Here's a startling statistic: 53% of Fortune 500 companies don't have a Chief Operating Officer. And where the role does exist, other executives often end up doing the traditional COO's job anyway. This paradox perfectly captures one of the biggest challenges facing modern businesses. In today's commercial environment, the COO position is simultaneously crucial and contradictory: whilst it's indispensable for driving efficiency and operations, in practice it's often unclear exactly who does what.

The Invisible conductor

The primary responsibility of a Chief Operating Officer is overseeing day-to-day operations, executing strategy at an operational level, and coordinating between different departments. In reality, however, this position often becomes the most complex role within the organisational structure.

According to a McKinsey study from 2022, the COO role appears to be experiencing a renaissance in the post-pandemic era, with more companies opting to hire operational leaders. However, this research also highlights a key issue: COO responsibilities frequently overlap with other leadership positions, which can create role conflicts.

In smaller companies, it's not uncommon to find no dedicated Chief Operating Officer, with the Managing Director or CEO fulfilling these functions as well. This is particularly characteristic of the Hungarian SME sector, where owners simultaneously handle both strategic development and daily operational management. PwC's 2025 report emphasises that COOs are increasingly acting as change agents, navigating market trends and leveraging data analytics opportunities.

When the machine starts to wobble: reasons for leadership changes

The need for a new Chief Operating Officer can arise in several situations. One of the most common reasons is the departure of the current leader, whether through planned succession or unexpected resignation. According to Novoexec's 2024 research, there's a 27% turnover rate among COOs, which significantly exceeds the average for other executive positions.

Harvard Business Review's seminal study on the relationship between COOs and CEOs concludes that trust is paramount, and incompatibility often leads to departure. The research identifies key reasons for COO departures, including the execution-focused nature of the role, which can cause significant stress, as well as the pursuit of career development opportunities.

Another common scenario occurs when a company realises during its growth phase that it needs a dedicated operational leader. This is particularly typical when the CEO experiences overload and cannot devote sufficient attention to strategic matters because daily operational tasks consume their time. Andreessen Horowitz's 2023 analysis demonstrated that bringing in a COO is especially valuable for complementing the CEO's capabilities and serving as a bridge between teams.

Challenges of the transitional period

A notable trend is that some companies are eliminating the COO position altogether, absorbing it into other roles. This happened at PayPal, for instance, which merged the Chief Financial Officer and Chief Operating Officer roles. This creates a transitional situation, as the tasks previously handled by the COO must be redistributed throughout the organisation.

The consequences extend far beyond mere time management issues. Disruption can occur in company culture, business development, and efficiency improvements if there's no clear accountability for daily operational matters. EXEC Capital Recruitment's March 2025 analysis points out that the COO role is increasingly evolving into a change agent function, where navigating market trends and leveraging data analytics becomes crucial.

Don't rush the decision

Don't hurry your choice! When selecting a new Chief Operating Officer, hasty decisions often backfire. Due to the complexity of the role, it's essential to thoroughly consider the leadership transition process.

The key competencies required aren't limited to technical knowledge alone. Strategic thinking, excellent communication skills, and deep understanding of the organisational environment are all necessary. According to the Operations Council's October 2024 study, digitalisation has significantly transformed the expected knowledge base for operational leaders. Today, data analytics capabilities, understanding of technological trends, and familiarity with agile working methods are indispensable. (Soon, knowledge of generative artificial intelligence will join these requirements.)

If you make the wrong choice, the consequences can be severe: organisational functioning may become paralysed, growth could stagnate, and in the long term, the implementation of corporate strategy might be jeopardised.

What can we do when the ideal COO isn't available?

Transitional periods present serious challenges for companies, particularly when the COO position suddenly becomes vacant or hasn't yet been filled. During these times, it's important that operations remain stable and strategic progress doesn't halt.

An increasing number of domestic and international companies are choosing interim management solutions in such situations. An experienced interim COO can integrate quickly, make immediate decisions, and establish operations on a professional foundation whilst a long-term solution is found.

The benefits of interim solutions in brief:

• Rapid response: executive available within days
• Cost-effectiveness: no long-term salary costs whilst maintaining high-level expertise
• Fresh perspective: as an external expert, can objectively suggest changes
• Stability during transition: organisation doesn't fall apart during the search period

Why Interim Ltd.?

Interim Ltd. has over two decades of experience helping companies navigate even the most critical periods seamlessly. Through numerous successful operational leadership assignments, we've found that interim managers don't just "fill the gap" – they often inject new momentum into the organisation.

Our process doesn't begin with recruitment. We first thoroughly understand the company culture, leadership expectations, and operational challenges. Then we make a specific, tailored recommendation for the appropriate interim specialist.

The selected leader isn't left to manage alone: we maintain continuous contact and ensure that by the end of the interim period, the company is more stable, organised, and efficient than ever before.

Final Thoughts

The role of Chief Operating Officer today extends far beyond coordinating daily operations. This is a strategic position that plays a key role in shaping the company's future. If the position remains temporarily unfilled, an interim solution isn't just an alternative – in many cases, it's the best decision you can make.