Outsourced COO
Professional C-Level Management
At a Fraction of the Cost of a Full Time COO
Investopedia defines the Chief Operating Officer of a company as "the senior manager who is responsible for managing the company's day-to-day operations and reporting them to the chief executive officer (CEO)."
According to the Harvard Business Review "the effectiveness of COOs (or ranking operations executives by whatever name they are called) is critical to the fortunes of many companies—and could be to many more. As we will suggest, the second-in-command executive is a role that by rights should become increasingly prevalent. It is prevented from doing so, perhaps, because it is so misunderstood."
Because the Critical Factors Management System provides for systematic accountability management, we can offer COO services on an outsourced basis at a fraction of the cost of hiring a full time COO. Our Outsourced COO service is a flexible, cost-effective means of providing executive level management assistance to the owner/CEO.
The Outsourced COO service is available exclusively to Critical Factors Management System clients. Since our specialty and point of differentiation is working directly with our clients to execute their business strategy, we are ideally positioned to efficiently develop or refine the business strategy as needed and allocate accountability for execution to the appropriate members of the management team.
Working hands on with members of the management team and through the process of customizing the Critical Factors Management System we are able to develop aggressive but achievable revenue and sales growth targets; implement expense, cost and margin controls; and manage monthly, quarterly and annual financial goals.
Most importantly, because the Outsourced COO engagement is an extension of the Critical Factors Management System, there is no interruption in productivity or delay in implementation.
Choose a Level That Fits Your Budget
So What Makes Us Different?
Executable Strategies
We help to build realistic and executable strategies based upon a comprehensive analysis of past performance as the foundation. We assist with identifying what must be done as well as what could go wrong and build contingency plans into the strategy. Our systematic process engenders buy-in and often expands the vision by incorporating the input of all members of the team.
Execution, Not Just Advice
We work directly alongside our clients and their management teams to systematically execute their strategies. Our systematic process creates alignment, inspires engagement, establishes accountability, monitors performance, optimizes productivity and provides for the timely-course corrections necessary to achieve year-end goals while maximizing sustainable profitability.
Budget Flexibility
Once the foundation is established (Financial Analysis & Forecast and Customization & Implementation of Management System), our clients choose the level of Outsourced COO/CFO assistance they require on an on-going basis. This flexibility generates the most cost-effective c-level support available to meet the operational and budget requirements of our clients.
Our Systematic Process
Financial Statement Analysis & Forecast
We start our engagements with an analysis of three years of financial statements and use this information to forecast the next five years based upon the trend in performance over those previous three years. This provides a solid foundation for setting realistic goals based upon historical performance, current company resources and projected cash flows.
Strategy Session
We provide the forecast to ownership and then conduct a meeting with the owners and the senior management team to identify financial and performance drivers (critical factors) that can be better managed to positively impact future performance. This optional 1/2 day strategy session yields a high-level strategy and starts the process of creating alignment to the corporate vision.
Develop Fully Customized Management System
We then conduct a full day planning session with all members of the management team that have responsibility for those financial and performance drivers (critical factors) and establish aggressive but achievable goals for the company based upon the historical analysis. This meeting introduces the Critical Factors Management System and solidifies the process of creating alignment and engagement throughout the organization. Every aspect of the meeting is documented within 5 business days including the performance management system (Critical Factors) that is customized to the unique requirements of each client company.
Monthly Performance Monitoring & Course Correction
We receive a monthly update of financial statements which enables us to provide a rolling forecast including projected cash flows based upon current performance. We conduct a monthly, ½ day meeting with the management team to review performance and implement timely course corrections in order to ensure year end goal achievement. Complete documentation is produced and distributed within 72 hours of each meeting.
Year End In-Depth Planning & Budgeting
We conduct a year-end, in-depth planning session, usually in November or December, during which every financial and productivity driver (critical factor) is analyzed and discussed. We work with the management team to revise the goals of the company for the next five years, develop a comprehensive strategy to achieve the goals (including contingencies for anticipated potential threats) and finalize the financial and performance budgets that will enable the company to achieve the goals for the succeeding year.
Monthly Performance Monitoring & Course Correction
We receive a monthly update of financial statements which enables us to provide a rolling forecast including projected cash flows based upon current performance. We conduct a monthly, ½ day meeting with the management team to review performance and implement timely course corrections in order to ensure year end goal achievement. Complete documentation is produced and distributed within 72 hours of each meeting.