What is COO and Implementation of Their Role in a Business
The role of company executives is often a position that is not widely recognized by many people, even the company's employees themselves. This may happen on a large scale company that has more than one branch. Usually, the executive ranks referred to as C-level are divided into several strategic positions.
The position of Chief Operating Officer (COO) may not be a role as often recognized in a company as the Chief Executive Officer (CEO). Indeed, not all companies need this position because the COO can be said to be the CEO's right hand. Therefore, the role of the company COO is no less important than the CEO.
What is a COO?
The Chief Operating Officer (COO) is a company executive whose job is to oversee the continuity of the company's operations. COOs are senior executives who are usually found in various business, government, and healthcare industries.
Operationally, the COO will report to the CEO as the "second person" in the company and manage the company's daily activities. The role of COO is appointed to encourage sustainable organizational growth. In some situations, the COO is also known as the operations director or vice president (VP) of operations.
COO's Role Based on Their Responsibilities
Each company has a COO with each different role according to the goals to be achieved. Even though the title is the same, COO has different responsibilities based on industry and involvement, including the following:
1. Executor
A COO who takes an implementing role is responsible for implementing top management strategies. The results provided from this position are also adjusted to a frequency that depends on the needs of the organization. For example, the reporting intensity of a COO can be done every day or simply in the form of quarterly reports for industries that are more predictable.
Roles like this can be found in the operationally focused automotive and aviation industries. You may also find these professionals in highly competitive and ever-evolving markets such as technology. While the acting COO focuses on operational details, the CEO can concentrate more on the company's long-term goals.
2. Agent of Change
As a change agent, the COO has more specific goals than implementing a general strategy. Usually, this role is needed to solve a problem being faced by an organization.
For example, technology companies need to improve poor sales performance through innovative marketing strategies. The COO role can help expand operations. In carrying out his role, the COO must also use creativity and analytical skills to develop appropriate solutions.
3. Mentors
Some companies may have superior professionals, but relatively inexperienced CEOs. The idea behind this approach is to allow one to grow with the company while developing leadership strategies. If the company is experiencing historic growth, the CEO may feel overwhelmed and experience inappropriate organizational adjustments.
Hiring a COO can act as a mentor who can provide guidance so that the CEO can be successful. Typically, the designated COO already has years of executive experience and may even have been CEO. In this situation, the COO acts as an advisor to help the new CEO be successful.
4. Most Valuable Players (MVPs)
While spending several years in an organization, one can become familiar with internal processes and develop specialized skills. This expertise makes them one of the most valuable players (MVP) in the company.
Typically, the MVP role encourages organizations to retain them. One of the most effective retention methods is to provide a COO position. This promotion strategy prevents executives from seeking high-ranking roles in competing organizations. In this way, the company ensures that it remains a leading innovator in its industry.
5. CEO's Partner
In most cases, the COO is second in command and reports to the CEO. This strategy is beneficial for many organizations, some CEOs work more effectively when they have a partner. When serving as a partner, the COO shares many responsibilities with the CEO through a collaborative relationship.
Balanced authority can help them exchange ideas more effectively and drive overall company growth. The CEO and COO partnership is usually metaphorical, but some organizations even provide shared office space to encourage collaboration between these professionals.
6. Upholstery
Typically, CEOs are well-rounded people who have collaboration and communication skills. CEOs have a lot of expertise in their industry, but usually excel in certain areas more than others. A COO can act as a foil with his or her expertise in areas that are not the CEO's expertise.
7. Heirs
When a company wants someone to be its CEO, the company will probably promote him to the COO position first. Things like this can happen to company heirs.
In such situations, the potential heir to the COO position will learn more about the company and get advice from other high-level executives. Once it is assessed that the candidate is suitable, the company can promote him to the position of CEO.
Based on the role, the company can determine the appointment of a COO to achieve certain goals. A COO must also be able to analyze the business environment in order to contribute well to business continuity. This can be supported through the Strategic Business Analysis program so that the COO's role becomes optimal.
