Chief Operating Officers (COOs) have a role that requires them to strike the right balance between driving business operations and coordinating with the overall company vision. But due to a high level of competition in most industries, COOs will have to face a different reality in 2024. Technologies like AI and generative AI are no longer distant possibilities anymore, they’re right here with us and are transforming industries in ways only a few could’ve ever imagined. COOs are now in the limelight as the competition heats up, where they’re expected to lead their organizations through this technological transition while juggling talent shortages and leadership alignment.
COOs feeling the heat to embrace AI
AI has emerged as a necessity and a ticket to stay competitive in major industries. According to a recent survey by PwC Pulse, more than half of COOs (54%) see the increasing use of generative AI and artificial intelligence in general as a top priority for companies to keep up with the high competition. While 68% of these executives openly admit that their companies are lagging behind the competition even as they rush to adopt new technologies. The pressure is mounting for many COOs, since they recognize that there is no time to wait for AI to evolve and they have to jump in or risk being left behind.
Talent matters as much as tech
All the AI in the world wouldn’t amount to anything if the right people weren’t put in place to run its applications. And that’s why Chief Operating Officers value talent the same way they embrace AI and technology. PwC’s survey shows that 46% of COOs are actively looking for employees who possess the necessary skills to address capability gaps in the workplace, while another set of COOs (46%) are investing in their current workforce through staff training. COO’s are proving once again that it’s all about finding the right balance between bringing in fresh talent while elevating the existing staff. The outcome has been a workforce that’s better equipped to handle the complexities of AI without even missing a beat in day-to-day business operations.
Bridging the gap through partnerships
COOs are fully aware that not all companies have the internal resources to handle the current shift in AI. With that in mind, many executives are now turning to external partnerships to close their talent gaps. Nearly 40% of COOs are engaging third-party providers to augment their skill set while around 38% of operations managers are busy forming external business partnerships. These partnerships are not just measures for fighting competition but act as a new way to bring in new perspectives and skill sets into the workplace. COOs are busy collaborating with artificial intelligence startups and hiring experts in specific projects to stay competitive.
Aligning with the CEO
COOs are also making sure that their operations position is viewed as a strategic partner to the CEO of the company. Modern COOs are pushing for a seat at the table when it comes to strategy and most of them no longer see it fit to stay comfortable with just keeping the wheels running at work. PwC’s survey further highlights that making operations more integral to business decisions ranks highly on the list for operational leaders in 2024. It’s clear how these company executives want to establish themselves as essential collaborators in driving business forward, by increasing their involvement and playing a bigger role in long-term planning.
2024 is the year of change for COO’s and other c-suite positions in general. Most of these executives already know it, and are more than willing to act right away and deal with competition.
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