As companies grow, the need for a C-Suite executive who handles the operations has also increased. The complexity of operations in technology companies requires someone dexterous, smart, and skilled to handle. This is where the COO or the chief operating officer comes in. The COO is second in command to the CEO and manages the processes, people, and products of the company.
Though the role is not a new one like the Chief Customer Officer, there have been massive changes and extensive transformation over the years. The immense competition has led to the requirements and responsibilities changing rapidly. The COO has evolved with time to be a highly skilled worker with a direct impact on performance and growth. The quintessential problem-solver role of a COO has been revamped to one that requires a specific skill set, innovation, ability to thrive, and agility.
Who is the Chief Operating Officer?
The COO is a senior C-Suite executive responsible for the operational, functional, and administrative aspects of the company. In some companies, the COO may be titled the VP of Operations.
The Role of the Modern COO
The modern COO needs to translate business objectives into solutions via strategies. The modern COO’s role can be looked at through three primary dimensions-
Leading Digital Transformation
The COO needs to initiate and drive customer success by enhancing the value. The COO is responsible for spearheading innovation in the company. The COO needs to be focused on technology and drive the way the business operates. This can mean revamping how a specific team uses technology to grow in business planning and investments. With the world going digital due to COVID-19, it is important to shift the narrative to digital space and enhance performance. The COO needs to be resilient and enhance the company’s vehicle.
Building Operational Strategy
The COO needs to coordinate all departments like sales, legal, marketing, IT, human resources, and business development. The C-Suite executive is responsible for some team heads as well, such as CMO, CFO, HR, and customer success if there is no CCO. The COO needs to optimize business workflows to meet established standards and outputs. The COO also needs to perform KPI management and review the efforts of other teams. This requires building an operational strategy keeping individual team performance in mind.
Accountability and Reporting
The COO needs to manage reporting and accountability in the right manner. The reporting structures, processes, deadlines, timelines, frameworks, etc., need to be set by the COO. The COO needs to harness the power of technology to reach business goals. The CEO is the person the COO reports to. Keeping critical KPIs in mind, the COO must prepare diligent reports on the state of affairs in the company. A chart featuring various heads of departments with their activities can be created to ensure a streamlined performance. The COO binds teams together and creates a cohesive bond in the company.
Responsibilities of the Chief Operating Officer or COO
The COO chalks the strategic vision and leadership board of the organization. The COO includes the managerial, operational, and administrative processes in the company. It is important to communicate with other teams and ensure cross-collaboration to improve efficiency.
- Be the leader in the organization who creates plans that align with the company goals
- Build and create top-class teams in the company
- Align the company’s financial and operative angles with other key members
- Set the goals for individual and team growth in the organization
- Drive the plan to reach favorable results in financial terms
- Create communication processes and implement growth strategies that work
- Work with senior teams to process internal ideas, infrastructure, and programs
- Offer timely and accurate reports about proceedings in the company
- Motivate and encourage the implementation, resource allocation, and processes in the company
- Encourage and forge partnerships with investors, vendors, banks, clients, or other professionals
- Travel and represent the company at various forums, events, meetings, and trips
- Engage in financial review and planning to meet company benchmarks
- Analyze and monitor which departments can be improved and enhanced for impact
- Participate in keeping employees engaged and invested in the company process and policies
The COO Job Description
While charting the job description, it is necessary to keep the responsibilities and roles in mind. Since the COO is a C-suite executive, some specific skills are required. Here is one COO job description.
Chief Operating Officer- Job Description
We are looking for a COO who will offer valuable input to the organization and drive success with their leadership and vision. The COO needs to involve administrative and managerial procedures to conform to the company’s goals. The COO must be a good communicator who drives the company processes. The COO is responsible for the growth and overall efficiency of the company.
The distinct roles you will be expected to fulfill-
- The executor who works on supervising all departments and creating value for enterprises.
- Being a mentor to the team and helping them manage effectively
- Guiding staff and employees to perform better in every segment
- The position of being a change agent to implement a certain activity
- Strategic vision
- Technical skills
- Bachelor’s degree in commerce, business, or related
- Master’s in business from top B-schools
- 10+ years experience in customer success or people management
- Business acumen, executive handling skills, presentation skills
- Financial budgeting, financial literacy, and people understanding skills
Salary of a COO
With the diverse roles and responsibilities of a COO, it is hard to come to an average salary. Moreover, there are different rates for different industries.
As per salary.com, a COO in the USA can make an annual average salary of $458,921. In Australia, a COO makes A$624,318 on a median range. The Chief Operating officer in the United Kingdom earns around £212,148 per year. These are median and average salaries for the role across regions.13
The narrative of business has moved to the digital space. A COO needs to weave the company policies as per the goals. The top executive needs to add their vision and experience to set processes and policies for the company. A COO is responsible for driving business decisions and managing the company regarding its operations. The roles and responsibilities of a COO are challenging but crucial to the company’s success.
Shivani is a talented CS manager with the skillsets to elicit, scope and manage end-to-end B2B SaaS project delivery. She has a keen interest in depicting her learnings in customer success by writing resourceful blogs and articles.
Published April 08, 2022, Updated March 02, 2023