Case Study: Chief Operating Officer

New Care is a successful human services agency, with national operations across three states of Australia. New Care provides services to children, disabled people and the aged. New Care has been in the process of restructure over the past 18 months under the control of the CEO. During this time the Quality and Risk Manager has been on sick leave. His condition has varied over time. He has diabetes and needs to retire. On medical advice he does so after a six-month absence.

The CEO and the Board of Directors decide that this is an opportunity to make some changes. They want to link the Quality Management role with an overall procedures role that may incorporate being the deputy CEO. The new role has been described as the Chief Operating Officer [COO]. This is an over-arching position that ensures all systems fit together and are monitored through a single monitoring process. During the absence of the sick QR Manager, the head of community operations acted in the role. She did a good job and she was complimented by others on how well she integrated the five different service areas.

The CEO had a discussion with the Board about the new position and how it should be advertised. Several board members talked about external advertising, so they could look at a selection of applications from the open marketplace. A couple also said this complied with the principle of fairness in the New Care charter of values. The CEO decided to discuss the situation with the person who had acted in the temporary replacement role. Her reaction was cold. She asked whether the Board had considered the signals that would be sent by following the external recruitment process. She outlined that it was firstly an ambiguous signal about her performance in the acting role with all the responsibility but none of the power to make changes. It was also a signal to internal staff that internal promotion was not valid, even though HR policies said this was a preferred process when there was a suitable candidate.

Her third point was that she might decide now is the time to leave and this would suddenly result in the loss of experience and wisdom over two positions, including the transition from Quality to Operations. The CEO thought about the situation. She did not want to lose internal talent with relevant experience especially when there was no guarantee that the external process would yield a suitable candidate. The CEO discussed the issue again with the Board. They agreed. The position was advertised internally. There was only one internal candidate for the role.

The CEO had a discussion with the Board about the new position and how it should be advertised. Several board members talked about external advertising, so they could look at a selection of applications from the open marketplace. A couple also said this complied with the principle of fairness in the New Care charter of values. The CEO decided to discuss the situation with the person who had acted in the temporary replacement role. Her reaction was cold. She asked whether the Board had considered the signals that would be sent by following the external recruitment process. She outlined that it was firstly an ambiguous signal about her performance in the acting role with all the responsibility but none of the power to make changes. It was also a signal to internal staff that internal promotion was not valid, even though HR policies said this was a preferred process when there was a suitable candidate.

Her third point was that she might decide now is the time to leave and this would suddenly result in the loss of experience and wisdom over two positions, including the transition from Quality to Operations. The CEO thought about the situation. She did not want to lose internal talent with relevant experience especially when there was no guarantee that the external process would yield a suitable candidate. The CEO discussed the issue again with the Board. They agreed. The position was advertised internally. There was only one internal candidate for the role.

Read the Case Study in section 2.1 of the Learner Guide.

What potential message is perceived by existing staff if New Care were to advertise externally for the Chief Operating Officer position?