In the world of work or business, of course you will often hear what is called C-Level. C-Level is known as a term for the highest leaders in the corporate world. One of the most well-known positions in the C-Level category is Chief Executive Officer (CEO) as a position that has responsibility or power regarding the highest decisions.
However, it turns out that not only CEOs are included in the C-Level ranks . There are several other positions, such as Chief Financial Officer (CFO), Chief Marketing Officer (CMO), and of course Chief Operating Officer (COO).
In this article, we will review what a Chief Operating Officer is or what many people know by the abbreviation COO. Let’s look at a complete review of the discussion about COO, starting from what and how the COO’s role is in a company.
Definition of COO
In his short note about business leaders , Andrew Blumenthal said that the Chief Operating Officer is a senior executive who has the task of supervising the daily administrative and operational functions of a company’s business. Furthermore, the COO’s duties will be reported directly to the CEO as the highest position holder in the company’s business.
Therefore, the COO position is often referred to as the second highest position in a company, after the CEO. For some companies, the COO is also known as the executive vice president for operational affairs. More simply, the COO is the operational director of the company.
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COO Duties and Responsibilities
In accordance with what has been explained previously, a person who holds the position of COO is responsible for the company’s administrative and operational functions. In general, some of the COO’s duties are to focus on implementing the company’s business plan according to the established business model. Of course, this task is very different from the CEO’s duties, which focus more on long-term goals and the overall view of the company.
In short, the COO has the task of implementing various business plans that have been prepared by the CEO. For example, when a company experiences a decline in sales, the CEO will most likely ask for increased production quality control and so on. Of course, this order must be immediately carried out by the COO who will convey a chain of instructions to the human resources department, one of which is managing personnel in the quality control division.
The COO position itself is very suitable for those of you who have quality and extensive work experience and have previously served in a C-Level position . Many companies really need someone experienced for this executive leadership position. Therefore, many vacancies are open for operational directors in this company.
Apart from that, another example of the COO’s duties can be seen when the business product on the market has been widely imitated or many competing products are almost the same. The CEO as the highest office holder will likely ask for a certain strategy. This strategy will then be conveyed to the COO so that it can be implemented by strengthening the research and development division, thereby producing new product variants.
In a company, the COO is usually responsible for various things within the company’s operational realm. A person who holds the COO position will monitor how strategy comes from the CEO as well as oversee the implementation of strategy or the company’s operational developments, starting from the development, production, to pre-marketing stages.
Difference between COO and CEO, CFO, and CMO
Even though they look equal, each position or position held by these C-Levels has its own level or level. These levels are of course adjusted to the responsibilities and roles in a company.
This can be seen from the existence of instructions or assignment strata for each position from CEO to CMO. However, in general the CEO is the highest leader in the company, while the COO, CFO and CMO are under his responsibility.
COO
- Serves as head of company operations.
- Tasked with supervising and making decisions regarding company operations.
- Has responsibility for solving company problems through the operational domain (communication, collaboration, improvisation, recruitment, operational analysis, and strategy implementation).
- Occupied the number two position as the main senior vice president in the company.
CEO
- Serves as the highest leader of the company.
- In charge of making decisions and general strategy for the company.
- Has general responsibility within the company, both the company’s strengths and weaknesses.
- Occupies the main position as president/main director of a company.
CFO
- Serves as head of company finance.
- Tasked with supervising planning and all company financial administration.
- Has responsibility for finance and accounting functions within the company, supervision of staff related to finance, and understanding of applicable tax regulations.
- Holds the position of senior vice president in the company (financial affairs).
CMO
- Serves as head of company marketing.
- Tasked with overseeing the planning and marketing process of the company’s products.
- Has responsibility for market analysis, marketing processes, and collaboration on marketing strategies together with operational leaders.
- Have the ability to understand market opportunities and potential, as well as existing risks.
- Holds the position of senior vice president in the company (marketing affairs).
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7 main qualifications to be a COO
As the second highest position in the company after the CEO, Chief Operating Officer is considered to be one of the positions that is quite high for someone to achieve in the world of work or in a company. It is known that someone who can achieve this position must have high competitiveness and adequate capacity in their professional career.
According to the Harvard Business Review and career advice from Seek Australia, there are 7 main qualifications that a person must have to become Chief Operating Officer (COO) in a company. Some of them are as follows:
1. Have a relevant academic degree
The first qualification is of course a relevant or appropriate academic degree, so that it can be the basis for a COO’s qualifications. Although not everyone who holds the COO position has the relevant academic degree. However, for those of you who dream of becoming a COO, it is highly recommended that you have a qualified educational base.
Relevant academic degrees are meant not only those that are always related to business economics or a Master of Business Administration (MBA). Several other degrees are also required, provided they have quite high relevance related to company operations.
For example, the highest management in a pharmaceutical business or hospital. The degree required usually has something to do with medicine or hospital management. A relevant degree will really support a COO to better understand every complexity that occurs in his work.
Not only that, higher and relevant education can also help a COO in implementing or implementing various companies easily and precisely. As a position that is responsible for all forms of implementation, COO must be willing and able to take various risks related to company operations. Apart from that, implementing the strategy is part of the steps in maintaining the quality of the company’s business itself.
2. Having Extensive Work Experience and Being Able to Become an Agent of Change
In accordance with a wise sentence, “the best teacher is experience”. As someone who occupies the second highest position in the company, the COO must of course have extensive work experience. Not only that, this extensive work experience must also be balanced with qualified abilities and capacities. Extensive work experience and qualified capacity are proof that a person can make a significant contribution to the company.
The time it takes for someone to reach COO level is usually 10 years working in a position equivalent to that below. Not only that, the relevance of the work carried out over this 10 year period can make the experience of a prospective COO more complete and solid.
3. Able to be a mentor or have a leadership spirit
As written above, a COO is required to have extensive work experience. This ability is a benchmark that a COO must have when occupying C-Level in the company. Apart from that, a COO is usually also needed to mentor young CEOs or even company founders who don’t have much experience.
As a guide or mentor, a COO can be said to have a responsibility to be an elegant character and not closed off to other people. Even though he has the task of being a mentor, that doesn’t mean the COO is free to do whatever he wants to his subordinates. This step is usually used by some CEOs of new companies to gain experience through COOs from similar industries or businesses.
4. Becomes a balancer and completes the CEO’s experience
It is common knowledge that one of the reasons companies bring in a senior COO is not only to mentor, but also as a balance to the CEO. This balancing function itself can also be said to complement the experience of a CEO in the company.
CEOs usually need a COO with this qualification so that they don’t appear to be walking alone or have colleagues who are calmer, so they can act as a balance in various decisions or activities.
Harvard Business Review states that various large companies in the world, for example Microsoft, also need COOs with these qualifications. Bill Gates once had two COOs who needed to balance him.
The two people are Jon Shirley and Michael Hallman to balance him. Some people say that Shirley and Hallman are a balance and a “calm” side for Bill Gates. In the case of this company, a COO is basically not geared towards the CEO position.
5. Able to be a discussion partner for the CEO
In a company, the CEO can be thought of as a brain or center that exercises control. As someone who holds the highest position, the CEO still needs a discussion partner or interlocutor for strategic issues and problem solving. Hierarchically, one of the positions that must be a discussion partner in resolving various company operational problems is COO.
Therefore, a COO must also have qualifications as a partner to the CEO. In this case, the COO is required to be able to provide feedback to the CEO for all his thoughts regarding the company, both practical and psychological. This is because being a CEO is a big responsibility that is very risky. The COO role is needed to minimize risks by opening discussions, both formally and informally, to develop the company.
6. Able to Become an “Heir”
It is not surprising that the COO is often referred to as the second position in the company, after the CEO. One of the toughest responsibilities of qualifying to be a COO is being the “Heir”. The meaning of “Heir” itself is that the COO must be ready to “inherit” the company if a CEO so wishes.
The COO role, which is in second place in the company hierarchy, has the potential for this kind of inheritance. For a COO, becoming the “Heir” of the CEO is the final stage of promotion.
Although it appears that there is huge potential for a COO to rise to CEO. However, the COO must also be prepared for the big risks that await ahead. Some of the things needed to face this are of course self-readiness, both mentally and physically.
Serving as CEO will certainly take up a lot of thought and time, just as the CEO’s way of solving problems or creating strategies is also tiring. Therefore, one of the things a COO needs to learn and prepare when getting a promotion is being able to solve problems and create strategies.
7. Has Great Potential
The great potential of a COO is expected to be a personal selling point for the company. The final qualification you need to have to become a COO is great potential. A COO is expected to have great potential so that he can become a personal selling point for the company. Some observers believe that a COO candidate must have the best potential and it is too valuable to be wasted.
So, it is not surprising that some companies give promotions to someone with extensive experience and who has been in the top senior management ranks and has played a very good role.
Someone who has bargaining power and high selling points is usually a senior level employee and has proven to be very familiar with the ins and outs of the company. Plus, the company will think hundreds of times about releasing someone with great potential and qualifications from the company. With the release of someone with such great potential, they will have the potential to become a competitor.
Of course, this can be avoided, one way is by giving promotions to senior employees, so that they sit in the position of COO. The appointment of an outstanding senior employee as COO will certainly make the company’s future more secure and the CEO will not need to be confused about finding balanced colleagues.
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Closing
If you listen to the review above, the position of COO can be said to be an achievement that should be pursued by an employee with extensive experience in the company. Even though it requires a lot of experience and flying hours, a person’s capacity is able to move ahead of time. This makes this position achievable even by someone who is still young.
Therefore, for Mudalovers who have a dream of leading a company. For young people, you certainly have to be optimistic about reaching C-Level in a company. You can develop capacity and quality while gaining experience.
This will really help you in mastering the operational sector in the company. Great potential and qualified qualities will certainly ultimately lead you to the position of COO.
This is a complete discussion about the Chief Operating Officer , starting from the definition, duties, types, and qualifications.