The Making Of A Chief Operating Officer
by Admin
Posted on 19-09-2023 02:21 pm
Every successful business requires vision and a robust operational plan to execute that vision. In a well-run business, these two parts are intertwined but are carried out by at least two people with very different skill sets: the chief executive officer and the chief operating officer. While a ceo’s role is widely recognized and understood, a coo is often overlooked as second in command to the ceo. However, their role is much more complex than this. So, what is a coo, and how can they serve you?
the coo is responsible for ensuring the company's day-to-day operations align with the company’s vision and goals.
If a company has a chief operating officer in place, this individual likely knows the ins and outs of the business and industry and is often responsible for making sure the company’s operational model is functioning properly. The coo needs to know how key functions of the company (including product, finance, marketing, service) all work together to deliver a positive experience for the customer while reaching key business goals. In 2021, the average base salary of a chief operating officer was $145,467 per year , though this figure can vary depending on the company and the experience level of the candidate.
What Is A Chief Operating Officer?
Because the coo role can vary according to the internal structure and needs of the organization as well as the work of the ceo and other senior executives, responsibilities are not the same for coos from company to company.
In this context, there are seven different types of roles that a coo can align themselves with, based on their mission. These seven types of coos are defined in the 2006 harvard business review article, “second in command: the misunderstood role of chief operating officer,” written by authors nathan bennett and stephen miles. But, as kaplan executive research and several other sources agree, these seven roles are just as relevant today as they were more than two decades ago.
The bls predicts there will be about a 6% decline in chief executive jobs between 2020 and 2030. This includes coo, cfo, and ceo positions. This negative job outlook doesn't reflect the situation for top executives more generally. Top executive jobs are expected to grow about 8% in the same time, putting the career category on par with the broader job market.
A coo, or chief operating officer, is a top executive responsible for overseeing the day-to-day operations of an organization. They work closely with the ceo and other senior leaders to execute the company's strategic plans and ensure the efficient functioning of various departments and processes. The coo focuses on operational excellence, resource management, and cross-functional collaboration to drive the organization's success. The role of a coo can vary depending on the organization and industry. Generally, the coo's responsibilities may include managing operational budgets, optimizing business processes, monitoring key performance indicators, and ensuring effective utilization of resources. They collaborate with department heads to align strategies, drive operational efficiency, and enhance productivity.