Duties Of Chief Operating Officer – The Chief Operating Officer (COO) is a senior executive who oversees the day-to-day management and operational functions of a company. The COO typically reports directly to the Chief Executive Officer (CEO) and is considered second in the chain of command.
Some companies call their COO by other terms, such as “VP of Operations,” “Chief Operating Officer,” or “Director of Operations.”
Duties Of Chief Operating Officer
The COO is primarily focused on executing the company’s business plan according to the established business model, while the CEO is more concerned with long-term goals and the broader business outlook. In other words, the CEO sets the plan and the COO executes it.
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For example, if a company’s market share is declining, the CEO may demand increased quality control to strengthen its reputation with customers. In this case, the COO can carry out the CEO’s duties by instructing the human resources department to hire more quality control personnel. The COO may also initiate the launch of new product lines and may be responsible for production, research and development, and marketing.
Keep in mind that the COO role can vary from company to company depending on each company’s needs.
Depending on the CEO’s preferences, the COO often handles the company’s internal affairs, while the CEO serves as the public face of the company and handles all external communications.
Rather than having just one or two skills, most successful COOs have a versatile talent that allows them to adapt to a variety of tasks and solve a variety of problems.
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In many cases, the COO is chosen specifically to complement the skills of the current CEO. In entrepreneurial situations, the COO often has more hands-on experience than the founding CEO. The founding CEO has come up with a great concept, but lacks the startup knowledge to launch the company and manage the early development stages.
As a result, COOs often design operational strategies, communicate policies to employees, and help human resources (HR) build the core team.
Every company is different and at different stages of growth. A new company will likely have very different needs than a company that has been around for 100 years and has a large market share in the industry. Depending on your business, needs, cycle stage, and unique characteristics of your company, the specific type of COO you need to help your company achieve its goals will vary.
COOs typically have extensive experience in the areas in which a particular company operates. COOs often spend at least 15 years working their way up the ranks at a company. This slow build helps prepare COOs for their roles by allowing them to gain extensive experience with the practices, policies, and procedures of their chosen field.
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COOs are traditionally responsible for managing multiple departments, so they must be resourceful problem solvers and have strong leadership skills. Educationally, COOs typically have at least a bachelor’s degree and often also have a Master of Business Administration (MBA) degree and other certifications.
The road to becoming a COO, like that of any other C-suite executive, can be a long one. It can take years to learn on the job and in school. Others become COO much sooner, for example by joining a startup or starting a company.
If you want to develop your skills with the goal of becoming a Chief Operating Officer (COO), you’ll focus on the following steps:
There are some fundamental similarities between these two roles. Both the CEO and COO are internal directors of the company. Both are tasked with participating in day-to-day management activities to keep the business running smoothly.
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The difference between a COO and a CEO begins with the organizational chart. The CEO is at the top of the chain of command and the COO is second in command and reports to the CEO.
The CEO is typically externally oriented, while the COO is typically inwardly oriented and is responsible for internal activities and communications. While the CEO devises the business strategy, it is the COO who oversees its implementation.
Oracle is a technology company founded in 1977. It sells database software, cloud technology, management systems, and a variety of other products. Although Oracle was performing well as a company, it reached a growth ceiling and was unable to grow annual revenue above $1 billion for some time.
In 1992, Larry Ellison, then CEO and now Chief Technology Officer, brought in Ray Lane to turn the company’s fortunes around. Lane joins Oracle USA as senior vice president and president. In 1996 he became COO.
Coo Job Description
When Lane joined, he integrated packaged software and high-margin professional services. Accordingly, he sold two products in one cycle, increasing profits with one sale. And because the people providing the professional services are experts on the products, the company is able to charge higher prices and, as a result, earn higher margins, he said.
In 1992, Oracle had sales of $1.8 billion and profits of $61.5 million. In 1997, it recorded sales of $5.7 billion and profits of $821.5 million.
In 1999, Lane received a salary of $1 million and a bonus of $2.25 million. He also received $11.25 million in stock options worth between $11.8 million and $30 million.
The history of Dell computers is quite famous. Michael Dell started the company in 1984 in his college dorm. It was the first company to sell personal computers directly to consumers. The company performed well until 1993, when things began to shake up.
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The company’s stock price fell from $49 to $16 and its CFO resigned. The company’s problems were simply due to rapid growth that it could not keep up with. The company planned to launch a laptop, but it was eventually halted due to lack of production plans. At the time, the company did not know which product lines were generating profits and losses. Essentially, the job was a mess.
When the company collapsed, Dell decided to hire people with experience. He chose people who were older than him and who had the administrative qualities to change the situation. The key figure was Mort Topfer. Although he did not have the title of COO (Vice Chairman), he held the position of COO and was Dell’s mentor and right-hand man.
As of 2023, Dell was the third largest computer company in the world with a market share of 16.18%.
When Topfer joined, he implemented a multi-year plan, opening cheaper overseas plants, reorganizing management, and encouraging Dell to focus on strategy while Topfer handled day-to-day operations. The company changed and became a strong company.
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Topfer joined Dell in 1994 and previously led the land mobile products division at Motorola. His salary at Dell in 2000 was $700,000, with a bonus of $1.2 million. He also received 290,910 stock options.
The CEO is the highest-ranking person in the company and is responsible for the long-term health and direction of the company. The COO is the second-highest person in the company and reports to the CEO and is responsible for day-to-day operations. management. -Daily activities of the company.
The COO has extensive work experience and a strong educational background. A strong COO will work in a variety of positions, especially within a specific organization, to understand the different parts of the business and how they work together. This helps you identify specific issues and gaps within your organization. Experience managing people and teams is also essential to becoming a COO. COOs must also have excellent communication skills, be a strong leader, and be a flexible manager.
A COO’s salary will vary greatly depending on a number of factors, including the company he or she works for, experience, and contracts. The average COO salary as of 2023 is $139,156, according to PayScale. Base salary ranges from $69,000 to $249,000. COOs also receive bonuses and profit-sharing plans.
Chief Operating Officer
The COO is the CEO’s right-hand man and the company’s second-highest executive. The COO is responsible for the day-to-day operations of the company and supports the CEO in a variety of tasks. Not every company needs a COO. However, they often benefit from the specific skills a COO brings to the company, such as strong analytical, organizational and communication skills.
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Sample Job Description: Chief Operating Officer (strategy/operations)
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