The Chief Operating Officer, or COO, is a senior executive tasked with overseeing the day-to-day administrative and operational functions of a business. The COO typically reports directly to the founder, owner, or Chief Executive Officer (CEO), and is considered to be the company’s second-in-command. In some cases, the COO has the title of Executive Vice President of Operations, Chief Operations Officer, or Operations Director.

The Role of the COO

The role of the COO can vary from one industry to another and from one company to another. Sometimes a specific type of COO is hired to complement the skills of the business owner or CEO. For instance, in many small businesses, the COO is likely to have more practical operations experience than the founder or owner. Entrepreneurs are often terrific at generating brilliant ideas and getting new businesses off the ground, but they lack the know-how to manage long-term growth.

COOs focus primarily on executing the company’s business plan, while the owner or CEO is more concerned with long-term goals and the broader company outlook. In other words, the CEO develops plans and the COO implements them.

The COO’s Responsibilities

The specific responsibilities of a COO might include:

  • Managing day-to-day operations
  • Executing a company’s business plan
  • Keeping the CEO apprised of significant events
  • Collaborating with the CEO on important decisions
  • Creating business initiatives, operation strategies, and policies
  • Communicating business strategy/policy to employees and delegating projects
  • Fostering employee alignment with corporate goals and company culture
  • Human resource management
  • Overseeing production, research and development, and/or marketing

Depending on the owner’s preference, the COO might handle a company’s internal affairs, while the owner serves as the public face of the company and handles all external communication.

What to Look for in a COO

A COO typically has experience within the field or industry in which the company operates, but this is not absolutely essential. What’s more important is that they have cultivated expertise in business practices, policies, and procedures over the course of their career.

Because they are traditionally responsible for directing multiple departments, COOs must have an understanding of finance, marketing, and IT infrastructure, and be skilled in areas such as business development, fundraising, and interpersonal communication. They must also be creative problem solvers and have strong leadership skills. Above all, there must be complete trust and respect between the business owner and COO. The closer their relationship, the better they will both be able to serve the company’s best interests.