Chief Operation Officer

chief operating officer meaning

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.

The COO typically reports directly to the chief executive officer and is considered to be second in the chain of command. To become a COO, guide a business’s daily operations and report to and support the CEO and senior executive team, there are certain skills and educational requirements that students should strive for. Although a senior executive role like COO is highly sought after for many business administration students, like any professional function, it does come with its share of challenges and obstacles. However, with the right skills, characteristics and education, professionals can become successful COOs and enable the prosperous operations of their employer organization. Steven Reinemund, now chairman and CEO at PepsiCo, gave us his thoughts on the challenge.

Although it sat idle for several years after Rick Belluzzo’s departure, it was revived when Kevin Turner was hired. Certainly, being identified as a likely heir does not represent anything approaching a guarantee. On the one hand, an otherwise valuable senior executive may leave if the top job ultimately goes to someone else—or isn’t offered soon enough.

Academic Research On Chief Operating Officer

The COO position is most common in larger organizations, where the CEO does not have sufficient time to adequately address all operational activities. In this situation, the CEO is more concerned with governance and strategy issues, leaving day-to-day concerns to the COO. A chief operating officer is the second-ranking executive job position in a company.

chief operating officer meaning

In a typical setting, the entrepreneurial experience that the COOs possess is usually more than the CEO. This is because the CEO only develops plans, while it is the COO who is supposed to oversee the implementation of these plans. The COO is also supposed to support the human resource to come up with a strong team.

Переводы Chief Operating Officer

Most organizations recruiting professionals for the role of COO will not consider candidates who don’t have a master’s degree in business administration. Earning an MBA can put students in a beneficial path to pursuing executive-level roles like the COO.

We offer a full range of hiring and recruiting solutions for every step in the process. We’ll help you find and engage the right candidates, build your brand, and make even smarter decisions with LinkedIn’s data and insights. Perhaps that’s why COO is the only C-suite title to which there is no magazine devoted. It’s a trivial observation but perhaps a telling one; the common set of issues and interests that would imply simply does not exist. Along with broad work experience and confidence, COOs need to fit into the culture of the company. This makes staff communication easier, and it reduces the friction that comes from having a new boss. High energy consumption continues to be an issue in the data center, but organizations are moving to energy-efficient systems to …

chief operating officer meaning

Seasoned investors or newbie traders, our financial education corner has something for all. Because the role and responsibilities of a COO can change according to the goal of the CEO and executive team, the compensation for the role is similarly flexible. Overall, however, the COO supports and complements the role of the CEO. As TechTarget contributor Margaret Rouse explains, the COO functions similarly to the role of U.S. vice president, in that the role of president is highly dependent upon the vice president. In some organizations, the COO also oversees and supervises the operations of the human resources and legal departments. This is common in organizations where the COO structure is an internally facing job. The deputy secretary of housing and urban development, in the United States government, is the chief operating officer of the United States Department.

Comparing Similar Jobs

Gearing your resume in this way can also reveal other areas in which you may need to broaden your experience before applying for COO jobs. Foster a growth oriented, positive and encouraging environment while keeping employees and management accountable to company policies, procedures and guidelines. And general manager for the Trump National Golf Club – and George Ross who was the executive vice president and senior counsel for the Trump Organization. One of the other reasons that you do not see a lot of COOs out there is that it is tough to become one. A good COO has at least 13 to 15 years of experience and great ones have more than 20 years of experience.

This makes finding suitable candidates difficult for executive recruiters . More important, it stymies the CEOs and boards who must select among the candidates. The existence of seven different roles suggests at least seven different sets of attributes on top of the basic—and infinitely variable—requirement that there exist a personal chemistry between the COO and the current CEO.

Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. As COO is responsible for the Company’s operation, they rely on data for making any decision.

  • Smaller organizations and startups that introduce a COO into the reporting structure often create power struggles and confusion among employees.
  • Ernst & Young, a professional services firm, argued that compliance, business transformation and the pursuit of new markets are all reasons companies need operational leaders.
  • He has no experience in the large-scale management a chief operating officer will perform.
  • On the other hand, the COO has a responsibility of overseeing the company’s daily business operations.
  • Finally, some companies offer the job of COO as a promotion to an executive considered too valuable to lose, particularly to a competitor.

Chief executives often travel to conferences, meetings, and different business units of their company. COOs and other chief executives work in every type of business, from small to large, with few employees or thousands of employees. Their work often involves a high degree of stress because they bear the responsibility of making the business successful. Drive company results from both an operational and financial perspective working closely with the CFO, CEO and other key executive team members.

Objectives Of This Role

To be considered for a COO position, one needs a combination of education and significant experience. Exceptional executive presence, business acumen and presentation skills. Forge strategic partnerships and relationships with clients, vendors, banks, investors and all other professional business relationships. Set challenging and realistic goals for growth, performance and profitability. Larger organizations tend to offer a high salary package to their COO compared to smaller organizations. Chief Operating Officermeans the individual whose position is defined under the job specifications for Executive Director.

  • Directly to the chief executive officer, but may also report to the chief operating officer or chief financial officer.
  • The COO will need to report to the CEO on daily operations, but will also consult with the rest of senior-level management on strategy.
  • Topfer joined Dell in 1994 and previously worked at Motorola, heading its land mobile products division.
  • The company, in Leonard’s words, was “running on fumes” and needed dramatic efforts to stave off bankruptcy.
  • Often, a business hires someone internally who has been working their way up the company ladder for 10 to 15 years.
  • Больше примеров He currently serves as deputy chief operating officer at News, with responsibility for the Fox TV stations.

Driving the company’s operating capabilities to surpass customer satisfaction and retention, and company goals. Spearheading strategies to steer the company’s future in a positive direction.

Are There Any Different Titles For A Coo?

A person who holds this title is the second in command, after the chief executive officer . Some organizations use the term, vice president of operations, instead of COO. Another title similar to COO is, Director of Operations, a title commonly used in Non-Profit Organizations . The daily responsibilities of the COO can be different, depending on the operational structure and needs of the company itself, as well as the industry in which it operates.

PricewaterhouseCoopers provided additional reasons for the decline in COO position, all of which suggest the trend is directly linked to how CEOs and how they’re managing the company. The list includes the advent of digital communications technologies, the board’s demand for CEOs to work closely with the business, the push to flatten the organization and the shift in succession planning. Thomas W. LaSorda served as president and CEO of Chrysler from January 1, 2006, to August 5, 2007, while Chrysler was owned by Daimler-Benz.

COOs oversee a host of daily operations, including activities related to each of the business’s departments. This means that the COO must accurately and efficiently organize all of these activities and operations to support business strategy and align with clients’ or customers’ needs. The COO must also effectively administer guidance and direction for the HR, legal and other departments that report to them, making strong leadership skills incredibly important. A Chief Operating Officer is a member of an organization’s executive team. With the proper training, experience, and skills, an individual can fill this role in a variety of organizations, such as a for-profit business, non-profit organization, government entity, or school. The COO typically has overall supervisory responsibility for all of the entity’s operations.

While the mandate is not as broad as the general execution of strategy, the magnitude of the challenge demands that the change-agent COO have a degree of unquestioned authority similar to that of an executor COO. Larry Ellison hired Lane from consultancy Booz Allen Hamilton and tasked him with turning around the deeply troubled sales and marketing organizations. His efforts ultimately contributed to a tenfold increase in sales, from $1 billion to more than $10 billion, and a threefold increase in net profits.

As per the Company’s established business model, the COO executes the business plan. While the CEO of a company is concerned with long-term growth and broader company outlook, the COO takes care of implementing the strategies. chief operating officer meaning A Chief Operating Officer is deemed as the second person in the chain of command who looks into the day-to-day business functions. Fleming has also served as chief operating officer for New Horizon Ministries, Inc.

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