When One Title Isn’t Enough

The Rise of Hybrid CFO/COO in SMB's

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Takeaways

• More SMBs are combining CFO and COO roles to control costs and streamline leadership.

• A CFO can step into COO duties, or a COO into CFO responsibilities — but only if the individual is unusually talented and driven.

• Success also depends on deputies: a business-savvy Controller and a capable Director of Operations.

• Our observation from working with executives across KC: blending roles can work, but the risks are high if talent, structure, and pay are not aligned.

 

Why SMBs Are Blending Roles

Owners of small and mid-sized firms often see a combined CFO/COO as a way to simplify leadership and avoid paying two senior salaries. On paper, it makes sense: one executive who knows the numbers and manages the operations.

In practice, though, these hybrid roles require exceptional talent. Not every CFO has the operational instincts to run supply chains or workforce execution. Not every COO has the financial acumen to manage capital markets or compliance. As we’ve observed in our dealings across Kansas City, only a small subset of leaders can successfully straddle both roles.

 

The Hidden Risks of Hybrid Leadership

• Role Dilution – Without a clear scope, the hybrid leader ends up spread too thin.

• Talent Misfit – It takes a uniquely skilled CFO to act as a COO, or a driven COO to take on CFO responsibilities. If that fit isn’t there, performance drops quickly.

• Bandwidth Pressure – Even capable hybrids rely on deputies. Without strong support, the executive is dragged into detail and loses focus on strategy.

• Pay Misalignment – Titles alone don’t define value. Without weighting, compensation often underpays judgment or overpays machine-assisted work.

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​​​​​​The Critical Factor: Deputies and Structure

In SMBs, the model only works if the hybrid leader is surrounded by strong deputies:

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• On the finance side: A business-savvy Controller or Director of Accounting who keeps the books accurate and supports analysis.

• On the operations side: A Director or Manager of Operations who owns daily execution and partners with the hybrid leader.

Even then, structure matters. As one KC executive told us in a recent conversation, “The role only works because I have lieutenants I trust. Without them, I’d be underwater.”

 

Lessons From KC Firms

Some firms describe the hybrid as a bridge solution — sustainable for a season, provided the executive is unusually capable and deputies are strong. Others admit the model failed when they tried to stretch talent beyond its limits. The common thread is clear: combining roles can create leverage, but it is also fraught with danger if leadership and support aren’t carefully matched.

 

Compensation Considerations

The smartest approach is weighted role analysis:

• CFO duties: forecasting, compliance, and capital strategy.

• COO duties: process efficiency, supply chain oversight, execution.

• Support layer: Controllers and operational directors who absorb detailed work.

 

By assigning weightings (e.g., 70% CFO, 30% COO) and benchmarking accordingly, compensation becomes fair and defensible. Without this analysis, firms risk underpaying exceptional leaders or misaligning incentives.

 

What SMB Leaders Should Do

• Be realistic about talent – not every CFO can be a COO, and not every COO can manage finance.

• Invest in deputies – strong Controllers and Operations Directors are non-negotiable.

• Weight responsibilities for pay – avoid shortcuts; analyze the true scope.

• Revisit often – hybrid structures are usually temporary; plan for when scale requires separate roles.

 

Key Takeaway

Hybrid CFO/COO roles can work, but only with exceptional talent at the top and strong deputies beneath them. In our experience across Kansas City, trying to merge two executive roles without that alignment is one of the riskiest experiments an SMB can attempt.