A chief operating officer (COO) is a senior executive who leads an organization’s operations and helps turn its strategy into day-to-day execution. The COO commonly reports to the chief executive officer (CEO), but the title does not define a fixed portfolio: responsibilities depend on the organization, industry and CEO’s needs.
What does a COO do?
A COO directs the people, processes and resources that keep an organization operating. The Institute of Directors describes the role as directing and controlling operations in line with the strategy and business plans agreed by the CEO and board, so the organization can meet its goals. Its accountabilities include operational staff, corporate-strategy contributions, policies and procedures, and operating budgets (Institute of Directors, factsheet updated 2 September 2019).
In practice, the COO may oversee day-to-day delivery, coordinate departments, monitor performance and lead implementation of company plans. The exact balance can differ: one COO may concentrate on core operations, while another may have a wider remit involving transformation, technology-enabled growth, resilience, value creation or employee empowerment (McKinsey & Company, 6 December 2023).
How does a COO work with the CEO?
The COO commonly reports to the CEO and translates organizational priorities into operational action. In some companies, the CEO focuses more on external stakeholders while the COO provides internal leadership and direction. That is a common arrangement, not a universal division of labor; the CEO and COO may share or divide responsibilities differently depending on the organization (McKinsey & Company, 6 December 2023).
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What responsibilities might fall under the COO?
A COO’s portfolio can include several of these areas, but not every COO owns all of them:
- Operations and delivery: overseeing how products or services are produced and delivered.
- People and departments: leading operational staff and coordinating the functions within the COO’s remit.
- Planning and execution: turning business plans into work priorities, processes and operating practices.
- Policies and procedures: establishing or overseeing operational rules and standards.
- Budgets and performance: managing operational budgets and monitoring whether operations meet organizational goals.
- Broader organizational change: where assigned, leading transformation, resilience or technology-enabled growth.
Operational delivery and risk management can also be part of the role; the details depend on the organization and its needs (ACCA, career profile).
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Why does the COO role vary so much?
COO is a senior title, not a standardized job description. Companies appoint COOs to address different needs, and the responsibilities assigned to the role can shift as the business changes. McKinsey’s 2023 overview describes a range of COO agendas, from core operations to broader work in transformation, technology-enabled growth, resilience, value creation and employee empowerment (McKinsey & Company, 6 December 2023).
Historical figures illustrate that the title is not present in every large company. McKinsey reported that 48% of Fortune 500 and S&P 500 companies had a COO in 2000, compared with 32% in 2018. Its analysis also reported that 40% of leading companies had a COO in 2022, rising to 48% in the financial and energy sectors. These figures describe the populations and years McKinsey reported; they are not current rates for all businesses (McKinsey & Company, 2023).
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How can you compare two COO roles?
When evaluating a COO job description—or trying to understand a company’s leadership structure—look beyond the title. Compare the role on these points:
- Reporting line: Does the COO report to the CEO, and are any other reporting relationships specified?
- Functions and processes: Which departments, operations or stages of delivery are explicitly in scope?
- Decision authority: What decisions can the COO make, and which require CEO or board approval?
- Budget ownership: Which operating budgets does the role control or influence?
- Strategic remit: Is the COO primarily responsible for reliable day-to-day operations, or also for transformation and longer-term change?
- Expected outcomes: What goals or measures define success in the role?
These details reveal more about a particular COO’s authority than the title alone. General descriptions of the role cannot establish the duties or decision rights in an individual company’s current job specification.
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Can a COO become a CEO?
COO experience can be a path to the CEO role, though it is not a guarantee or a required step. McKinsey reported that nearly 27% of CEOs at Fortune 500 and S&P 500 companies in 2021 had been promoted from COO positions (McKinsey & Company, 2023). The figure applies to that company population and year, not to all CEOs or to current appointments.
The job can also be demanding: in interviews with current and former COOs conducted in 2022, McKinsey reported that only about a third of their time went to long-term strategic planning. The remainder was split between people oversight and current operational priorities (McKinsey & Company, 2023).
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