The COO’s role, if you have one, is to make decisions about the organisation’s operations. They have both a short-term, granular perspective on day-to-day operational issues and a long-term, bigger-picture view on how to position the organisation for success and manage risk.
What’s nice for HR is, most COOs will typically already have an excellent understanding of the value of improving people outcomes. As Claire Williams, Ciphr’s chief people and operations officer, says: “the workforce is a huge chunk of both operational costs and value, so people are firmly on most COOs’ radars as a strategic priority.”
If you can show how and why your proposed HR software investment makes sense for the business, the COO will be a powerful ally.
Remember that they’re taking an organisation-wide view, though. They’ll want to know how the system will integrate into your wider tech stack and that people data will be accessible and joined up across the business, not siloed.
The COO has to juggle two concerns: driving the organisation forwards and also managing risk. Let’s look at their common priorities within those areas.
In this article:
- Driving the organisation forwards
- Managing risk
- The critical steps to gain COO approval for HR software investment
1. Driving the organisation forwards
Your COO will want to understand how your proposed HR and payroll software delivers both immediate value against today’s biggest problems and incremental value against tomorrow’s.
Here’s some typical priorities:
Operational efficiency
How does this tech help the organisation get more done with less? There’ll be obvious efficiencies within HR (and payroll) but think beyond this, too. Improvements to how you use people data has a sweeping impact across the organisation.
For example, maybe you’re spending 50% more this year on contractors and can’t understand why. With better visibility, you could see that the problem stems from the engineering department thanks to 40% higher absences than average. Having that clarity would show you how to take proactive action to resolve the high absenteeism, to save money on external talent.
Collaboration
How does this tech help us collaborate as an organisation? The power of HR software isn’t just within HR but across the business. Good software, implemented well and adopted properly, creates unity among departments and cuts through siloes.
It means HR could work with manufacturing, say, to tackle their challenges in improving the gender balance of their team. Or work alongside the apprenticeships manager to make sure new apprentices are getting the right training and support, which translates into better experiences and creates a cost-effective hiring channel.
The sky’s the limit. As Williams says: “Good HR software doesn’t just make HR better. It positions HR to better support every team across the business, better support all the organisation’s people, and, ultimately, contribute more to overall organisational goals.”
Productivity
How does this tech help the organisation improve productive output? The right HR software is a powerful tool to improve productivity across the business:
- If HR has the right tech to streamline everything they do
- Then employees spend less time on HR management tasks
- And new starters have everything they need to reach productivity faster
- If employees have access to the right learning and training for their role
- And managers have the right tools to lead better and level up their teams
- And every function has granular people data
- Then the whole organisation is better equipped to tackle problems and improve performance
Working model
How does this tech work for how you work? Given the organisational disruption of the past several years, this question is front-of-mind for most COOs.
How will the software work in your specific operational context, whether that’s hybrid, remote, office-based, distributed, heavily outsourced, or whatever else? How could the software adapt if that changes?
Strategic alignment
How does this tech tie into your overarching digital transformation plans? The COO will usually have a longer-term view over the organisation’s plans for the next three-to-five years, so they’ll also be considering investment within this framework. For instance, if it’s in the pipeline to move entirely to the cloud they’re unlikely to back any investment into on-premise tech. Talk to your COO upfront to understand the pertinent priorities so you can source vendors accordingly
Scalability
How does this tech help you meet your changing needs as you evolve? Again, your COO likely has good visibility over the organisation’s future growth plans. They’ll want to ensure the investment aligns to those goals. Think scalable, not static.
2. Managing risk
Alongside the strategic value of your proposed investment, your COO will share concerns with the CTO and CFO around managing risk.
There’ll be known risks you can anticipate and mitigate but bear in mind the process may uncover unforeseen risks too. The COO’s responsibility is to predict and prevent as many of those as possible – then to do their best to ensure the organisation has the resilience and infrastructure to handle risks that do occur.
Here are some considerations:
Supply chain
How does this vendor fit into a resilient and transparent supply chain? Supply chain vulnerabilities can majorly derail business operations.
COOs take the macro-view of the organisation’s supplier landscape, to understand how everything fits together and identify any possible issues. They’ll want to know your chosen vendor fits into the organisation’s procurement processes and existing supply chain policy.
Reputational risk
Is this vendor secure, reliable, ethical, and trustworthy? The COO is likely to have an eye on the potential reputational fall out if the vendor drops the ball with any of their behaviour. Here’s where you’ll need to show you’ve done thorough commercial due diligence, like reviewing testimonial sites, reading case studies, consulting peers, and talking to previous or current customers.
Value alignment
Does this vendor align to the organisation’s values? For example, around ESG (environment, social, and governance) priorities? If your organisation has environmental commitments, say, your COO will want to know how any potential vendors might help you meet those goals. Or, at the very minimum, do nothing to derail those goals.
Pricing and contracts
How does this investment tie up working capital long term? Like the CFO, the COO wants to understand that this investment is cost-effective and competitively priced. They’ll want a clear breakdown of what the investment will cost over its complete lifecycle, including any potential unforeseen additions or planned bolt-ons.
They’ll also have an eye on unpredictable future events that might mean your needs change, such as merges and acquisitions. Is the contract long enough to make implementing new tech worthwhile? But, on the other hand, is it short enough that you’re not over-committing now to something you might want to change?
Security
How does this software keep our business and people safe? Like the CTO, the COO is heavily concerned with information security and data protection. Cybersecurity is one of the biggest threats today’s organisations face. Your COO is partially responsible for predicting, pre-empting and protecting the organisation from them.
To bolster your proposal, work collaboratively with internal experts to ensure you’re ticking the right boxes. Getting your infosec colleagues to validate why this vendor is a good choice can give peace of mind and make a ‘yes’ easier.
Support
If (or when) things do go wrong, how quickly can we fix it? The COO will recognise that you can’t prevent every possible risk. In those cases, it’s about minimising impact and getting back onto an even keel fast. That means typically the COO will want to know about the vendors’ support setup, processes, and SLAs (service level agreements).
Longevity
The COO must balance current concerns with future priorities, with a view to building the long-term operational foundations for organisational success. They’ll consider investment through that lens, to make sure the project is really necessary and valuable for the future.
Most COOs are no strangers to proposals for the latest trendy tech. You’ll need to show this isn’t a whim but a true business need. A business need that, left unaddressed, becomes a risk in its own right. Most COOs are well-aware of the long-term impact of underinvestment.
If your organisation has a dedicated COO, you’ll find their concerns mirror many of the same issues as the CEO, CFO, and CTO, as well as your own concerns within HR.
Ultimately, they want to ensure the organisation invests in the right places at the right times to ensure continued operational strength. If you can show that this software is an important investment to both mitigate risk and carry the organisation forwards, sign off should be an easy ‘yes’.
The critical steps to gain COO approval for HR software investment
By aligning your proposed HR software investment with the COO’s priorities — operational efficiency, collaboration, productivity, working model adaptability, strategic alignment, scalability, and risk management — you can demonstrate its essential role in driving the organisation forward and mitigating potential risks. Present your case with clear evidence of how the software integrates with existing systems, enhances data accessibility, and supports the organisation’s broader objectives.
Unlock COO support for your HR software solution. Download our detailed guide today or schedule a consultation with our experts to streamline your strategy and maximise software impact. Let’s empower your HR initiatives for success.