Ep. 459 - The Art of Selecting a Second-in-Command that Drives Growth - Second in Command: The Chief Behind the Chief with Cameron Herold

Summary

Podcast Summary: Ep. 459 - The Art of Selecting a Second-in-Command that Drives Growth

Title: Second in Command: The Chief Behind the Chief with Cameron Herold
Host: Cameron Herold
Release Date: March 20, 2025

Introduction

In Episode 459 of the Second in Command podcast, host Cameron Herold delves into the critical process of selecting a Chief Operating Officer (COO) who can drive organizational growth. This episode, titled "The Art of Selecting a Second-in-Command that Drives Growth," offers valuable insights for CEOs and leaders looking to enhance their leadership teams by effectively leveraging the role of a second-in-command.

Why Hire a COO?

Cameron Herold opens the discussion by exploring the fundamental reasons CEOs consider hiring a COO. He emphasizes the importance of understanding the leverage a COO can provide to the CEO, enhancing both personal and organizational effectiveness.

"The right COO can bring so many benefits to a CEO. The exponential power of the right two in a box, the circle of mutual complementary energy of yin and yang." ([04:15])

Herold outlines that a COO not only supports the CEO by handling operational tasks but also contributes to the company's strategic growth and sustainability.

Understanding Your Unique Abilities

A significant portion of the episode focuses on the concept of "Unique Ability" (UA), a framework Herold adapted from Dan Sullivan at Strategic Coach. He explains how CEOs can identify their UA to better delegate tasks and responsibilities.

"Unique abilities are what allow you to maximize your leverage as a leader by ensuring you only work on projects and areas of the business that you're best suited to." ([05:20])

He introduces the "Activity Inventory" method, encouraging CEOs to categorize their tasks into four areas: Incompetent (I), Competent (C), Excellent (E), and Unique Ability (UA). This categorization helps in pinpointing which tasks to delegate, outsource, or eliminate, paving the way for hiring a COO who complements the CEO's strengths and fills gaps in their capabilities.

The Role of a COO in Organizational Growth

Herold elaborates on how a COO can transform a business by taking over high-value tasks that the CEO does not enjoy or excel at. This delegation allows the CEO to focus on their UA, thereby increasing overall productivity and fostering a positive organizational culture.

"The right COO frees up the time that you've been spending on tasks outside your unique abilities so that you can devote more to those areas that you love and that give you energy." ([07:05])

He highlights that a COO acts as the "Chief Energizing Officer," injecting positive energy into the organization, which is crucial for maintaining morale and driving forward momentum.

Building Trusting Relationships Between CEO and COO

A key theme is the relationship dynamics between the CEO and COO. Herold stresses the importance of mutual trust, respect, and personal affinity in this partnership.

"You need someone you can trust, be vulnerable with, and open up to—the yin to your yang." ([08:30])

Drawing from his experience with companies like 1-800-GOT-JUNK, Herold illustrates how a strong personal connection can enhance professional collaboration, leading to exponential growth and a harmonious leadership structure.

Positioning for Growth and Exit

Herold discusses the strategic importance of hiring a COO not just for current operations but also for future growth and succession planning. A COO can help position the company for the CEO’s eventual exit by building a resilient organization that does not solely rely on the CEO.

"The CEO's obligation to their shareholders is to build an organization that runs itself, doesn't solely rely on the CEO, and can continue on with someone new." ([10:00])

This preparation ensures business continuity and attracts potential buyers or successors, safeguarding the company's legacy and long-term success.

The Evolving Role of COOs in Modern Businesses

Addressing the dynamic business landscape, Herold highlights how the role of COOs has expanded beyond traditional industries into startups and tech-driven companies. He points out that younger COOs bring valuable skills in technology, automation, and digital marketing, which are essential for navigating today’s fast-paced market changes.

"Younger COOs tend to have impressive strength in technology, automation, and digital marketing... they can develop people skills quickly." ([12:45])

Herold underscores the necessity for COOs to embrace change and leverage new technologies to keep the organization ahead of industry trends.

Real-Life Examples and Personal Insights

Throughout the episode, Herold shares personal anecdotes and real-life examples to illustrate the benefits of having the right COO. He recounts his partnership with Brian at 1-800-GOT-JUNK, where their complementary skills and mutual trust led to significant business growth.

"Brian and I were like nitroglycerin. We ignited productivity and rapid growth." ([16:30])

These stories highlight the transformative impact a well-chosen COO can have on both the leader and the organization.

Conclusion

In summary, Episode 459 of the Second in Command podcast provides a comprehensive guide for CEOs on selecting a COO who not only complements their leadership style but also drives the company towards sustained growth and success. By understanding their own strengths and delegating effectively, CEOs can create powerful partnerships that elevate their businesses to new heights.

For more insights and strategies from top COOs, visit cooalliance.com.

Notable Quotes:

"Unique abilities are what allow you to maximize your leverage as a leader by ensuring you only work on projects and areas of the business that you're best suited to." – Cameron Herold ([05:20])
"The right COO frees up the time that you've been spending on tasks outside your unique abilities so that you can devote more to those areas that you love and that give you energy." – Cameron Herold ([07:05])
"You need someone you can trust, be vulnerable with, and open up to—the yin to your yang." – Jim Morris Rowe, COO of 15Five ([08:30])
"The CEO's obligation to their shareholders is to build an organization that runs itself, doesn't solely rely on the CEO, and can continue on with someone new." – Cameron Herold ([10:00])
"Younger COOs tend to have impressive strength in technology, automation, and digital marketing... they can develop people skills quickly." – Cameron Herold ([12:45])
"Brian and I were like nitroglycerin. We ignited productivity and rapid growth." – Cameron Herold ([16:30])

This summary encapsulates the episode's key discussions on the strategic selection and integration of a COO, providing actionable insights for leaders aiming to optimize their organizational structure and drive growth.

Transcript

Cameron Herold (0:00)

Hey, it's Cameron Herald, the host of the Second in Command podcast. Before we dive in, there's something you need to know. If you're a coo, VP Operations, or you're in any role where you're the second in command to the CEO, the COO alliance is the place for you. If you're the integrator to the visionary, you're going to want to join us. The COO alliance is the world's leading community for the second in command. We've had over 500 members like you join from 17 countries to grow their skills, connections and confidence. You'll get the tools, friendships, and a 10x guarantee to ensure that you get your money's worth. Go to cooalliance.com to learn more and see if you qualify. You can even book a free call with our team to ask questions. Now, let's jump into this week's episode.

Unknown (0:49)

Welcome to the Second in Command podcast, produced by the COO alliance and brought to you by its founder, Cameron Herold. On the second in command podcast, we talk to top COOs who share the insights, strategies and tactics that made them the chief behind the chief. And now, here's your host, Cameron Herold.

Unknown (1:15)

All right, so on today's episode, we're going to talk about why do you hire a coo?

Cameron Herold (1:19)

Why do you need that second in command? What's the real leverage that you're going.

Unknown (1:22)

To get as that CEO inside of the company?

Cameron Herold (1:25)

What kind of leverage should you expect.

Unknown (1:27)

From what are the key reasons for bringing one into the company?

Cameron Herold (1:30)

When do you bring one into the organization? We'll do a really deep dive around that.

Unknown (1:34)

You're going to love this content and.

Cameron Herold (1:35)

You can also share this content from our Second Command podcast YouTube channel, as.

Unknown (1:40)

Well as anywhere that you listen to podcasts. We'll see you on the inside. The right COO can bring so many benefits to a CEO. The exponential power of the right 2o in a box, the circle of mutual complementary energy of yin and yang. But only if the CEO knows what they're looking for. Before you know what you need from a coo, you need to understand the kind of CEO you are, who you are, what you do, and what skills you need to bring into the mix. An activity inventory. CEOs aren't always given to self reflection, but that's where finding the right second in command starts. It might not be an appealing prospect, but think of it this hiring a COO is going to make your business better, your life better, and you better put the time into pinpointing the changes that will improve your situation the most, make your personal situation more sustainable, and make the time you spend on your business more effective. Otherwise, you'll end up hiring someone who would make someone else's life better, but not necessarily yours. The best place to start is with an activity inventory, a process I learned from Dan Sullivan at Strategic Coach. Imagine someone followed you around at work for a month and filmed everything you did, from replying to emails and booking flights to chairing meetings and planning budgets. Make a list of all the tasks the camera would capture, then categorize them in one of four ways. I for incompetent, meaning you suck at it C for competent, you're okay at it. E for excellent. You have a high level of skill at it, but you don't love it. And UA for unique ability. This is what you're best at and you would do it for free if you didn't need to feed yourself and your family. The fourth concept is key. Sullivan shows us that unique abilities are what allow you to maximize your leverage as a leader by ensuring you only work on projects and areas of the business that you're best suited to. When you're in the realm of your uas, you love the work and feel energized by it and the people around you gain energy from you. If you're spectacular at something but don't get energy from it, by the way, don't class it as a ua. Leave it as an E instead. The interesting thing about your UAS is that they're difficult to recognize because sometimes they're what come most naturally to you. Something might seem so simple you assume that anyone could do it if they just copied what you do, but that's not the case. The whole point is that not anyone could do it. Other people might be excellent in your unique ability area, but that doesn't mean that they love doing it. It doesn't mean they would do it for free. In my case, I'm excellent at sales, but I don't love selling. I find it difficult and the thought of one more sales call drains me. That's an E for me. My UA is speaking and coaching. If someone could fly me around the world by private jet so I didn't have to spend all my time in airports, I would do every speaking event I got offered. I'd take my wife with me and we'd party. I'd fire up the audience, build a brand and love the process. I don't particularly enjoy the networking and travel both ease, but speaking is amazing. It's a unique ability area for me for sure. It wasn't until I worked with Dan that I came to understand my unique ability. Although looking back, I realized that it was always involved recruiting and rallying people. I was good at sharing my ideas, starting from winning public speaking contests in second grade. I also loved being on stage and playing the lead role. In 1989, when I was 24, I started helping entrepreneurs through coaching, which I enjoyed and it was quite a step given that business and life coaching didn't even become a profession until 1993. In fact, by 1994 I'd already coached 120 entrepreneurs once you've broken all your professional tasks down into four categories, you can start to identify work that you could delegate. The first step is to get all the incompetent and competent tasks off your plate. Stop doing those tasks at once. Outsource them, optimize them, automate them and delegate them to an employee or hire an executive assistant to do them for you. Now take all the higher value initiatives that you don't love doing and that are beyond the purview of an EA or regular employee and put them in a bucket. That builds out a job description for a second in command. Then you hire a great COO to do all the important high value work that isn't one of your unique abilities. If that sounds too simple a description, it's really not. Once you know what you need, the whole exercise becomes a lot more straightforward. Free up time, multiply energy and get more done. The eyes, sees and even ease on the activity inventory. Don't just reveal the tasks that you don't love. Doing those tasks actually SAP your energy and that of the company. If you continue handling them, they'll be a net drain on your organizational capacity. Just because you've often done something doesn't mean it needs to be done or that it needs to be done by you. Remember your to do list doesn't mean you have to do it. Identify what drains you. I get overwhelmed by running operations, for example, because I've got a million things I want to get started on. I need someone to take all the ideas, prioritize them, run them, and manage the team and resources so we can get more done faster. That shit is key, but it's not my unique ability. Once you know what sucks energy from you, you start to crystallize the role that you need a second in command to fill. The right COO gives you a chance to customize your experience within the business by getting stuff off your desk that has to be done, but again, not by you. The right COO frees up the time that you've been spending on tasks outside your unique abilities so that you can devote more to those areas that you love and that give you energy. Then you can feed that energy into the rest of the organization instead of projecting exhaustion, frustration or stress. That's where a COO adds real leverage. Part of the CEO's job is to be the Chief Energizing Officer, bringing more positive energy into the business every day. By working only on high impact areas that give you energy, you will positively affect the whole organization. On the other hand, if you spend time working on roles you hate or aren't good at, your negative energy will be detrimental to everyone. No one wants to see the CEO slumped over a set of spreadsheets with their head in their hands. Quantum physics talks about momentum creating momentum and energy seeking other similar energy closer to home. Consider how meeting a grumpy barista in the morning can set a negative tone for your day, just as meeting a friendly and positive one can leave you full of energy. If that momentary interaction with a relative stranger can affect your day, which it has been scientifically proven to do, then just think about how important it is for leaders who work with employees for dozens of hours every week to take responsibility for their attitude, impact and energy. Position for Growth or Exit Every CEO will eventually exit the company, whether they sell, retire or die. That's not meant to be mawkish. It's realistic. Even though most CEOs feel like they want to lead forever, a CEO can be a key ally in helping to position a company for the CEO's eventual exit. The CEO's obligation to their shareholders is to build an organization that runs itself, doesn't solely rely on the CEO, and can continue on with someone new. That resilience and longevity require having the necessary systems and teams in place. Those systems are best put into place by a COO to ensure that a company can continue to scale without the current CEO. Remember, too, that the COO might be or become the CEO's heir. Apparently, a business will always have a CEO because someone has to be the leader, setting vision and strategy, being accountable, and serving as the legally required signing officer. But it won't always be you. Trusted partner. People assume being a CEO is exciting, but I don't have to tell you that it can also be quite lonely. You're isolated. You can't really tell your board of directors or advisors everything that's going on. You can't lean on your employees when you're scared, overwhelmed, overworked, worried or unsure. You can't even share with your spouse without risking stressing them out. If things aren't going well, the CEO needs to if you haven't already signed up for my online training where I cover the 12 essential leadership skills for.