Full Form Of Coo Chief Operating Officer Skills Responsibilities

Full-Form of COO (Chief Operating Officer)

Explanation

This is usually an experienced professional with hands-on experience across different verticals within the business line. It is rightly said that the Chief Operating Officer is the architect responsible for executing the company’s vision, thereby making ideas a reality. It is instrumental in ensuring that the business achieves the strategy the Chief Executive Officer and Board of Directors devised.The 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.

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Types

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. read more (which is more likely in startups 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.read more. They play a specific role in such cases 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 DirectorsBoard Of DirectorsBoard of Directors (BOD) refers to a corporate body comprising a group of elected people who represent the interest of a company’s stockholders. The board forms the top layer of the hierarchy and focuses on ensuring that the company efficiently achieves its goals.
read more 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 developing 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. read more and periodic monitoring to determine the progress and challenges encountered.

Skills and Qualification

Usually, the candidates with the following skills and qualifications are found to be suitable for the role of Chief Operating Officer:

A minimum of ten years of experience in a professional setup with experience in handling operations in a large organization at the leadership level is one of the basic prerequisites. However, the years of experience vary based on the organization and industry.Master’s 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 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 requirements, which may be looked into by different Organizations that are specific to the organization in question and are not generalized.

Salary

Being a top management position, the salary that the role of COO commands 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 country to country. Normally in a developing country like India, 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

Conclusion

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 toward the vision and strategy determined by the CEO and board of directors.Normally, it holds a good number of years of experience in the business line for which they are hired as the role demands hands-on execution skills, people management, and financial budgeting, to name a few. These are influential, proactive, and strong leaders, and their success in their role depends upon the confidence they enjoy in their CEO and Board of directors and the commitment of their team members.The typical Chief Operating Officer reports to the CEO, 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.