. This means creating an environment where experimentation is encouraged, and failure is seen as a stepping stone to success. Remember, every great innovation started as a wild idea that probably seemed ridiculous at the time. If your team feels safe to share their off-the-wall thoughts—like using drones to deliver coffee during meetings or initiating a “bring your pet to work” day—you might just stumble upon the next big breakthrough.

Take it from me: navigating change is a rollercoaster ride. There are thrilling highs and gut-wrenching lows. One moment, you’re celebrating the successful rollout of a new process that seems destined for greatness; the next, you’re facing a barrage of feedback that suggests you’ve inadvertently created a new level of chaos. It’s like standing on a merry-go-round—while everyone else seems to be enjoying the ride, you’re just trying not to fall off.

The key to embracing change lies in maintaining a growth mindset, both for yourself and your team. Encourage your colleagues to approach challenges with curiosity rather than resistance. When a new initiative rolls out, frame it as an adventure rather than a burden. This could be as simple as changing the language around your strategy meetings: instead of “We have to adapt,” try “We get to innovate!” You might get some eye rolls, but you may also spark some enthusiasm.

Additionally, leveraging insights from industry leaders can be a game-changer. Successful COOs understand that agility and transformation go hand in hand. They stay ahead of trends and use data to identify opportunities for innovation. But here’s a pro tip: don’t just cherry-pick the success stories. Embrace the flops too. After all, every “overnight success” is built on a mountain of missteps. When your team sees you candidly discussing what went wrong, they’ll feel more comfortable sharing their own experiences—and maybe even laugh about them later over a cup of coffee.

5. Building a Strong Team

When it comes to being an exceptional COO, one of your most critical responsibilities is building a strong, cohesive team. It’s not just about assembling a group of competent individuals; it’s about creating a harmonious ensemble that can play together like a well-rehearsed symphony—or at least a decent garage band that can hit the right notes most of the time. After all, a strong team is the backbone of any successful operation, especially in the unpredictable landscape of small to medium-sized businesses.

First things first: let’s address the elephant in the room. Finding the right people can often feel like searching for a needle in a haystack, but here’s the kicker—the haystack is on fire. In SMBs, where resources are often tight and the stakes are high, the pressure to hire the perfect candidate can lead to frantic decision-making. You might find yourself asking, “Do I really need another team member, or can I just train my pet goldfish to do data entry?” Spoiler alert: goldfish aren’t great at spreadsheets.

To build a robust team, you must start with a clear understanding of the skills and traits necessary for success. This involves looking beyond just the technical qualifications on a resume and seeking out individuals who align with your company culture. You’re not just hiring employees; you’re building a community. So, when interviewing candidates, focus on their soft skills—things like adaptability, collaboration, and a sense of humor (because who wouldn’t want to work with someone who can make you laugh in the middle of a crisis?).

I think it’s worth mentioning that when building a team, especially in the SMB market, look internally as well as externally. I know, I know. I just said that a COO probably shouldn’t be an internal hire, but hear me out. In SMBs, or even just in rapidly growing startups, roles change over time and sometimes the person you hired for role X isn’t doing X anymore- they’re doing Y. And maybe they’re not great at Y. Good teams are about getting the right butts in the right seats, and, in my experience, sometimes it just requires a seat shift to get the right butt where it belongs. 

Once you’ve managed to assemble your dream team, the next step is fostering a culture of mentorship and development. This isn’t just about training programs and performance reviews; it’s about creating an environment where team members feel supported in their growth. Think of it as nurturing a garden—water the flowers, pull out the weeds, and watch everyone bloom. Regular check-ins and feedback sessions can help your team stay aligned and engaged, ensuring they know you’re invested in their success.

But here’s where it gets tricky: as the COO, you also need to make tough decisions about team dynamics. Sometimes, despite your best efforts, you’ll find that not every hire is a perfect fit. Addressing performance issues or toxic behavior can be uncomfortable, but it’s necessary for the health of the organization. Remember, it’s not about playing the villain; it’s about protecting the team and the overall vision. Think of it as being the stern but fair coach who knows that sometimes you need to bench a player to keep the game going.

Another crucial aspect of team building is promoting open communication. Foster an environment where ideas flow freely, and team members feel comfortable sharing their thoughts—no matter how off-the-wall they may seem. You want to create a culture where feedback is constructive, and everyone knows they can speak up without fear of retribution. Encourage brainstorming sessions where wild ideas can take root because sometimes the craziest suggestions can lead to the most innovative solutions.

And don’t forget to celebrate your team’s successes, both big and small. Whether it’s a major project launch or simply hitting a milestone, recognizing achievements fosters camaraderie and boosts morale. A little appreciation can go a long way, transforming a workplace into a thriving community. 

6. Cultivating a Positive Company Culture

As a COO, one of your superpowers needs to be shaping the company culture, that elusive quality that can make or break your team’s spirit. You’re not just the operational wizard behind the curtain; you’re the maestro of a vibrant workplace environment. If your company culture resembles a stale office with fluorescent lights buzzing overhead, you’re in for a bumpy ride.

Creating a positive culture isn’t just a nice-to-have; it’s essential for attracting and retaining top talent. When people feel valued and connected to their work, they’re more engaged, productive, and likely to stick around. Think of it this way: you’re not just building a team; you’re nurturing a community. This starts with clearly defining your core values—those guiding principles that reflect who you are as an organization. Throwing some posters on the wall with inspirational quotes isn’t going to cut it. Lead by example. Share your own experiences—both the triumphs and the blunders. When team members see you being vulnerable and transparent, they’re more likely to open up in return. This approach creates a culture where feedback flows both ways, and everyone feels empowered to contribute to the conversation.

Start by integrating your values into the fabric of daily operations. If collaboration is one of your pillars, encourage cross-functional projects that bring different departments together. Create opportunities for team members to connect outside of their usual roles. Whether it’s through hackathons, brainstorming sessions, or even casual coffee chats, breaking down silos fosters a sense of unity and shared purpose.

Keep in mind that a positive culture doesn’t just happen overnight. It’s an ongoing effort that requires consistency and intention. As the COO, you play a vital role in modeling the behavior you want to see. Celebrate diversity, promote inclusivity, and actively seek input from all team members. Create an environment where everyone feels safe to express themselves, and you lay the groundwork for a thriving culture that attracts top talent and drives results.

7. Results Orientation: Driving Performance and Accountability

In the rollercoaster world of SMBs, results orientation is the name of the game. As a COO, your role isn’t just to oversee operations; it’s to be the chief results officer, the champion of accountability, and the keeper of the keys to success. But driving performance is easier said than done. An important lesson I learned in my role was that while setting ambitious goals is all well and good, holding people accountable for meeting those goals is where the magic—or mayhem—happens. You could write a lengthy manifesto on the importance of accountability, but if no one actually follows through… well, you’ve got a problem.

So how do you instill a culture of accountability without resorting to micromanagement? Start by setting clear expectations. Define what success looks like for every team member and make sure they understand their roles in achieving those outcomes. This isn’t just about throwing numbers at people; it’s about connecting those numbers to a larger purpose. For example, instead of saying, “We need to increase sales by 20%,” explain how hitting that target impacts the company’s growth and, by extension, everyone’s job security (and coffee supply).

Once expectations are set, it’s essential to establish measurable outcomes. Metrics should be your best friend, and focus on the KPIs that truly matter. This means selecting a handful of metrics that reflect your organization’s goals and sticking to them like glue. Remember, too much data can lead to analysis paralysis, and we all know how productive that is.

In addition to metrics, regular check-ins are crucial. Schedule recurring meetings to review progress, discuss roadblocks, and adjust course if needed. These sessions should be constructive, not punitive. After all, nobody enjoys the proverbial “performance review” that feels more like a trip to the principal’s office.

Accountability also extends beyond individual performance; it’s about fostering a team-oriented mindset. Encourage collaboration and camaraderie by making it clear that everyone’s success contributes to the greater good. When the team celebrates a milestone together, they build a collective sense of responsibility. Just remember: if one person drops the ball, everyone should be prepared to pick it up, not roll their eyes and mutter under their breath.

These discussions can be uncomfortable, but confronting issues head-on is necessary for growth. When a team member isn’t meeting expectations, address it directly but with empathy. Use specific examples and focus on improvement, not punishment. Your goal is to empower, not to discourage. 

It’s important to recognize that accountability isn’t a one-and-done deal. It’s an ongoing process that requires continuous reinforcement. Celebrate successes, however small, to foster a culture where people feel proud of their contributions. Remember, accountability is a two-way street. As a COO, you must also hold yourself accountable to your team and your organization. Show them that you’re just as committed to achieving results as you expect them to be.

8. Two Sides of the Same Coin: The COO’s Relationship to the CEO

I think most people think of C-Suite positions as siloed, but that couldn’t be farther from the truth. That might be, perhaps, the most important lesson I learned during my time as COO. If the C-Suite starts to think of themselves as independent operators, then company death isn’t too far off. I think a better way to think of them is like a hydra, one creature with multiple heads, because the CEO, COO, CFO, CMO, and what have you, are all part of the same beast. They’re all doing the same job: running the company. But if one head starts to wander in the opposite direction from others, then that beast is going to tear itself apart and it’s gonna die. 

In SMBs, the COO’s relationship to the CEO is particularly important, because the organization is likely not big enough for the other C names. In this scenario, the COO is often the first major hire after the company hits a large enough milestone and their job is ultimately to take the work of running the company off of the CEO’s plate. The theory about working in multiple timelines comes back into play again- with the hire of a COO, the CEO can concentrate on the future timeline, setting up funding, investors, or initiatives, and the COO is working in the now timeline, making sure the company is running. 

There needs to be a lot of trust in this relationship. The CEO, who likely has previously been handling all of the important day-to-day stuff, needs to trust that the COO can pick up where they’re leaving off. Most companies will fill this hire from within, but I think that’s a trap. Yes, you’ll trust those employees more initially, but there’s no guarantee that they’re going to be suited for the job. I mean, take me for example, when I took over the COO job, I was pretty horrible in the first three months. But luckily for me a) I had a CEO who trusted me implicitly and b) I was actually suited for the position. Eventually, I got my feet under me and proved to be pretty darn good at the job, if I do say so myself. 

Splitting the CEO’s duties at the intersection of future and now isn’t easy for the CEO. It probably hurts having to learn to give up control like that and that’s why trust between these two roles is paramount. And that level of trust needs to be quad-, hex-, octupled if the company is a not-for-profit and a board is involved. Suddenly, a lot more people need to have a lot of confidence in this one position. The thing you need to understand about working in this position is that kind of trust doesn’t happen overnight. It takes months of proven reliability to earn it. In the case of new hires, hiring you as COO was a leap of faith and now you need to work on building that bridge, brick by brick. 

Lessons from the Trenches

Looking back at my time as COO, I can’t help but groan with embarrassment at the myriad of missteps I made along the way. I went into the role with the confidence of a cat ready to conquer the world, only to realize I was more like a kitten lost in a cardboard box. Each day was an adventure filled with learning experiences that left me both humbled and a bit more seasoned.

I’ve learned that being a COO isn’t just about donning a shiny title and reveling in the respect of my peers. It’s about navigating the delightful chaos of daily operations while keeping one eye on the future and the other on the steaming cup of coffee I often knocked over during meetings. The reality is that it’s easy to get caught up in the “big picture” while the “little fires” of daily crises are raging all around you. If you ignore those fires, you might end up hosting an impromptu bonfire—and not the fun kind.

Mistakes? Oh, I’ve had my fair share. From sending out emails filled with typos that made me question my literacy to confidently declaring a new initiative without considering whether my team had the bandwidth to actually pull it off, I've done it all. But here's the twist: each blunder taught me something valuable. I learned to embrace vulnerability, to communicate more effectively, and to view every challenge as a chance to grow.

I urge you to dive into your COO journey with a blend of ambition and humility. Don’t shy away from the inevitable chaos; instead, lean into it. If you can balance the demands of immediate operations with a dash of strategic foresight and a good dose of humor, you might just find that you come away not only as a better executive but also as a person who can genuinely appreciate the beautiful mess that is business.

And remember, it’s perfectly okay to laugh at yourself along the way—just try not to trip over that coffee cup while doing so.