Chief Operating Officer

The chief operating officer (COO) is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business. The COO typically reports directly to the chief executive officer (CEO) and is considered to be second in the chain of command.

In some corporations, the COO is known by other terms, such as "executive vice president of operations," "chief operations officer," or "operations director."

• The chief operating officer (COO) is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business.
• The COO typically reports directly to the chief executive officer (CEO) and is considered to be second in the chain of command.
• Depending on the CEO's preference, the COO often handles a company's internal affairs, while the CEO functions as the public face of the company, and thereby handles all outward-facing communication.
• Skills required to be a COO include strong analytical, managerial, communication, and leadership skills.
• There are generally seven different types of COOs that are best suited for different situations and different companies.

The Role of a Chief Operating Officer (COO)

The COO mainly focuses on executing the company’s business plan , according to the established business model, while the CEO is more concerned with long-term goals and the broader company outlook. In other words, the CEO devises plans, while the COO implements them.

For instance, when a company experiences a drop in market share , the CEO might call for increased quality control, in order to fortify its reputation among customers.

In this case, the COO might carry out the CEO's mandate by instructing the human resources department to hire more quality control personnel. The COO may also initiate the rollout of new product lines, and may likewise be responsible for production, research and development, and marketing.

Responsibilities of a COO

A chief operating officer is responsible for the day-to-day operations of a company. Their responsibilities can include:

• Recruitment and hiring
• Financial operations
• Budget development
• Production oversight
• Executing business strategy

Keep in mind that the role of a COO may vary from company to company according to each firm's needs.

Depending on the CEO's preference, the COO often handles a company's internal affairs, while the CEO functions as the public face of the company, and thereby handles all outward-facing communication.

In many cases, a COO is specifically chosen to complement the skill sets of the sitting CEO. In an entrepreneurial situation, the COO often has more practical experience than the founding CEO, who may have come up with an excellent concept but lacks the start-up know-how to launch a company and manage its early stages of development.

Consequently, COOs often design operations strategies, communicate policies to employees, and help human resources (HR) build core teams.

Types of COOs

Every company is different and in a different stage of growth. A new company will have very different needs than a company that has been around for 100 years and has a large market share in its industry. Depending on the company, its needs, its cycle stage, and its unique characteristics, the specific type of COO required to help it realize its goals will vary.

There are generally seven types of COOs:

• The executor, who oversees the implementation of company strategies created by senior management and who has the responsibility of delivering results on a day-to-day basis.
• The change agent, who spearheads new initiatives and may be in charge of leading specific company turnarounds.
• The mentor, who is hired to counsel younger or newer company team members, such as a young CEO.
• The most valuable player (MVP), who is promoted internally to ensure they don't defect to a rival company.
• The "other half," who is brought in to complement the CEO and who typically has the opposite characteristics and abilities of the CEO.
• The partner, who is brought into co-lead as another version of the CEO.
• The heir apparent, who becomes COO to learn from the CEO in order to ultimately assume the CEO position.