The role of the Chief Operating Officer (COO) is one of the most critical positions in any organization. It’s not just a fancy title—it’s typically the second-in-command after the CEO. And trust me, this isn’t a role where you just sit in meetings all day and nod. A COO can truly shape how a company runs, grows, and evolves.
What Does a Chief Operating Officer Actually Do?
In plain terms, the COO is in charge of making sure the company runs smoothly on a day-to-day basis. This includes overseeing key departments like operations, HR, marketing, finance, and sometimes even customer service or IT. They’re the ones ensuring the trains run on time while the CEO is out there talking to investors, attending industry events, or making big-picture decisions.
But here’s where it gets tricky—the job of a COO can look wildly different depending on the company. In some businesses, the COO oversees everything internally, handling every department’s daily grind. In others, they’re focused just on the core operations—manufacturing, logistics, product development, etc.—while the support functions like HR or finance report directly to the CEO.
So, if you’re thinking “wait, isn’t this a bit vague?”—yeah, it is. And that’s kind of the point. The COO role is incredibly dynamic.
COO vs. CEO: Who Does What?
To put it simply: the COO handles the internal engine of the company, while the CEO is more outward-facing.
The CEO is the public face, managing external stakeholders like board members, investors, and strategic partners. They focus on vision and long-term direction. The COO, on the other hand, is making sure that what the CEO envisions actually gets done.
You could think of the CEO as the architect, and the COO as the builder.
The Core Responsibilities of a COO
Let’s get into the meat of it. These are some of the typical responsibilities a COO might handle. Again, this varies by company, but generally speaking:
- Turn strategy into execution – The COO takes the strategic vision and works with department heads to bring it to life.
- Drive performance and productivity – They set goals, track progress, and hold leaders accountable.
- Ensure cross-department alignment – Whether it’s HR, IT, marketing, or finance, the COO makes sure all departments are rowing in the same direction.
- Build a high-performing culture – That means hiring well, keeping talent engaged, and building leadership pipelines.
- Oversee operational planning – Budgeting, forecasting, setting targets… all of that lands in the COO’s lap.
- Regulatory compliance and audits – They ensure policies are followed and that the company stays in line with the law.
- Optimize processes and efficiency – COOs are constantly looking at where the business can run leaner and smarter.
- Capital investment management – Think of this as making sure the money being spent actually moves the needle.
- Support digital transformation – A modern COO has to champion tech improvements, system upgrades, and data-driven decision-making.
- Engage stakeholders – From board meetings to client dinners, COOs need strong communication chops.
- Maintain profitability – Above all else, the COO is making sure the company is running in a financially sustainable way.
Basically, the COO is the glue holding the moving parts together.
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Education and Training: What’s Expected?
Most companies hiring a COO won’t even look at a candidate unless they have a bachelor’s degree. In many cases, an MBA or similar master’s-level business degree is also expected.
That said, it’s not just about having degrees. For specific industries—like mining, pharma, or aerospace—companies often want someone with deep technical knowledge in that field plus business chops. It’s about understanding how the business works on the ground and in the boardroom.
Standard Requirements:
A first degree in a relevant field (usually business, finance, engineering, or a related area).
A master’s degree, often an MBA, is pretty much a must these days.
Bonus if the candidate has technical expertise in the company’s core industry.
What Kind of Experience Do You Need?
This role isn’t for someone who just got promoted to manager last year. Most companies want someone who’s been in the executive trenches.
Typical experience requirements include:
- At least 5 years in a senior executive role.
- 5+ years directly in a COO or equivalent operational leadership position.
- Experience leading cross-functional teams—not just in one department.
- Experience managing executives who may have very different skill sets and backgrounds.
- A track record of engaging directly with Boards.
- Familiarity with support functions like HR, IT, finance, and compliance.
In short, they want a seasoned leader who’s been around the block—and then some.
Soft Skills and Characteristics That Really Matter
Degrees and titles aside, a successful COO also needs to bring a lot of soft skills to the table:
- Business savvy – They need to understand how money flows through the business and how to grow it.
- Strategic thinking – Not just running today’s operations, but thinking about how to do things better tomorrow.
- Problem-solving – Stuff breaks. Markets change. COOs need to be calm under pressure and decisive.
- Communication – This role interacts with everyone from frontline employees to board members. Being clear, persuasive, and diplomatic is crucial.
- Ethical leadership – Integrity matters. A lot.
- Team-building – A great COO creates an environment where people want to bring their A-game.
- Governance knowledge – Especially when it comes to risk, compliance, and policies.
- Digital fluency – They don’t need to code, but they should understand how technology drives operations.
A Few Thoughts on the COO Role’s Place in Companies
Now, let’s talk about the elephant in the room: not every company has a COO. And some people even argue the role is becoming less common.
According to a Princeton study of large U.S. firms, zero companies had a COO in 1964. But by 1994, over two-thirds did. The number has fluctuated since then, and in some sectors, the COO role is slowly being phased out.
Why? Well, there’s a bit of a power dynamic issue. Some organizations create the COO role to groom someone for CEO succession. Others do it to keep a potential rival close. And sometimes, let’s be honest, it’s just corporate politics.
That said, many private companies still swear by the role. In those environments, the COO is often the one keeping everything on track while the CEO does the outward-facing work.
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Conflicting Opinions on the Role
Some research suggests companies with both a CEO and COO don’t perform as well financially as those without a COO. Why? The argument is that strategy and execution get disconnected—CEO thinks big, COO executes, and sometimes the right hand doesn’t know what the left is doing.
Others, like management thinker Ram Charan, believe the COO role is essential, acting as a bridge between the CEO and the internal team. It can also serve as a check-and-balance on the CEO’s power.
My take? It depends entirely on the company, the CEO’s strengths, and the complexity of the business. In large, matrixed organizations with many moving parts, a strong COO can be a game-changer.
Final Thoughts: Is the COO Role Still Relevant?
Absolutely—when done right. It’s not a filler position or a “shadow CEO” role. The COO is the operational backbone of the company. They turn vision into action and ideas into results.
But it’s not a one-size-fits-all job. Some companies need a COO deeply involved in everything. Others need someone laser-focused on logistics or scaling operations. What’s clear is that any COO worth their salt needs to know the business inside and out, understand how to lead people, and have the strategic thinking to keep the company growing. They don’t just run operations—they steer the ship from behind the scenes.