What is the role of the Chief Operating Officer?

The Chief Operating Officer (COO) is a member of the executive management team of the organization. They are responsible for the daily management and operation of the business. Typically, the COO has overall supervisory responsibility for all operations of the entity.

How does the Chief Operating Officer work?

The Chief Operating Officer can also be referred to as the Vice President of Operations. As the second in command after the Chief Executive Officer (CEO), the COO’s role is to provide leadership, management, and vision to ensure that qualified personnel and operational controls, administrative procedures, and effective reporting are in place within the company. The COO must help the company grow effectively while ensuring its financial strength and operational efficiency.

With the right training, experience, and skills, an individual can occupy this role in a variety of organizations, such as for-profit companies, nonprofit organizations, government entities, and schools.

Example of a Chief Operating Officer

Some notable COOs include Tim Cook, who served as Apple’s Chief Operating Officer before becoming CEO in 2011, and Sheryl Sandberg, COO of Meta.

Responsibilities and Duties of the Chief Operating Officer

The roles and responsibilities of the COO vary, not only based on the organization they work for but also on how that company defines the position. There is no agreed-upon list of what the job entails, and the role may have different titles depending on the organization.

The COO may be appointed to achieve some or all of the following tasks or objectives:

Implement strategies developed by the senior management team
Lead a specific strategic initiative
Guide the new CEO
Complement the CEO’s expertise or management style
Provide a partner for the CEO who does not work well alone
Prepare the next CEO of the organization or test the individual to ensure suitability for the position
Promote someone they do not want to lose

Companies often transfer the responsibility of all areas of the business operations to the COO, which typically includes production, marketing, sales, and research and development. In some companies, the COO’s work is internally focused, while the CEO is externally focused. In other companies, the COO’s task may be centered around a specific business need.

Chief Operating Officer Salary

The salary of a COO varies based on the area of expertise, level of experience, education, certifications, and other factors. They typically earn compensation that is not tracked by annual wage data, including stock options and access to company perks. The Bureau of Labor Statistics (BLS) tracks COO data as part of the “Top Executives” category:

Median annual wage: $179,520
Top 10% of annual wage: More than $208,000
Bottom 10% of annual wage: Less than $43,260

Note: There were approximately 292,500 executives (including CEOs, COOs, and CFOs) working in the United States in 2020.

Comparison to Similar Jobs

Individuals interested in the COO position also consider the following career paths, along with their median annual salaries:

Financial Managers: $131,710
Sales Managers: $127,490
Administrative Services Managers: $113,030

Education, Training, and Certification

To be considered for the COO position, an individual needs a combination of education and extensive experience.

Education: The minimum educational requirement is a bachelor’s degree in business administration or a related field, but many organizations prefer to hire someone with a master’s degree in business administration.

Experience: A COO usually needs to have extensive experience in the industry or field in which the company operates.

Note: COOs often work their way up through the company for no less than 15 years, spending at least five years in a senior management position.

Skills and Competencies of the Chief Operating Officer

In addition to educational and experience requirements, organizations seek COO candidates who also possess soft skills such as leadership, decision-making, and communication. Here are some of the most important qualities:

Leadership:
The Chief Operating Officer should have excellent leadership skills, a good practical understanding, and the ability to effectively manage and lead a multidisciplinary team.
Strategy: They should excel in strategic thinking and be open to new perspectives and better ways to conduct business, be creative visionaries, and manage innovation well.
Achievement: The Chief Operating Officer should be passionate about achieving results.
Financial Understanding: The Chief Operating Officer should have a proven track record in successfully managing financial matters.
Decision-Making Skills: A successful Chief Operating Officer should have superior decision-making skills.
Delegation: They should have the ability to delegate effectively.
Communication: The Chief Operating Officer should possess executive communication skills and influencing skills, with the ability to solve problems and build consensus among diverse internal and external stakeholders and have a proven skill in negotiating and mediating in conflict situations.

Job Outlook

The Bureau of Labor Statistics projects a 6% decline in executive positions from 2020 to 2030. This includes positions such as Chief Operating Officer, Chief Financial Officer, and Chief Executive Officer. This does not reflect a negative outlook for the executive job market overall. Top executive jobs are expected to grow by about 8% during the same time, placing this job category on par with the general job market.

Work Environment

Chief Operating Officers and other executives work in all types of businesses, from small to large companies, whether they have a few employees or thousands. Their work often involves a high degree of pressure due to the responsibility of making the business successful.

They face the risk of losing their jobs in a poorly performing organization. Executives often travel to conferences, meetings, and different business units within their company. They also frequently interact with many other executives at a high level.

Work Schedule

Executives often work more than 40 hours per week, including weekends and evenings. As with other job details, this period will vary depending on the needs of the company.

How to Become a Chief Operating Officer?

Here are some steps you may consider if you want to become a Chief Operating Officer:

Gain Experience: The Chief Operating Officer role requires many years of experience in various aspects of the company’s business. Look for jobs in companies that allow you to move around and gain experience in different departments or companies that have a management training program that helps you gain more exposure to all the company’s different operations.
Focus Your Resume: If you believe you have the right work experience and educational background for the position, read the Chief Operating Officer job description and highlight the relevant work experiences that qualify you. Tailoring your resume this way may also reveal other areas where you may need to expand your expertise before applying for Chief Operating Officer positions.
Apply: Look at job search resources like Indeed, Monster, and Glassdoor for available positions. You may have better opportunities by gaining Chief Operating Officer experience in smaller companies before applying to larger and more established firms.

Frequently Asked Questions (FAQs)

What does COO mean?

“COO” stands for “Chief Operating Officer,” the person who holds the highest executive responsibility for the daily operations of the company.

Who reports to the Chief Operating Officer?

Almost everyone within the organization reports to the Chief Operating Officer, although they may not do so directly. The COO has broad responsibilities and oversees all aspects of the company aside from the other executives, the board of directors, and the owners.

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Sources:

The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts in our articles. Read our editorial process to learn more about how we verify facts and maintain the accuracy, reliability, and quality of our content.

University of Maryland. “The Role and Responsibilities of the Chief Operating Officer.”

Apple. “Tim Cook: Chief Executive Officer.”

Facebook. “Sheryl Sandberg.”

Bureau of Labor Statistics. “Top Executives: What Do Top Executives Do?”

Bureau of Labor Statistics. “Top Executives: Earnings.”

Bureau of Labor Statistics. “Top Executives: Job Outlook.”

Bureau of Labor Statistics. “Financial Managers.”

Bureau of Labor Statistics. “Sales Managers.”

Bureau of Labor Statistics. “11-3012 Administrative Services Managers.”