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chief operating officer (COO)

By Nick Barney

What is a chief operating officer?

A chief operating officer (COO) is the corporate executive who oversees ongoing business operations within the company. The COO reports to the chief executive officer (CEO) and is usually second-in-command within the company. Alternative titles for the COO include chief operations officer, operations director, director of operations and vice president of operations.

A COO is a member of the C-suite, a term that describes a company's senior executives, including the CEO and chief financial officer (CFO), who often work collaboratively. COOs are found in various industries including business, government and healthcare. While a COO's responsibilities vary based on the industry they're in, their basic duties usually include overseeing an organization's daily operations.

Responsibilities and duties of the COO

The role of the COO varies from one industry to another and even from one company to another. The one constant is the COO's close relationship with the CEO, who is often responsible for defining the COO's role.

Examples of COO responsibilities include the following:

Types of COOs

The various types of chief operating officers reflect the individual's leadership style. There are generally thought to be seven different types of COOs.

The COO and the CEO

A COO is second in command to the CEO, who is the top executive at a company. While the CEO is responsible for an organization's long-term success, the COO is usually responsible for the day-to-day operations. Therefore, a COO's success hinges on their relationship with the CEO.

According to Second in Command: The Misunderstood Role of the Chief Operating Officer by Nathan Bennett and Stephen A. Miles, absolute trust and respect between the two executives is vital or else the relationship can become dysfunctional.

The COO role adds complexity to a company's reporting structure. As such, COOs tend to be employed by the largest organizations, essentially freeing up time for the CEO to focus on long-term business strategies and challenges rather than operations. Smaller organizations and startups that introduce a COO into the reporting structure risk creating power struggles and confusion among employees, according to some management experts.

The COO is often seen as the heir apparent to the CEO. There are a number of high-profile examples of COOs moving into the CEO job, including the following:

The state of the COO

Some management experts have said the COO position is in declining in importance because of C-suite changes such as fewer CEOs serving as the chairman of the board of directors for companies. This freed up modern CEOs to perform some of the duties formerly given to their COOs, making COOs unnecessary.

However, according to the 2022 "Volatility Report" by executive recruiting firm Crist Kolder Associates, the position of COO is making a comeback. According to the report, the percentage of companies with COOs has risen from a low of 31.9% in 2018 to 39.6% in 2022, the highest percentage in a decade.

There are several reasons this is happening.

Key qualifications for a COO

The following are key qualifications needed to obtain a COO position:

How to become a COO

It often takes over a decade of experience to become a COO. The key steps involved in following this career path include the following:

Chief operating officers are important members of the C-suite. Learn how other members of the executive management team, like chief information officers are evolving.

30 Jan 2023

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