In a business setting, having both a President and a Chief Operating Officer (COO) can lead to confusion and inefficiency. The roles of these two positions often overlap, causing ambiguity in terms of responsibility and authority. This overlap can lead to power struggles, slow decision-making, and a lack of clarity for the rest of the team.
Organisations function best when there’s a clear hierarchy and everyone knows their role. A CEO should be at the top of this hierarchy, with the rest of the team reporting directly to them. This structure encourages direct communication, faster decisions, and a more streamlined operation.
The CEO’s role is to set the vision and strategy for the company, while the team’s role is to execute that strategy. If there’s a President or COO in the mix, they often end up acting as a buffer between the CEO and the team, which can lead to communication breakdowns and inefficiencies.
In smaller companies, the CEO often takes on the role of both President and COO, which can be a good fit. But as a company grows, it’s important to delegate operational tasks to a management team, rather than a single individual. This approach encourages a more balanced distribution of power and responsibility, leading to a more effective and efficient organisation.
Go to source article: http://organizationalphysics.com/2015/02/18/organizational-design-why-you-should-not-have-a-president-and-coo/