I like to say that a business owner is in charge of their company’s overall direction, and their Chief Operating Officer (COO) is in charge of how the company will get there. In other words, the owner or founder has the vision – and the COO brings it to life.
The business owner is responsible for setting the overall direction of the company and makes decisions with the long-term success of the business in mind. At some companies, depending on the size and structure, the owner may take the title of President, Founder, or Chief Executive Officer (CEO).
The Synergy Between the Roles of the Owner and COO
The owner develops a plan based on their big-picture vision for the company and works hand-in-hand with the COO to execute that plan. Second-in-command to the business owner, the COO is responsible for developing and implementing policies and plans to ensure that operations support the owner’s vision. The COO is generally responsible for overseeing day-to-day operations, processes, and strategies, but the specifics of the role may vary according to the needs of both the owner and the organization.
Many small businesses do not initially have a COO, and the business owner juggles multiple responsibilities. However, as companies grow and have more complicated processes and procedures, they often need to hire a COO – or outsource the role to an experienced virtual COO – to advise the owner and manage operations.
COOs typically handle internal affairs, while business owners focus on external affairs. The business owner often chooses to be the face of the company, and is the one who seeks outside funding or brings in new sources of revenue.
Business owners rely on their COOs to not only keep an keep an eye on daily operations, but to provide insights and recommendations for changes and improvements. While the COO collaborates with departments throughout the organization to ensure maximum performance and implements policies, they are also charged with developing strategies for increasing efficiency and productivity and generating additional profits. Although COOs can make their own decisions on matters under their authority, the business owner has the power to challenge and override such decisions as they see fit. The owner will always have the final say.
The business owner and the COO both have high-level responsibilities that affect the success of the business. And there must be complete trust and respect between them in order for them to serve the company’s best interests.
