Full-Form of COO (Chief Operating Officer)
Full-Form of COO stands for the Chief Operating Officer. It is one of the most important key managerial positions in an organization. It is one among the top roles popularly known as C-suite-CEO (Chief Executive Officer), CFO (Chief Financial Officer), CRO (Chief Risk Officer), CIO (Chief Information Officer). It is a Top Management grade position and it usually reports to the Chief Operating Officer (CEO) and is responsible for handling the day to day operation and execution of business strategy.
- This is usually an experienced professional with hands-on experience across different verticals within the business line. It is instrumental in ensuring that the business achieves the strategy as devised by the Chief Executive Officer and Board of Directors. It is rightly said that Chief Operating Officer is the architect responsible for executing the company’s vision, thereby making ideas a reality.
- Chief Operating Officer’s purpose lies in improving the business operational performance, enhancing customer satisfaction, and taking the whole business unit as a cohesive force towards attaining business goals and objectives.
There are no types of COO, but only the different roles that this position has to take care of, which led to the categorization of types of Chief Operating Officer, namely:
- In some instances, this acts as the executioner for the broader plans of the organization. In other cases, the role is to groom the CEOCEOChief Executive Officer is the full form of CEO. He is the most senior member of a corporate organization, an executive who oversees the whole administration and operations of the company and reports directly to the board of directors and chairman, with the sole purpose of generating wealth for the company's stakeholders and shareholders. ( this is more likely in startups, which are run by young CEOs) and mentor them.
- These are also given the role of changing the business structureBusiness StructureBusiness structure is the legal framework adopted by a company to execute business activities in compliance with the corporate rules and regulations. An organization can be a sole proprietorship, partnership, limited liability company or corporation.. In such cases, they play a specific role by ensuring the business is revamped and reorganized to attain the stated objective.
Responsibilities and Functions
A few of the noteworthy responsibilities are as follows:
- Execution of Strategies devised by the CEO and Board of Directors through involvement and spearheading with the team.
- Overseeing the preparation of Budgets for the business and evaluation of daily performance metrics of the business.
- Provide efficient and encouraging leadership and stewardship by actively participating in all business decisions.
- Involvement in the development of annual budgeting exercise through active support of Chief Executive Officer and Chief Financial OfficerChief Financial OfficerThe full form of CFO is Chief Financial Executive, and he or she is a top level executive of the firm who is responsible for the firm's overall finance functions and has the authority to make financial decisions for the organization. and periodic monitoring to determine the progress and challenges encountered in the same.
Skills and Qualification
Usually, the candidates with the following skills and qualifications are found to be suitable for the role of Chief Operating Officer:
- Minimum ten years of experience in a professional set up with experience in handling operations in a large organization at the leadership level is one of the basic prerequisites. However, the number of years’ experience varies based on the organization and industry.
- Masters degree in business administration along with certifications in operations management from a reputed institute
- Strong communication skills and a clear understanding of the business. Background in a related line of business is a big advantage and makes the candidate an ideal fit.
These are some of the skills and traits that organizations usually look for when choosing somebody for the Chief Operating Officer’s role. There may be numerous other skills and requirements depending upon the organization as well as role requirement which maybe look into by different Organizations that are specific to the organization in question and is not generalized in nature.
- Being a top management position, the salary that the role COO command is very high irrespective of the Industry to which it belongs. However, the pay scale varies within Industries with some Industries paying less and some Industries with the scarcity of professionals with the requisite skills to handle this role paying more than others.
- The salary of the Chief Operating Officer is also affected by the number of years of experience and also country to country. Normally in a developing country like India usually salary ranges from $40000-$200000 per annum. The amount may be less also for small Organizations and more for large MNCs with setups in India.
Differences Between COO and CEO
|Basis for Comparison||COO||CEO|
|Full-Form||COO stands for Chief Operating Officer.||CEO stands for Chief Executive Officer.|
|Reporting||This is the second command and reports to Chief Executive Officer.||This oversees the Chief Operating Officer and reports to the Board of Directors.|
|External and Internal Interface||It focuses on the internal aspects of the company and is instrumental in executing the vision and strategy.||It focuses on the external aspects of the company and is instrumental in determining the vision and strategy.|
- This is an important role in any organization; however, it is found more in a large organization. The role complements the Chief Executive Officer in navigating the Organization towards the vision and strategy determined by the CEO and board of directors.
- Normally, it holds a good number of years experience in the business line for which he/she is hired as the role demands hands-on execution skills, people management, financial budgeting, to name a few. These are influential, proactive, and strong leaders, and their success in their role depends upon the confidence that they enjoy of their CEO and Board of directors and the commitment of their team members.
- The typical Chief Operating Officer reports to the CEO and takes care of the business’s internal functioning and has a flair for number crunching, solving complex business problems, and overseeing the administrative and operational aspects of the business.
This has been a guide to the Full Form of COO, i.e. (Chief Operating Officer) and its definition. Here we discuss the types of COO, responsibilities and skills & qualification, salary, and differences between COO and CEO. You may refer to the following articles to learn more about finance –