What Is the Meaning Of Chief Operating Officer & Its Importance

What Is the Meaning Of Chief Operating Officer & Its Importance

5-6 minutes

Who is COO?

A Chief Operating Officer of a company is one of its senior executives and second in command to the Chief Executive Officer. The COO can also be described as a CEO''s right-hand man. While the major job of a CEO is long-term vision and mission, a COO deals with daily operations.

The other terms used for referring to a COO are ""Chief Operation Officer"", ""Operations Director"", or ""Executive Vice President of Operations"".

Difference between COO and CEO

COO Qualifications

Education

For becoming eligible for a COO''s position, one must have a bachelor''s degree in business. However, Chief Operating Officers usually have a master''s degree.

Work Experience

Normally, COO candidates have significant work experience to support their application. 10-15 years of experience is recommended for a COO.

Skills

COOs need strong abilities to inspire and lead departments, such as leadership skills, team building skills, and communication. Other qualities that are important include problem-solving and critical thinking.

Roles and Responsibilities of a COO

According to McKinsey, ""The COO job description has never been a fixed one: it varies by industry, organization, and need. Some COOs may see their role as that of a mentor, whereas others may be partners or heirs apparent to the chief executive.""

The Chief Operating Officer plays a very significant role in the smooth running of the company.

Basic Role of a COO:

• Oversee the activities in the day-to-day organization
• Hire and recruit
• Implement the plans and strategies developed by the CEO
• Ensuring policy implementation
• Offer support and assist the CEO
• Mentor employees to work to their full potential
• Maintain partners and client relationships

Types of COO

The COO is defined in 7 different types by the Harvard Business Review:

• The Executor: Responsible for implementing the policies developed by the CEO or the management team(s).
• The Change Agent: Appointed to restructure or turnaround the company''s situation.
• The Mentor: Brought in to groom an inexperienced CEO, often the founder themselves.
• The Other Half: Possesses skills that complement or fill the gaps of the CEO.
• The Partner: Partners with the CEO to increase their effectiveness.
• The Heir Apparent: Prepares for or tests the expected future CEO.
• The MVP: Promoted from within due to being too valuable to lose.

3 Famous COOs You Should Know

Ray Lane of Oracle

Larry Ellison hired Ray Lane in 1992. Ray joined Oracle as the president and COO in 1996. Ray helped to turn around the profit margins of the company. Ray Lane resigned from Oracle in 2000.

Mort Topfer of Dell

Dell was started in the year 1984 by Michael Dell, and it was for the first time ever that computers were directly sold to consumers by any company. After 1993, the company started falling apart, and it was at that time when Michael thought of hiring experienced people, including Mort Topfer. Though not officially the COO, his work profile was that of a COO, and his strategies helped revitalize Dell.

Sheryl Sandberg (Facebook)

Sheryl Sandberg has been COO at Facebook since 2008. She has been a key determining success factor for Facebook, increasing its user base and handling daily operations.

FAQ

• Q1. What is the role of a COO? A Chief Operating Officer is a senior executive who reports directly to the CEO and manages day-to-day operations. The COO can also be referred to as the CEO''s right-hand man.
• Q2. What are the qualifications and skills of a COO? A COO should have at least 10-15 years of work experience in related fields and be well-versed with the work profile of every department. Essential skills include leadership, team building, communication, problem-solving, and critical thinking.
• Q3. What is the work that a COO has to be accountable for in a firm? The COO oversees day-to-day operations, implements strategies developed by the CEO, assists the CEO, and maintains client relationships.

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