Chief Operating Officer Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a chief operating officer. Feel free to use our chief operating officer job description template to produce your own. We also provide you with information about the salary you can earn as a chief operating officer.
Who is a Chief Operating Officer (COO)?
A chief operating officer (COO) is a corporate executive in charge of overseeing the operational functions of a business, which might include staffing, administration, and company strategy. A COO, sometimes called the ‘executive vice president of operations or the ‘operations director’, is often the second in the chain of command after the chief executive officer (CEO) (CEO).
A COO is a member of the ‘C-suite’ which refers to the C-level executives making up a company’s management team, which also includes the CEO, the chief financial officer (CFO), chief information officer (CIO), chief marketing officer (CMO), and the chief technology officer (CTO) (CTO).
The main difference between a CEO and a COO is their ranking within the company. The COO reports to the CEO, the highest-ranking member of the organization. The CEO is also considered the head of the company and will have the final say in the direction of the business. Though COOs have tremendous authority to make their own decisions on matters within their purview, the CEO will still be able to change or even veto their recommendations.
Some companies will not have or necessarily need a chief operations officer. In startups and small business administration, the CEO will usually perform the functions of a COO as well, which will help them stay close to the daily operations as their company grows.
Your typical vice president or director of operations is focused on leading, managing, and running the operations arm of a company. Though operations might be one of the most diverse functions of a company, this position still has a singular focus. When this operations position reports directly to a CEO, many are often confused as to the true role of the position. Normally, the CEO is expecting COO-functionality, yet these positions are not normally capable, nor are they appropriately compensated for that functionality.
All other C-suite positions — like the chief financial officer or chief information officer — are also singularly focused on their specific function. These positions generally know the strategic, operational, and tactical aspects of their function and how they support the company. However, individually, they typically do not know how all of the positions fit together.
It is the word “operating” that truly sets the COO apart from others. A COO knows how everything — every function in a company — strategically, operationally, and tactically works together to deliver its products and services effectively and efficiently. This position combines the company’s strategic and business plans with its business operating system, its operating model, and its organizational structure. This is why the word “operating” is so important in this position’s title. Even though the COO may not be an expert in all things finance, technology, and sales, they understand each area deep enough to know how they work together. They recognize that all companies are a system of systems that need to function in concert with one another to run well.
Also, the COO is an expert at operations because this is where a company’s products and services are created, perfected, delivered, and serviced. Every other function in a company should be focused on ensuring the operations function can operate at its optimal level.
There are a lot of factors that come into play when considering the need for a COO. The first factor is the company’s size and revenue. This is one of the main reasons that a fractional COO might be a smart option. The right COO is an expensive position, with a high salary, benefits, and bonuses. If your company is not big enough or does not make enough money, you cannot hire the right talent.
Sometimes, the CEO or president fills the role of a COO. The biggest concern in this situation is that the CEO is filling the role of visionary and integrator. This is one way that they get sucked into working “in” the business and not “on” the business.
When a COO does not exist, but a president does, the president typically falls under a CEO and runs the business. However, this does not mean that the COO and the presidents are the same. In a particularly large company, there may be a COO with presidents overseeing different arms of the company.
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. A large part of that experience is in operations — they typically know program and project management, process improvement, and change management very well.
Good COOs are very accomplished leaders, having managed across many different companies and organizations. Most good COOs have experience in business coaching, consulting, and owning their businesses. This experience has equipped them with critical skills in finance, human resources, information technology, marketing, and sales. Additionally, effective COOs have a strong background in business education, training, and certification. Due to the position’s rarity, there are very few COO-specific education programs. Additionally, the programs that do exist today are tens of thousands of dollars in cost.
For these reasons, the COO position is one of the most elusive and misunderstood in business. If you understand the COO’s role and hire a good one, they can add significant value to your business.
The chief operating officer’s job is entirely focused on the CEO’s desires and requirements. Whatever operational tasks must be completed, the COO ensures they are completed. Typically, this entails collaborating with the heads or teams of overseers assigned to each department (e.g., IT, finance, marketing). Each department’s managers then further break down tasks and projects to ensure they are completed on time and within budget. A COO is accountable for ensuring that all departments work cooperatively to keep the business’s operations on track.
Frequently, the chief operating officer meets with the heads of each department to ensure that operations run smoothly and that any issues are addressed promptly. Additionally, the COO serves as a liaison between department heads, ensuring that they communicate with one another when a project requires the collaboration of multiple departments.
Because the chief operating officer position is complex and stressful, they typically earn a six-figure annual salary. It requires an individual with the necessary education (typically a business degree) and organizational abilities to assist a business in running smoothly. The ability to meet and work closely with a company’s CEO is also necessary for success as a COO.
Chief Operating Officer Job Description
Below are the chief operating officer job description examples you can use to develop your resume or write a chief operating officer job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a chief operating officer include the following:
- Developing and executing business strategies, policies, and procedures
- Establishing performance and growth objectives
- Managing cross-functional teams of functional leads (Marketing, Sales, IT, HR, etc.)
- Fundraising and relationship development with investors, as well as assisting with business expansion opportunities (e.g. mergers and acquisitions)
- Creating policies that advance the company’s culture
- Assisting the CEO in ensuring that business objectives and goals are met
- Serving as a liaison between the CEO and senior executives
- Establishing corporate policies that promote productivity and efficiency
- Encouraging employees to achieve goals that are consistent with the organization’s vision
- Analyzing business performance and identifying areas for improvement
- Coordinating budget and resource allocation with other C-level executives and senior management
- Assuring that employees receive adequate training
- Additional critical tasks include the following:
- Hiring and staffing
- The COO of a business is responsible for all human resource and staffing functions. They are accountable for establishing and maintaining a company’s recruitment standards, as well as the human resources department’s internal policies. The human resources director of business reports to the chief operating officer.
- Developing and enforcing a company’s standards
- In most cases, the COO is responsible for implementing the business plan, which is a written document that defines a business’s objectives and how it will achieve them. Additionally, they are accountable for developing a company’s strategy in the broader marketplace.
- Budgeting and accounting
- A COO is accountable for the financial operations of a business. They are typically in charge of making high-level decisions regarding a company’s budget and accounts, with the financial departments reporting to them.
- Supervising administrative functions
- The chief operating officer of a business is responsible for implementing and monitoring the business’s operational functions, which include administrative activities. Individuals responsible for office operations may report to a company’s COO.
- Successor to the CEO
- The COO frequently serves as an information conduit between the CEO and the rest of the company. They are also the company’s second-in-command, which means they will succeed the CEO if they are unable to fulfill their responsibilities.
Qualifications
A COO must have a strong educational background and relevant work experience. While a specific degree is not required, those with an MBA may have an advantage because it demonstrates superior business and financial acumen. However, experience is also a necessary asset.
COOs must have a thorough understanding of all of the roles, either through formal education or direct experience. Additionally, they must possess exceptional people management abilities. Their breadth of knowledge qualifies them as a jack-of-all-trades, which serves as an excellent frame of reference.
Essential Skills
- Organization, administration, and leadership skills
COOs are responsible for a variety of daily operations, including those of each of the business’s departments. This requires the COO to organize all of these activities and operations accurately and efficiently to support business strategy and align with clients’ or customers’ needs. Additionally, the COO must effectively administer guidance and direction to the human resources, legal, and other departments that report to them, emphasizing the critical importance of strong leadership skills.
- Result-oriented and goal-oriented
Successful COOs are also extremely goal-oriented, aiming to accomplish not only the day-to-day objectives that support the business’s daily operations but also the CEO’s larger goals. As The Balance notes, this goal-oriented approach should be balanced against the requirement for results. In other words, the COO should demonstrate and prove to the CEO and other senior executives how their strategy is being implemented.
- Delegation and decision-making
COOs will make frequent decisions regarding the best way to direct the company’s daily operations. This may include addressing any operational issues impeding progress in the short term, as well as collaborating with the CEO to address any long-term operational issues. Along with strong decision-making abilities, COOs must be adept at delegating tasks to subordinate department heads and supervisors. This delegation and separation of responsibilities maximizes efficiency and prevents a single professional from taking on too many operational responsibilities.
- Multitasking and critical thinking
Frequently, the COO must strike a balance between the goals, needs, and challenges of the company’s various departments. Striking this balance requires the COO to exercise critical thinking and prioritize the needs of department supervisors while also considering the CEO’s strategic goals and direction. Additionally, because the COO is responsible for the daily operations of the business’s primary departments, he or she must multitask and balance these responsibilities.
How to Become a Chief Operations Officer
The path to becoming a chief operating officer (COO) varies by industry and may also depend on the type of corporation for which you wish to work. There is no one-size-fits-all approach to obtaining this position, but you will typically require a bachelor’s degree in business administration in addition to extensive work experience. Following graduation, you’ll need to find work in an industry that interests you. It is then necessary to differentiate yourself by performing well and demonstrating leadership abilities to advance to a vice president (VP) position within the corporate structure. Because many people within a corporation desire this position, you will need to demonstrate that you possess the knowledge and expertise necessary to assume responsibility for daily business operations.
In a typical corporate structure, the chief operating officer is the executive who is accountable for the company’s day-to-day operations. Details and minutiae, such as production quotas, are typically within a chief operating officer’s purview. Vice presidents or other department heads frequently report to the chief operating officer, who in turn reports to the chief executive officer (CEO). Since many CEOs are preoccupied with high-level, strategic management, the COO frequently has some discretion over day-to-day business practices.
Although a chief operating officer is not required to have a business degree, many of these executives do. If your ultimate goal is to become a chief operating officer, you should first earn a four-year degree in business administration. You can then enter the corporate world directly or pursue internships and other opportunities while pursuing an MBA. Knowing the right people can also help advance a business career, and many graduates from prestigious universities end up in leadership positions.
It is possible to advance up the corporate ladder from virtually any position, and some began as engineers, manager trainees, and even sales representatives. Regardless of your starting position, you should strive to advance through the ranks and into your department’s management sector. Additionally, you may have to change employers at some point, as competition for executive positions is typically fierce and some companies offer better opportunities than others.
Where to Work as a Chief Operating Officer
COOs work for government agencies, charitable organizations, educational institutions, and a variety of businesses.
Chief Operating Officer Salary Scale
In the United States, the national average salary for a Chief Operations Officer is $128,264 per year.