The COO is responsible for day-to-day operations and is the second most senior person in the executive structure, reporting to the CEO. COO positions vary by industry and company, and some delegate responsibilities to lower-level executives. COOs may have dual roles and deep understanding of their industry. They may be brought in to solve problems and can rise through the ranks to become a natural successor to the CEO.
Chief operating officer positions can vary greatly from company to company, as well as between different industries. Generally, when a COO (Chief Operating Officer) is present in the corporate structure, it is their job to handle the day-to-day operations of the company. The COO will generally be the second most senior person in the executive structure, reporting directly to the CEO and working within guidelines established by the CEO. Any company organized as a corporation can have a COO, although some delegate typical COO responsibilities to lower-level executives. In cases like these, director of operations positions may be performed by a vice president or director of operations.
In a typical corporate structure, top executives comprise what might be known as a “C-suite”. This could include the chief executive officer, chief operating officer, chief financial officer (CFO) and others, depending on the industry and the particular company. If the CEO is also the chairman of the board of directors, the COO may also have the role and responsibilities of chairman. It is also possible for a COO to have a dual role and for director of operations roles to include the responsibilities of a CFO, chief technology officer (CTO) or others. Large companies may even have more than one COO, each overseeing a different section or division of the business.
The responsibilities of any particular COO are largely dictated by the industry in which he works. COO positions in sectors such as the manufacturing industry may focus on developing or improving all aspects of the systems involved in producing and delivering the products the company manufactures. In another industry, such as information technology, COO jobs may be more tailored to focus the company’s limited resources on achieving the goals set by the CEO.
It is typical for a COO to have a deep understanding of the industry they work in, and sometimes COOs are brought in from a different company in the same industry to solve a problem a company is having. These COOs may be known as “fixers” because their job is to review the company’s operations and fix a problem. It is also typical for a COO to rise through the ranks of a company and then hold the COO position until the CEO is ready to retire. This can allow a corporation to have a natural successor to the CEO and some continuity in management.
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