What is a Chief Operations Officer (COO)?

A COO is a C-suite or senior-level executive who works closely with the CEO and chief financial officer (CFO). The COO is in charge of overseeing a company’s existing operations at an administrative level. Unlike a CEO, who is generally concerned with the company’s big picture outlook, a COO focuses on executing the organization’s business plan. 

In other words, COOs take the strategy developed by a CEO and implement it, ensuring all levels of the company align with the business model. For this reason, COOs are more concerned with internal than external affairs. 

Related: How to Hire a COO

Responsibilities of a COO

What does a COO do? The truth is a COO’s role can vary depending on the company. 

In addition to managing daily business operations, COOs will analyze company performance and identify any areas of improvement. They may even alter strategies or design new processes to ensure the organization meets its goals.

On the interpersonal side, COOs will work closely with other C-level executives and senior management to encourage all employees to strive for company goals. They may also collaborate with HR to develop core teams and implement employee policies and training. 

Because any company’s needs are diverse, the most successful COOs are multifaceted. This makes them suitable to handle the wide range of issues that may arise during day-to-day operations.  

When do companies need a COO?

Not every company needs a COO. In some cases, the CEO may be able to innovate and implement ideas, thus minimizing the need for a separate role. However, there are some instances where adding a COO to the team can benefit a company overall. 

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 more of 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. 

The average salary of a COO

A COO’s salary will vary depending on the size of the organization. COOs are usually one of the highest-paid employees of a company. According to the U.S. Bureau of Labor Statistics, the average salary for a chief operations officer was $179,520 in 2021. The level of experience and industry knowledge required, along with the high-pressure nature of the job, makes it one that comes with a hefty paycheck. 

Skills every successful COO has

As senior executives, COOs are faced with countless challenges day after day. To ensure the company’s needs are met, it’s important for every COO to have a wide range of skills. Some abilities that make up a successful COO include the following:

• Strong leadership skills: As the second in command, a COO should be a strong, capable leader capable of managing all aspects of a business.
• Team-building: Teamwork is a key ingredient in company productivity. A COO should know how to build a cohesive team and implement strategic policies. 
• Conflict resolution: Conflict is in any workplace. A COO should be skilled in diffusing contentious situations to create a safe, harmonious working environment.
• Decision-making: During their career, a COO will make many decisions for the company and its employees. They should be able to make decisions that are strategically beneficial to the company and in an expeditious manner.
• Public speaking: COOs are often seen as the face of internal affairs. They should be comfortable, clear and confident when speaking to employees, senior executives, clients and investors.
• Interpersonal relations: Interpersonal skills are essential for cultivating respect among peers and employees. A COO should be able to build connections with managers in every department. 
• Communication: Communication is key to implementing policies and company expectations. A COO should be able to communicate well with the CEO, other executives and employees.
• Strategy: A COO should know how to develop and implement strategies to achieve short and long-term goals. 

How much education does a COO need?

While there is no official degree requirement, those with a master’s in business administration (MBA) degree generally have an edge over those with a bachelor’s in business administration (BBA) degree. A master’s degree shows dedication to the field and the ability to set and achieve long-term goals. Additionally, an extensive education can signal a breadth of technical know-how. 

Work experience is as important as a solid education. Any COO should have exceptional people management skills, most of which come from hands-on experience. 

Related: How to Write a COO Job Description

The seven roles of a COO

The role of a chief operations officer is a multifaceted one. A COO will be expected to wear many hats throughout their career; here are seven shoes they’ll need to fill:

1. The executor: As an executor, a COO will focus on the internal operations of the business to implement effective company strategies. 
2. The change agent: A COO may be brought into a company to make substantial changes to its operations. They may lead a specific initiative for the company, such as continued expansion or interdepartmental change. 
3. The mentor: A COO may even mentor incoming or inexperienced CEOs and other high-level employees.
4. The other half: A COO should be able to complement the CEO and may have a different skill set or background. 
5. The partner: A COO may share responsibilities with the CEO and oversee the business as part of a mutual partnership.
6. The heir apparent: A COO may be trained by a current CEO to eventually assume their position. This is usually a part of the succession plan for a CEO who is leaving the company and prepares the COO to take this executive role.
7. The MVP: A COO may be a high-level employee promoted to the COO position to avoid losing them to a competitor. 

COO vs. CEO: Finding a balance

Where the CEO is concerned with a company’s goals, the COO is focused on how it’s going to achieve them. While their roles differ, the CEO and the COO will spend much time working together. Here’s how they can strike the right balance and form a cohesive executive team:

1. Provide undivided attention: The CEO and COO benefit from the other’s undivided attention. With so much to juggle each day, each role needs to dedicate even a few minutes to meet can enhance communication. 
2. Form a clear line of demarcation: It’s important to establish who does what at the beginning of the relationship to avoid responsibility overlap. Doing so will alleviate friction and misunderstanding, especially if both executives have similar backgrounds. 
3. Eliminate back door access: The COO serves as the layer between the CEO and other senior executives. Eliminating back door access prevents employees from circumventing the COO’s position. 

Frequently asked questions about COOs

Here are some FAQs to improve your understanding of the role of a chief operations officer. 

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. 

Does the CFO report to a COO?

The chief financial officer (CFO) is another C-suite executive and reports to the CEO. 

Can a COO go by a different title?

“Chief operations officer” is the most common name for the COO role. However, some companies may opt for a different moniker. Some other titles a COO can go by include:

• Vice president of operations
• Director of operations
• Chief operating officer