As nonprofit organizations grow and evolve, the complexity of operations increases. This growth can strain leadership teams, particularly when key leaders become bogged down in daily and/or operational tasks. For many nonprofits, adding a Chief Operating Officer (COO) can be a game-changer, enabling the Chief Executive Officer (CEO) to focus on strategic goals and advancing the mission.

When Should a Nonprofit Consider Hiring a COO?

1. Revenue Size: Many nonprofits have already hired a COO when their annual revenue approaches $5 million. While this threshold can vary based on the organization’s size and structure, it represents a significant point where the benefits of a COO become evident.
2. Staff Size: Operations with 75 or more employees often see advantages in hiring a COO. This benchmark can serve as a good indicator of when it might be time to reassess organizational structure and consider the addition of a COO to manage internal operations and resources effectively.
3. Complexity and Growth: As organizations expand, managing multiple programs, services, or locations can become increasingly complex. A COO can help navigate this complexity, ensuring that operational aspects align with growth plans and that the organization remains agile and efficient.
4. Operational Challenges: Long-standing leaders may leave behind outdated systems and processes that need modernization. A new leader often finds themselves focused on updating these areas, delaying the implementation of strategic initiatives. A COO can address these operational challenges, allowing the CEO to concentrate on long-term vision and strategy.
5. Balancing Leadership Focus: If a CEO spends more than 60% of their time on daily operations, a COO can help rebalance this focus. By managing day-to-day tasks, the COO allows the CEO to dedicate more time to strategic goals and foster a stronger partnership with the board, team, investors/donors, and other community organizations.

For nonprofits contemplating the strategic addition of a COO, KEES offers expert guidance in identifying and recruiting top executive talent tailored to your organization’s goals and needs. With extensive sector experience, KEES can help you find the right COO (for the first time or to reposition the role) to optimize operations and drive growth. By leveraging our insights and understanding of the key benefits, you can make informed decisions that enhance your organization’s long-term impact. Contact KEES (formerly known as Alford Executive Search) today for more information or to schedule an exploratory call to discuss how they can support your leadership and growth needs.