What Does a COO Do? 10 Common Responsibilities
If you ever heard of the term chief operations officer, you may have wondered, exactly what are the responsibilities of a COO? This executive is often an unsung hero, doing a number of valuable, behind-the-scenes tasks that keep a large company running smoothly.
What Is a COO and What Does a COO Do?
The COO is sometimes called the vice president and may be in training to become the next CEO of the company. In other cases the COO may be there on a temporary basis in an advisory capacity. People often ask, “What does a COO do?” There is no one solid answer. Their tasks depend on the company’s needs, and a person who excels at being the COO at one company might not succeed in the position in another.
Often the COO works behind the scenes, but sometimes this officer is brought to the forefront. It all depends on what the CEO and other company executives deem necessary. Here are 10 of the tasks a COO might do.
1. Run Daily Activities
The COO generally makes sure the company runs smoothly. If a business is operationally intensive, having a COO is a must. When the COO focuses on company operations, the CEO can concentrate on longer-term challenges the company may face down the road.
A COO may also coordinate with different departments, including IT and business development along with human resources and marketing, to make sure everyone is on the same page and achieving the stated goals.
2. Make Crucial Decisions
The COO works with other managers to study the company’s performance and make strategies to improve operations in the future. Together the management team looks at how each department did. What did that department do that was great? How can the department be improved?
The COO is usually the one who determines the recruiting standards and reviews marketing campaigns to make sure they’re effective. The COO also communicates with crucial stakeholders and investors along with clients and partners about company performance. The COO will listen to these key people and analyze their feedback.
3. Keep the Company on Budget
If a company doesn’t have a chief financial officer, the COO often steps into the role, reviewing revenues from previous terms and making sure sales meet company goals. A COO may also be in charge of buying and selling assets and making investments. What does a COO do in regard to company finances? The answer is, whatever is needed.
4. Plan Business Trips
The COO often has to attend both investor and executive meetings. This officer also has to be at all corporate sales meetings and participate in acquisition planning. All of that may require travel. The COO may also decide the travel budgets of other key employees in the company.
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5. Leading a Structural Change
If a company needs to make a turnaround, a COO with special skills may be brought in to handle it. The same goes if a company is making a structural change or planning a huge expansion. What does a COO do about these things? This officer will be given the needed authority to do whatever it takes to get the job done.
6. Mentor a CEO
A founder can start a company based on an amazing concept but may lack the skills to run that company successfully. The same is true of someone inexperienced stepping into a CEO position. Both need a mentor to help them successfully manage the operations of a corporation. The right COO can ably fill that role.
7. Complete the CEO
A company may also hire a COO to help make the CEO complete. The COO can bring in new ideas or different opinions that enable a CEO to see different aspects of a problem and have a more balanced perspective. A company may also hire a COO because of experience that the CEO might not have. For example, a CEO for a fashion brand who previously worked for a medical company might hire a COO with more relevant insider knowledge.
8. Prepare To Replace the CEO
If a CEO is planning on retiring down the road, a COO may be brought in as an heir apparent. That way, this officer can learn the operating procedures of every department in the company as well as get to know the people and the business environment. As the COO continues in the position, the company will gradually expose the COO more while the current CEO steps away from the limelight. That way, shareholders and others within the company are comfortable with the transition when it takes place.
9. Be Too Valuable To Lose
A company may promote a strong employee to COO to keep from losing such a valuable person to competitors. In that case, a company may have more than one COO on staff.
10. Act as Partner to the CEO
Some CEOs prefer working with a partner. CEOs who want a co-leader can hire a COO to fulfill this position. They lead the business together and share business decisions.
What does a COO do in this capacity? Anything and everything to ensure the company runs successfully. If the CEO is the brains of the operation, the COO is its heart and the glue that keeps everything together. The CEO may be a rockstar, but the COO is the real hero.
What Does a COO Do To Qualify?
If a COO makes too many wrong decisions, it will not only affect their future with the company, but the wellbeing of the business itself. Any person aspiring to become a COO must have a unique set of skills and training.
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