A COO Should See the Problem Before the Owner Feels It

October 08, 2026•2 min read

One of the most valuable things a COO can do for an owner is identify a problem before the owner has to feel the pain of it. By the time the owner is hearing customer complaints, seeing cash tighten, or getting calls from frustrated employees, the operating issue may have been developing for weeks. A second-in-command should be able to recognize the early signals.

That requires more than walking through the stores and asking whether everyone is busy. Busy can hide a lot. A location can look active while labor productivity is sliding, gross profit is drifting, declined work is increasing, or payroll is growing faster than sales. A COO responsible for multiple locations needs a small set of meaningful numbers that help them see where leadership attention is required.

The skill is not simply reading a dashboard. The skill is connecting the number to the behavior that created it. If one store's labor performance changes, what changed operationally? If one location has a sudden drop in average repair order, is that a customer mix issue, advisor issue, inspection issue, or workflow issue? If payroll rises, did the store add needed capacity or lose productivity? Good operators use numbers to create better questions.

The COO also needs to know which problems belong with the store leader and which require their involvement. If the COO reacts to every red number by taking over the problem, store managers never learn to manage. A better approach is to use the data to coach the leader: What are you seeing? What do you think is driving it? What action are you taking? When will we review the result? That is how the COO protects the business while building stronger managers.

For the owner, this creates confidence. Instead of discovering problems by accident, the company has another leader watching the operating health of the organization. The owner should not need to personally inspect every store to know whether standards are slipping. The COO becomes the person who can see across the business, recognize patterns, and act early enough that small deficiencies stay small.

Do you like this kind of content? At Transformers Institute, we help multi-shop second-in-command leaders strengthen their ability to manage with numbers, coach location leaders, and create operational excellence across the company. If your owner still has to discover too many problems personally, schedule a discovery call with our team to learn more.


Fernando Miranda
Fernando Miranda is the Vice President at Transformers Institute and a seasoned automotive industry executive with over 25 years of experience spanning parts, services, sales, and full executive operations, including leadership roles with Fortune 500 companies. His proven ability to build high‑performing teams, solve complex problems, and teach strategic business principles helps automotive professionals elevate their careers and grow their businesses.
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