When to Hire a COO vs. Operations Manager

BySally Siyakatshana
When to Hire a COO vs. Operations Manager
Spread the love

You are the bottleneck.

You know it. Your team knows it. You are trying to be the CEO, the head of sales, and the person who remembers to order more printer paper. You are working 60 hours a week, but the important stuff—strategy, vision, growth—keeps getting pushed to “next week.”

You need help running the day-to-day. You need someone to take the chaos and turn it into order.

But who do you hire?

Do you need an Operations Manager to keep the trains running on time? Or do you need a Chief Operating Officer (COO) to help you build a bigger railroad?

It is one of the most common—and expensive—hiring mistakes I see. Hire a COO too early, and you burn cash on a strategist when you really needed a tactician. Hire an Ops Manager too late, and you end up micromanaging a junior employee who can’t handle the complexity of your growth.

Let’s break down the real difference between these two roles so you can hire the right right-hand person.

The “Altitude” Difference

The easiest way to understand the difference is altitude.

  • Operations Manager (10,000 feet): They execute the plan. They manage the team, the processes, and the daily workflow. Their job is efficiency. They answer the question: “How do we do this better/faster/cheaper?”
  • COO (30,000 feet): They help create the plan. They look at the business model, the market, and the future. Their job is effectiveness. They answer the question: “Where are we going, and how do we get there?”

If you need someone to fix your inventory system, hire an Ops Manager. If you need someone to figure out if you should expand to Europe or launch a new product line, hire a COO.

Deep Dive: The Operations Manager

This is usually the first “operational” hire for a small business.

The Role: They are the “Chief of Staff” for the daily grind. They handle HR issues, manage vendors, oversee project delivery, and ensure SOPs are followed. They live in the weeds so you don’t have to.

You need an Ops Manager if:

  • You are still heavily involved in sales or product, and you just need the “back office” noise to stop.
  • You have a process, but nobody is following it.
  • You are generating under $3M-$5M in revenue.
  • You are tired of being the person everyone asks, “Where is the file?” or “Who is handling the client kickoff?”

The Cost: Typically $60k – $120k/year depending on location and experience.

Deep Dive: The Chief Operating Officer (COO)

This is a true executive partner. A COO doesn’t just take orders; they challenge you. They are often the “Integrator” to your “Visionary.”

The Role: They translate your vision into a strategic roadmap. They align the leadership team (Marketing, Sales, Finance) so everyone is rowing in the same direction. They fix structural issues in the business model.

You need a COO if:

  • You have multiple departments with department heads who aren’t collaborating well.
  • You want to focus exclusively on vision/product/sales and hand over the entire “running of the company” to someone else.
  • You are preparing for a major event: an acquisition, a merger, or a massive funding round.
  • You have complex operations (e.g., international supply chains, heavy regulation) that require high-level expertise.

The Cost: Typically $150k – $300k+ (plus equity).

How to Decide (The “Letting Go” Test)

The biggest factor isn’t your revenue; it is your ego.

Are you ready to let someone else make big decisions?

If you hire a COO, you have to let them change things. You have to let them tell you “no.” If you aren’t ready for that—if you still want to approve every hire and sign every check—save your money. Hire an Operations Manager. They will execute your will without challenging your authority.

But if you are truly ready to step up and be the CEO, a COO can be the catalyst that doubles your business.

Actionable Tips for Hiring

1. Don’t Hire for the Title Don’t post a job for a “COO” just because it sounds cool. Be honest about the work. If the job is 90% spreadsheets and scheduling, call it an Operations Manager. You will attract the right candidates and save money.

2. Look for Complementary Skills If you are a chaotic creative, hire someone organized and disciplined. If you are an introverted product genius, hire someone with high EQ and leadership skills. Don’t hire a mini-me.

3. Test Drive the Relationship This is a marriage. Before you offer a C-level role, try a 90-day consulting contract or a “Fractional COO” arrangement. See if you actually like working together.

The Bottom Line

Hiring operational help is the best investment you can make. It buys back your time.

  • Start with an Operations Manager to stabilize the ship. Get the processes documented. Get the daily fires put out.
  • Graduate to a COO when you are ready to build a fleet of ships.

Look at your calendar. Look at your stress level. And make the hire that solves the problem you have today.Ready to onboard your new leader? Once you hire them, you need to integrate them fast. Use our 90-day sprint planning guide to set clear goals for their first quarter.

Similar Posts