How to Hire a COO: A Complete Guide for UK Companies

The Chief Operating Officer is the executive most directly accountable for whether the firm actually delivers on what it promises — operationally, commercially and at scale. The role has shifted substantially as firms have grown more complex, customer expectations have tightened and the operational side of competitive advantage has become more visible. The COO of a UK mid-market business is doing a different job from the COO of a large private equity-backed group, and both are different again from the COO of an FCA-regulated firm holding SMF24 accountability. Hiring a COO is consequential because the appointment shapes the firm’s operational reliability for several years, defines the executive team’s capacity to scale, and is one of the appointments most likely to go wrong when the board under-specifies the role at the start.

This guide is written for chairs, CEOs, founders and shareholders working through a COO appointment at a UK business. It covers when the firm needs a COO rather than a Head of Operations or Operations Director, what the role covers, what the candidate pool looks like at different company stages, how the search should run, what drives the package, and what the first hundred days look like. For our service across permanent, interim and fractional engagements, see COO recruitment. For appointments into FCA-regulated firms where the COO will hold SMF24 (Chief Operations function), our SMF24 hiring guide covers the regulatory process in more depth.

The COO role and its variations

The COO seat looks different in different firms. Four patterns come up again and again, and they are worth separating because each attracts a distinct candidate pool and needs a different role specification.

The COO as operational delivery leader. The most established version of the role. The COO owns the firm’s operational functions — operations, supply chain, customer operations, service and support, sometimes technology and HR — and is accountable for delivery, performance, scaling and operational quality. The CEO sets strategy and leads the commercial agenda; the COO runs the engine room. This pattern is most common in established mid-market and larger businesses, particularly in services, manufacturing, logistics and complex B2B firms.

The COO as second-in-command. The COO acts as the CEO’s deputy across the breadth of executive responsibility, running day-to-day execution while the CEO concentrates on external relationships, strategic direction, fundraising or M&A. This pattern is common in founder-led businesses where the founder needs operational support, in scale-ups where the CEO spends most of their time outside the business, and in private equity-backed structures during periods of change. Strong second-in-command COOs usually have substantial general management experience, and the role often functions as a CEO-in-waiting position — something that should be discussed openly rather than left implied.

The COO as transformation leader. The COO is brought in to lead a specific operational change — system replacement, process redesign, post-acquisition integration, operational maturity for a scaling business, or remediation after a failure. The role carries a defined transformation scope alongside ongoing operational accountability, and the candidate is usually chosen for a track record of delivering similar change elsewhere. This pattern is common in portfolio companies, post-merger businesses and firms responding to material operational problems.

The COO as functional executive. The COO runs a particular bundle of functions at executive level — operations plus customer service, operations plus technology, or operations plus people — without the breadth of the delivery or second-in-command patterns. It is most common in smaller mid-market businesses with a narrow executive team, and in firms where the CEO keeps much of the operational integration personally.

Boards approaching a first COO appointment, or refreshing the role after several years, benefit from deciding which pattern the firm needs before the search begins. Each has different implications for the candidate pool, the package, the executive team structure and onboarding. A useful test is to write down the three things the new COO must have achieved by the end of their second year. If those three outcomes are mostly about reliability and performance, the firm needs a delivery leader. If they are mostly about freeing the CEO, it needs a second-in-command. If they are about a specific programme, it needs a transformation leader.

When does a firm need a COO?

Not every firm needs a COO. Many UK businesses run effective operations through an Operations Director, strong functional heads and a CEO who does the operational integration at executive level. Moving to a dedicated COO should be a deliberate decision, and five triggers usually signal that it is warranted.

Operational scale and complexity. Multi-site operations, a multi-jurisdiction footprint, complex supply chains, large operational teams or a growing customer base with demanding service expectations. At this point the operational function needs strategic leadership for the same reason the finance function does: the decisions are too consequential to be left at departmental level.

CEO capacity and focus. In many firms the CEO is the operational integrator by default. When the CEO’s external commitments — investors, M&A, fundraising, key customers, regulators — grow beyond the time left over after running operations, a COO usually becomes necessary. Boards often spot this trigger late, once the CEO has been over-stretched for some time and operational performance has already started to slip.

Strategic transition. Acquisitions, international expansion, a change of business model, a technology platform replacement or post-merger integration. These transitions need operational leadership at executive level, not just strong departmental management.

Investor or capital structure changes. Private equity investment, a growth capital raise or preparation for a listing. Investors often expect to see clear operational leadership in the management team, because the investment case depends on execution and the board needs a named executive accountable for it.

Regulatory or governance demands. At banks, insurers and enhanced-tier FCA firms, the Chief Operations function (SMF24) is a senior management function in its own right, and the FCA’s operational resilience requirements expect firms to identify important business services and stay within set impact tolerances. That creates a clear need for executive-level operational ownership.

Where none of these triggers applies, an Operations Director reporting to the CEO may be the right answer — see our Operations Director recruitment service for that route. Firms that appoint a COO without the underlying triggers often find the role under-defined and the appointment failing to deliver the value that justified it.

What a COO actually does

The substance of the role falls into five areas, with the balance varying according to which pattern the firm has chosen.

Operational delivery and performance. The foundation. The COO is accountable for whether the firm’s operations work — delivery against operational measures, service performance, supply chain reliability, process efficiency and quality. This is the part of the role that least tolerates failure. A COO who offers strategic vision but cannot keep operations running well is in a weaker position than one who can.

Operational scaling and transformation. Building the operational capability the firm needs as it grows or changes — system selection and implementation, process design, organisation structure, capability building and operational technology choices. Strong COOs combine continuity, keeping today’s operations working, with change, building what the firm needs next. Weaker COOs tend to over-emphasise one at the expense of the other.

Cross-functional integration. The COO is often the executive most accountable for whether the firm’s functions work together — operations with sales, finance, technology and people. This integration work is one of the clearest differences between COO-level capability and Operations Director capability. Strong COOs are partners across the executive team; weaker ones run an operational silo.

Risk and resilience. Operational risk, business continuity, supply chain and third-party risk, cyber exposure and operational resilience. This area has grown in importance for every type of business, and at regulated firms it carries specific rules and personal accountability. COOs at regulated firms may hold SMF24; COOs elsewhere still usually own operational risk at executive level.

Executive contribution. The COO sits on the executive committee and often the board, contributing to decisions beyond the operational remit — strategy, acquisition diligence, organisation design, talent and culture, and technology investment. Strong COOs are genuine partners to the CEO on these questions; COOs who stay inside the operational box tend to be replaced sooner.

COO, Operations Director or Head of Operations?

Many COO searches start with the wrong title. The three roles overlap, but they sit at different levels and attract different people, and getting the level right is the single most useful decision a board can make before briefing a search.

• Head of Operations. A senior manager running one or more operational teams, usually reporting to an Operations Director or the CEO of a smaller business. The focus is day-to-day delivery, team management and process. Strategic input is limited.
• Operations Director. The senior operational leader of the business, typically reporting to the CEO or MD and sometimes sitting on the board. Owns the operational plan, budget and performance, and contributes to strategy within the operational remit. In many owner-managed and mid-market firms this is the right seat.
• Chief Operating Officer. An executive committee role with accountability across functions, not just operations. The COO shapes strategy alongside the CEO, owns cross-functional delivery, and in larger or regulated firms carries formal accountability for operations, technology and resilience.

If the honest answer is that the business needs someone to run operations well and report to the CEO, an Operations Director brief will attract a stronger and better-matched field than a COO brief. If the business needs someone to share the executive load, integrate functions and lead change, the COO title is justified — and the specification, reporting line and package need to reflect that. Calling an Operations Director role a COO role to make it more attractive usually backfires: strong COO candidates see through it in the first conversation, and the people who stay in the process are often a level below what the title promised.

The COO candidate pool

The UK COO candidate pool is reasonably sized, but the best candidates at the senior end are in demand from mid-market, private equity-backed and regulated businesses at the same time. Five pools recur.

Sitting COOs at peer firms. The most common pool — candidates who currently hold the COO role at a firm of similar size, sector and complexity. They have shown they can do the job and they bring direct sector experience. The challenge is that the most credible people in this pool rarely need to move, so discreet direct approach is the standard method and the proposition has to be clear from the first contact.

Operations Directors at larger firms stepping up. The natural step-up pool: an Operations Director or VP Operations at a considerably bigger business who is ready for the COO seat at a smaller one. They bring depth from a more demanding environment, with the trade-off that they are taking an executive seat for the first time. Good assessment in this pool concentrates on whether the candidate has already shown cross-functional integration and executive contribution, not just operational delivery.

Sector specialists from related industries. Where the business has specific operational dynamics — financial services, healthcare, logistics, manufacturing, other regulated sectors — candidates who have run senior operations in similar settings bring relevant judgement. Operational skill does transfer between sectors, but specific disciplines, regulators and stakeholder relationships often justify sector experience.

Consulting and advisory transitions. Senior partners and directors from operations consulting moving into in-house COO roles. They bring method and broad exposure; the question is whether they have made a genuine move from advising to running, ideally with at least one in-house operating role already behind them.

Functional executives stepping across. Candidates whose recent roles have been as CFO, Chief Customer Officer or CTO, where operations formed a large part of their accountability, and who are now ready for the breadth of the COO seat. They can be strong choices where the operational function is closely tied to finance, technology or customer experience. Boards weighing a finance-led candidate should be clear about which parts of the CFO’s current remit would move with them.

Engagement models — permanent, interim, fractional

We place COOs on permanent, interim, fractional and part-time terms, and each suits different situations.

Permanent COO appointments are the most common. The role is structurally part of the executive team and continuity matters for operational performance. Permanent searches follow the process set out below, on a retained basis throughout.

Interim COO appointments are common during transitions — operational transformations, platform replacements, post-acquisition integration, remediation, or bridging the gap between a departing COO and a permanent successor. An interim COO works full-time for a defined period. The candidate is usually chosen for a record of similar interim assignments rather than long-term cultural fit, and engagements run from a few months to well over a year depending on the scope. Interim COOs can often start quickly because they are between assignments, which makes them a practical answer when a seat is empty or a programme is already off track.

Fractional COO appointments suit growth-stage and smaller mid-market firms where operations warrant executive-level leadership but the size of the business does not yet justify a full-time hire. A fractional COO typically works a set number of days each week or month, often across more than one business, bringing senior judgement without the full-time cost. Part-time COO arrangements are similar but usually involve a single business and a fixed weekly commitment. Both work best where the business has capable operational managers who need direction and structure rather than someone to do the work.

Across all models the substance of the role is the same. The differences are time commitment, engagement structure and expectations about continuity. A common sequence for a scaling business is fractional first, then a permanent COO once the operational agenda fills the week — and a well-run fractional engagement often leaves a clear specification for the permanent hire.

COOs at FCA-regulated firms: SMF24

Where the COO will join an FCA- or PRA-regulated firm, the appointment sits inside the Senior Managers and Certification Regime (SM&CR). The Chief Operations function, SMF24, covers responsibility for the internal operations and technology of the firm. It applies at dual-regulated firms such as banks and insurers and at enhanced-tier FCA firms; it is not one of the functions that applies at core-tier solo-regulated firms. Where it applies, the individual must be approved by the regulator before taking up the role, must have a Statement of Responsibilities, and is subject to the Senior Manager Conduct Rules and the duty of responsibility.

The regime is being reformed. In October 2026 the FCA published CP26/37 and the PRA published CP14/26, the second phase of the SM&CR review. The proposals would move a number of senior manager functions from pre-approval to notification, remove the Certification Regime and extend the temporary cover period. Both regulators propose that SMF24 stays a pre-approved role, citing the operational risks firms now face from areas such as artificial intelligence and cyber, with a review two years after the changes take effect. These are proposals: the consultations close on 22 January 2027 and the final rules may differ. Firms hiring a COO now should plan on the current approval process.

In practice that means building regulatory approval into the timeline from the start, preparing the Form A and the Statement of Responsibilities alongside the offer, and checking fitness and propriety early in the process rather than after the candidate has resigned. Our guide to how long FCA SMF approval takes sets out what drives the regulator’s timetable. At smaller regulated firms the COO may also hold other functions, and the combination needs to be thought through before the role is advertised.

The search process

A well-run COO search has six phases. Durations below are typical rather than guaranteed — they depend on the seniority of the role, the depth of the pool and the candidate’s notice period — and regulated appointments need extra time for regulatory approval.

The brief. The board, the CEO and the search firm agree which COO pattern the firm needs, the role specification, how the candidate pool will be framed, the package range and the timeline. COO briefs benefit more than most from settling the pattern and the CEO–COO boundary at this stage rather than presenting a generic COO role.

Market mapping and candidate identification. Structured mapping across the relevant pools, identification of named candidates, and discreet first approaches. This is where most of the search effort goes, because the strongest candidates are rarely looking.

Shortlist development. The strongest candidates from mapping are engaged formally and taken through structured first-stage assessment. COO shortlists usually run to a small number of genuinely comparable candidates rather than a long list.

Interviews and assessment. The shortlist meets the CEO, the wider executive committee, the chair and, where relevant, major shareholders or investors. COO assessment combines operational depth with executive capability and the integration dimension.

Selection and offer. The preferred candidate is offered the role and terms are agreed. COO negotiations frequently involve real work on the variable pay structure and any equity, particularly in private equity-backed businesses.

Onboarding and handover. The new COO works their notice while the business prepares executive committee onboarding, introductions to the operational team and a first hundred days plan. Senior notice periods are often three to six months, so this phase deserves as much planning as the search itself.

Assessment: how to evaluate COO candidates

COO assessment combines operational depth with executive leadership capability. Three dimensions deserve particular attention.

Operational track record at scale. Strong COO candidates can explain their operational contribution in concrete, checkable terms — performance improvement, cost, capacity, service outcomes, transformation results. Case-style discussion of the specific challenges the firm faces — process redesign, scaling capacity, platform replacement, organisation design — reveals far more than generic competency interviews. Candidates who default to abstract frameworks rather than engaging with the detail often have less operational substance than they present.

Cross-functional integration. The dimension that separates strong COOs from senior Operations Directors promoted too early. Strong COOs work across operations, finance, sales, technology and people, joining up outcomes across the firm rather than running a separate operational function. References from CFOs, commercial leaders and CTOs the candidate has worked alongside are the most reliable evidence here.

Executive contribution and influence. The COO must operate at executive level, partnering the CEO and contributing to decisions beyond operations. References from previous CEOs and chairs provide the evidence. COOs who have been operationally strong but struggled to influence at executive level often do not succeed in the second-in-command pattern.

One trap recurs: confusing operational management with COO leadership. Candidates who have run large operational functions well are not automatically able to lead at executive level across integration, transformation and strategy. The assessment should test the executive dimension explicitly — for example by asking the candidate to take a position on a live strategic question the board is facing and defend it in front of the CEO and CFO.

What drives the COO package

COO packages usually have four components — base salary, annual bonus, long-term incentives and benefits — but the levels and structure vary widely. Rather than relying on headline figures, boards are better served by understanding what moves the package and benchmarking against the live market for their specific brief.

Size and complexity of the business. Revenue, headcount, number of sites and countries, and the complexity of the operating model all push the package up. A COO running a multi-site, multi-country operation is in a different market from one running a single-site business.

Ownership structure. Private equity-backed businesses commonly use management equity alongside salary and bonus, which can change the overall economics substantially. Founder-led firms may offer equity to attract senior operational leaders. Listed companies work within shareholder-approved remuneration policies and longer-term incentive plans, with the board’s approach to executive pay shaped by the UK Corporate Governance Code.

The pattern of the role. A second-in-command COO with genuine CEO succession potential, or a transformation COO with a defined and difficult programme, will usually command more than a functional COO with a narrower remit.

Sector and regulatory accountability. Financial services COOs, particularly those holding SMF24, carry personal regulatory accountability, and packages tend to reflect that. Industrial and manufacturing COO packages often lean more heavily on variable pay linked to operational performance, while technology businesses frequently weight equity more heavily.

The internal reference point. Boards that anchor on what the previous COO earned, or on Operations Director pay, often make offers strong candidates decline. Our COO recruitment team benchmarks each mandate against the candidates actually in the market for that brief, which is a better guide than historical precedent.

Common COO search pitfalls

Six patterns recur in COO searches that go off track.

Briefing an Operations Director rather than a COO. The most common failure. Specifications that focus on operational delivery and team management, without the strategic, integration and executive dimensions, attract candidates whose seniority does not match what the firm needs.

Mixing the COO patterns. Specifications that blend operational delivery and second-in-command expectations without stating the priority attract a confused field. The fix is to settle the pattern before the search opens.

Leaving the CEO–COO relationship undefined. This is the most important working relationship for the new COO. Strong candidates probe it carefully, and boards that leave the chair–CEO–COO triangle to sort itself out often see friction within the first few months.

Package anchored on internal precedent. As set out above, offers based on the predecessor’s package or on Operations Director pay frequently fall short of what strong candidates expect.

Pattern-matching to the previous COO. Looking for someone who resembles the predecessor — same background, sector and career path — is rarely right, because the firm’s situation has usually moved on.

Underestimating regulatory approval at regulated firms. Where the COO will hold SMF24, approval must be in place before they take up the role. Boards that do not build this into the timeline risk a gap at the top of operations, or a new COO starting without the authority the role requires.

The first hundred days

The first hundred days are where the work done before the appointment either pays off or falls away. Three things usually decide the outcome.

The CEO–COO working relationship. Good onboarding includes structured time between the CEO and the new COO before the formal start — covering the CEO’s view of the operational trajectory, the boundary between CEO and COO territory, the rhythm of their working relationship and any issues from the previous COO’s tenure that the newcomer needs to understand.

The operational team review. The new COO inherits an operational organisation and must decide quickly who will lead the next phase, who needs development and who needs to move on. This assessment happens through one-to-ones, observation of operational reviews and, where possible, an honest handover of views from the previous COO.

The first operational review. Most new COOs face the question of where operational performance really sits compared with what has been reported. Good onboarding gives the COO the time and information to do this review properly rather than reactively — operational measures, service health, supply chain and third-party risk, technology stability and a realistic operational forecast for the year ahead.

A new COO who uses the first hundred days to listen, diagnose and agree a short list of priorities with the CEO and board is usually in a stronger position than one who arrives with a ready-made plan. The exception is a transformation or interim COO hired to fix a known problem, where the board will rightly expect visible action much sooner.

How Exec Capital approaches COO mandates

Exec Capital runs COO searches as combined operational and executive leadership work. The operational side — track record, transformation capability, integration, risk and resilience — gets the same rigour we bring to any C-suite search, with the executive leadership dimension assessed alongside it. We work on a retained basis for permanent COO mandates, and the engagement runs through to the candidate’s first day in role.

Our COO practice covers SME, mid-market, private equity-backed, scale-up and corporate businesses across financial services, professional services, technology, industrial, manufacturing, healthcare and consumer sectors. For portfolio businesses we run private equity COO searches aligned to the investment plan, and where the appointment is into an FCA-regulated firm and the COO will hold SMF24, we build the regulatory requirements into the brief from the start.

For boards starting a COO appointment, deciding whether the firm needs a COO at all rather than a strong Operations Director, or working through which COO pattern fits, we offer an initial conversation covering the role specification, the candidate pool and a realistic timeline before any formal mandate begins. Every search is run by our specialist team, with Adrian Lawrence FCA overseeing each mandate.

Frequently asked questions

What is the difference between a COO and an Operations Director?

An Operations Director runs the operational function and typically reports to the CEO or MD. A COO sits on the executive committee with accountability across functions, shares the strategic agenda with the CEO and, at larger or regulated firms, carries formal responsibility for operations, technology and resilience.

How long does it take to hire a COO?

A permanent COO search usually takes several months from brief to accepted offer, followed by the candidate’s notice period. Interim and fractional COOs can usually start much sooner. Regulated appointments need additional time for regulatory approval.

Should we hire a fractional or a full-time COO?

A fractional or part-time COO suits a business that needs senior operational judgement and structure but does not yet have a full-time executive agenda. Once operational complexity fills the week, or investors expect a full-time executive, a permanent COO is usually the right step.

Does a COO need FCA approval?

Only where the role falls within a senior management function. At dual-regulated firms and enhanced-tier FCA firms the Chief Operations function (SMF24) requires approval before the individual starts. Current regulator proposals under CP26/37 and CP14/26 would keep SMF24 pre-approved.

What should a COO job specification include?

The COO pattern the firm needs, the functions in scope, the reporting line and CEO–COO boundary, the three or four outcomes expected in the first two years, and any regulatory responsibilities. A short, specific specification attracts a better field than a long generic one.