With the proper training, experience, and skills, an individual can fill this role in a variety of organizations, such as a for-profit business, non-profit organization, government entity, or school.
Example of a COO
Some of the most well-known chief operating officers include Tim Cook, who served as Apple’s COO before stepping into the CEO role in 2011, and Sheryl Sandberg, the COO of Meta.
Chief Operating Officer Duties & Responsibilities
The roles and responsibilities of the COO vary, depending not only on the organization for which they work but also on how that company defines the position. There isn’t one agreed-upon list of what the job entails, and the role may also have different titles depending on the organization. A COO may be hired to accomplish some or all of the following tasks or objectives:
Execute strategies developed by the top management teamLead a specific strategic imperativeShow the ropes to an inexperienced CEOComplement a CEO’s experience or management styleProvide a partner to a CEO who does not work well aloneGroom the organization’s next CEO or test the individual to make sure he or she is right for the jobPromote someone they don’t want to lose
Often, companies turn responsibility for all areas of business operations over to the COO, and this typically includes production, marketing and sales, and research and development. In some firms, the COO’s job is to be internally focused, while the CEO is externally focused. In other firms, the COO’s mission is focused on a specific business need.
Chief Operating Officer Salary
A chief operating officer’s salary varies based on the area of expertise, level of experience, education, certifications, and other factors. They also typically earn compensation that isn’t tracked by annual wage data, including stock options and access to company-owned amenities. The Bureau of Labor Statistics (BLS) tracks COO data as part of the “top executives” category:
Median Annual Wage: $179,520Top 10% Annual Salary: More than $208,000Bottom 10% Annual Salary: Less than $43,260
Comparing Similar Jobs
People interested in a chief operating officer position also consider the following career paths, listed with their median annual salaries:
Financial Managers: $131,710Sales Managers: $127,490Administrative Services Managers: $113,030
Education, Training & Certification
To be considered for a COO position, one needs a combination of education and significant experience.
Education: The minimum educational requirement is a bachelor’s degree in business or a related subject, but many organizations prefer to hire someone with an MBA. Experience: A COO typically needs to have extensive experience within the industry or field in which the firm operates.
Chief Operating Officer Skills & Competencies
In addition to the educational and experience requirements, organizations look for COO candidates who also have soft skills such as leadership, decision-making, and communication. Here are some of the most important qualities:
Leadership: A COO must have excellent leadership skills, business acumen and ability to effectively manage, lead and supervise a multidisciplinary teamStrategy: They must excel at strategic thinking, be open to new perspectives and better ways to do things; and be creative, a visionary, and manage innovation wellCompletion-oriented: A COO must be results-drivenUnderstands finance: The COO must have a track record of successful financial managementDecision-making skills: A successful COO must have superior decision-making skillsDelegation: Must have the ability to delegate effectivelyCommunication: The COO must possess executive-level communication and influencing skills with the ability to resolve issues, build consensus among groups of diverse internal/external stakeholders, and have proven skill in negotiating and mediating conflict
Job Outlook
The BLS predicts there will be about a 6% decline in chief executive jobs between 2020 and 2030. This includes COO, CFO, and CEO positions. This negative job outlook doesn’t reflect the situation for top executives more generally. Top executive jobs are expected to grow about 8% in the same time, putting the career category on par with the broader job market.
Work Environment
COOs and other chief executives work in every type of business, from small to large, with few employees or thousands of employees. Their work often involves a high degree of stress because they bear the responsibility of making the business successful. They risk losing their jobs in a poorly performing organization. Chief executives often travel to conferences, meetings, and different business units of their company. They also interact often with many other high-level executives.
Work Schedule
Top executives often work more than 40, including weekends and evenings. As with other details of the job, this will vary depending on the needs of the company.
How To Become a Chief Operating Officer
Here are a few steps to consider if you’d like to become a COO.
Gain Experience
A chief operating officer job requires many years of experience in various facets of a company’s operations. Look for jobs in companies that allow you to move around and gain experience in different departments, or companies that have a management-training track that helps you gain more exposure to all of the company’s various operations.
Focus Your Resume
If you believe you have the work experience and educational background for the position, read COO job descriptions and highlight relevant work experience that can qualify you. Gearing your resume in this way can also reveal other areas in which you may need to broaden your experience before applying for COO jobs.
Apply
Look at job-search resources like Indeed, Monster, and Glassdoor for available positions. You may have better prospects by gaining COO experience at smaller companies before applying to larger, more established organizations. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
