What does a COO do?

A COO oversees the daily operations of your business. They work alongside the chief executive officer (CEO) and chief financial officer (CFO) to implement the company’s business plan and strategic plan throughout the organization.

The specifics of the COO role can vary considerably by company. In an accounting firm, the COO might focus on internal departments such as human resources or IT. In a large automotive facility, they might coordinate different areas of operation, including production, design and sales.

Here are some typical responsibilities to consider for your COO position.

1. Implement high-level strategy

The COO implements the CEO’s strategy. They analyze the operation and identify ways to support the company’s long-term objectives. Then, they collaborate with other company leaders and department heads to put those plans into action.

For example, if the CEO wants to expand into new states within five years, the COO might analyze the market, identify ideal sites and build new branch locations. If the business wants to improve customer satisfaction, the COO might work with the design, sales, marketing and customer service teams to build a better customer experience.

Because strategy is different from company to company, this part of the COO role is highly variable.

2. Manage company operations

One of the most important responsibilities of a COO is overseeing everyday operations. They ensure that each part of the business is running smoothly.

The COO typically approaches operational oversight from a high level. They collaborate with managers to ensure that each department’s activities align with the company’s overarching goals and priorities. They also develop and implement procedures that improve efficiency, productivity or cost-effectiveness.

In some cases, the COO might provide guidance for problem-solving and conflict resolution. If a key piece of equipment fails and stops production, for example, they might help coordinate an efficient response.

3. Coordinate and integrate departments

As the head of operations, the COO ensures that departments are aligned with each other. They facilitate communication between department heads to encourage information-sharing and coordination. They may also allocate resources fairly, standardize procedures to increase consistency and create frameworks that support cross-functional collaboration.

By integrating different departments, the COO resolves issues that can reduce efficiency. They break down information silos, prevent redundancies and reduce the risk of delays. This process helps create conditions that support innovation.

4. Monitor company performance

The COO monitors the performance of individual departments and the business as a whole. They might track key business metrics, analyze data and check benchmarks. Many COOs also use external data to watch trends and forecast shifts in the market.

Based on this analysis, the COO identifies opportunities for improvement within the business. They develop strategies to address performance gaps and work with managers and department heads on implementation.

5. Manage and mitigate risk

As the head of operations, the COO is responsible for identifying potential risks. This includes both internal and external factors that could disrupt the company.

Once the COO identifies a risk, they find ways to mitigate the impact through policy development, standard operating procedures and other controls. They might also collaborate with other company leaders to implement risk-management strategies.

In a manufacturing facility, for example, the COO might identify supply chain disruption as a significant risk. They would then work with the supply chain manager to adjust the company’s inventory management strategy and develop a more diverse and agile supply chain.

In some cases, risk management overlaps with compliance. COOs in tightly regulated industries may develop the policies that govern compliance activities.

6. Manage company growth

The COO often plays a key role in a company’s growth. They’re responsible for ensuring that operations can scale effectively without sacrificing efficiency or quality.

When the CEO wants to grow the business, the COO manages the practical factors. Depending on the specific growth goals, they may make recommendations for opening new branches, expanding to new audiences or creating new products.

Once a growth plan is complete, the COO takes control of the operational requirements. For example, if the company plans to expand the product line, the COO would adjust operations to accommodate the new item. This might include building new infrastructure, expanding the company’s technological systems or bringing in new workers.

7. Drive operational change

When a company is undergoing a significant change, it may hire a COO to drive the process. This person is responsible for leading the practical shifts in operations, culture and management.

Whether the business is undertaking a digital transformation or shifting to a new business model, the COO is the point person. They interpret the CEO’s vision, set goals and determine the necessary operational shifts. Then, the COO develops a structured change management strategy and works with company leaders to make sustainable shifts.

The COO manages operational changes through to completion, ensuring every initiative is finished. Once the organization has pivoted successfully, the COO monitors performance and measures the impact of the changes.

8. Implement new technologies

Technology helps many modern businesses stay competitive, and the COO is often responsible for selecting and implementing new systems. Whether they’re revamping the technology infrastructure or conducting a full digital transformation, this executive leads the process and ensures the result aligns with the company’s goals.

The COO’s influence on corporate technology varies by organization. When technology is integral to operations, however, they’re often directly involved in selection, optimization and monitoring.

9. Build company culture

In some organizations, the COO is deeply integrated with the company culture. They help build a healthy culture that aligns with the company’s core values.

The COO finds ways to embed culture into the company’s operations. If the business values diversity and inclusion, for example, the COO might work with HR to remove bias from the recruiting, hiring and performance review processes. They might also promote fair pay structures and a transparent promotion schedule.

Although the COO doesn’t always interact directly with the workforce on a daily basis, they have a great deal of influence on the employee experience. They ensure that the company’s systems, policies and practices reinforce company culture. In a company that prioritizes work-life balance, the COO could set achievable productivity expectations or support flex time and asynchronous work arrangements.

10. Develop leadership candidates

Operational success depends on putting the right people in the right roles. The COO helps ensure operational continuity by identifying and developing future leaders. They might also participate in succession planning for key roles and serve as mentors for executives in training.

As the company evolves, the COO examines the business strategy and identifies the current and future positions that are necessary for success. Then, they collaborate with HR to develop a talent strategy for recruiting and hiring the right candidates. This might include creating a leadership development program to cultivate internal talent.

11. Support or succeed the CEO

The COO is often the second-highest-ranking executive in a business, next to the CEO. They’re responsible for translating the CEO’s vision to the company’s operation, but they also provide valuable collaboration and support. The COO often works with the CEO to set the direction of the company and make critical business decisions. To maximize this partnership, companies often hire COOs whose skills complement the CEO’s.

Some companies use the COO position to prepare a candidate to move into the CEO role. A COO’s in-depth knowledge of company operations can help them make better decisions as the company’s top executive.

FAQs about COOs

Here are some FAQs to improve your understanding of the role of a COO.

Who does the COO report to?

Although the CEO and COO work closely together, the CEO is the head of the company. As the second-in-command, the COO reports to the CEO.

What skills does a successful COO need?

Successful COOs often have a wide range of skills, including:

• Leadership: As the second in command, a COO is typically a strong leader capable of managing all aspects of a business.
• Team-building: A COO must know how to build a cohesive team.
• Conflict resolution: A COO can often de-escalate tense situations and create a safe, pleasant working environment.
• Decision-making: COOs need to make efficient decisions that benefit the company strategically.
• Communication: COOs often represent internal affairs, so they usually need to be comfortable, clear and confident when communicating with employees, senior executives, clients and investors.
• Interpersonal relations: Interpersonal skills help a COO build respect and create connections with managers in every department.
• Strategy: COOs need to think strategically to find ways to improve operations and help the company achieve its objectives.

Can a COO go by a different title?

In addition to the “COO” title, this professional may also be called the vice president (VP) of operations or the director of operations.

When do companies need a COO?

Your company may benefit from a COO if:

• The CEO spends too much time developing strategies that will drive the company forward.
• The CEO is a visionary and needs help implementing their ideas on a wider scale.
• The company is in need of a leader who can inspire employees and optimize performance.