What is a COO?
A COO manages the day-to-day operations of a company to align with overall business goals. Learn more about what a COO does and how to hire a COO.
April 9th, 2025
A COO is an executive who oversees an organization's daily operations and ensures they align with strategic business goals. Often seen as second-in-command to the CEO, the COO helps coordinate activities across departments, including finance, marketing, and human resources to boost efficiency and drive long-term success.
What does COO stand for?
COO stands for "chief operating officer."
What does a COO do?
"Chief of operations" might sound a bit overwhelming and all-encompassing---because it often is. Sitting just below the CEO in an organizational hierarchy, the COO can be responsible for everything from streamlining workflows to developing new teams. While COO duties can change depending on each company's needs, in general, they're trusted with implementing the overall strategic vision and keeping business operations running smoothly.
What are the core responsibilities of a COO?
So, what does managing operations entail, exactly? Drilled down to a few vital services, the core responsibilities of a COO include:
- Overseeing daily operations: COOs are usually tasked with managing a company's day-to-day business operations and delegating tasks to leaders across various departments.
- Implementing strategic vision: As skilled organizational leaders, COOs should be able to translate a company's overall objectives into actionable plans and strategies with clear deliverables.
- Optimizing processes: With an eye towards increasing productivity, COOs can analyze workflows to spot roadblocks and develop strategies to yield better outcomes.
- Developing teams and talent: COOs might collaborate with HR leaders to build employee training, development, and mentorship programs---and create a culture of continuous learning.
- Leading innovation: As they keep an eye on the latest market trends and tools, COOs can help companies adopt new technologies to automate and streamline processes.
What important skills should a COO have?
Since COOs can wear many different hats within an organization, they should bring a wide and in-depth range of competencies to the executive table.
That is, a COO should have cultivated strategic, interpersonal, and technical skills, like:
- Strategic thinking: Align operational activities with the organization's overall goals and vision.
- Research and analysis: Study market trends and make data-driven decisions to develop new strategies that drive future growth..
- Leadership: Motivate and manage teams to improve productivity and reach departmental goals.
- Communication: Clearly articulate strategies, provide actionable feedback, and actively listen to team members and stakeholders at all levels of the organization.
- Financial acumen: Use budgeting, forecasting, and financial planning to best allocate resources.
- Problem-solving: Analyze complex problems and offer creative, data-driven solutions to fuel transformation.
What are the various types of COOs?
COOs can come in many forms---from specialized problem-solvers to team mentors and transformational leaders. And they might be hired for different reasons depending on each organization's needs and executive team structure.
More specifically, common types of COOs include:
- The Executor: Implements strategies to meet concrete KPIs and oversees everyday operations so the CEO can focus on long-term goals.
- The Change Agent: Addresses specific organizational challenges or leads major initiatives, like expansions and mergers.
- The Mentor: Develops internal talent to build a pipeline of leaders and ensure long-term success.
- The CEO Foil: Supports the CEO with their unique strengths, be it team leadership and development or analytical problem-solving..
- The Innovator: Recommends new technologies to help businesses adapt to an ever-changing market.
Who does a COO report to?
A COO typically reports to the CEO to ensure operational alignment. But they may also collaborate with other executives, like the chief financial officer (CFO), chief technology officer (CTO), chief marketing officer (CMO), and chief human resources officer (CHRO), to keep teams on track towards business goals.
Who reports to a COO?
As the head operational executive, the COO typically has direct reports from various department leaders and managers, such as the VP of operations, director of human resources, head of product, and business development leaders.
How does someone become a COO?
There isn't always one clear path to becoming a COO. These executives often build their careers with a combination of academic achievements and in-depth professional experience.
In fact, the two most important prerequisites to becoming a COO include:
- Education: COOs should have at least a bachelor's degree in business administration, finance, or a related field. Many go on to pursue advanced degrees such as a Master of Business Administration (MBA) or Executive MBA.
- Experience: COOs typically have at least 10-15 years of management experience in departments like marketing, sales, operations, or business development. They may advance through management roles within the same organization or diversify their expertise across industries and companies. Ultimately, their experience should help demonstrate proficient leadership, problem solving, and strategic planning skills.
What is the difference between a COO and a fractional COO?
For organizations that need operational leadership but without the full-time executive price tag, there is a solution: the fractional COO.
A fractional COO is a part-time executive who provides strategic leadership and guidance at a fraction of the cost of a full-time COO. That is, fractional COOs and full-time COOs often provide the same services, but fractional COOs are more cost-effective and flexible. Fractional COOs pull from their diverse experiences to help organizations expertly navigate operational changes, streamline processes, adopt new technologies, and develop teams to meet business goals. Since they work on contract, they can customize their services and engagement to meet each company's needs.
How do I hire a COO?
As with any executive, hiring a COO can be a complex and lengthy process---and it's a big decision for any organization.
To effectively hire a new COO, companies generally have to follow these steps:
- Define your needs: Analyze your company's operational capabilities and set specific goals you might need your COO to meet, like automating processes or developing new teams..
- Create a compelling job description: Outline the skills, experience, and preferred qualifications of your ideal candidate.
- Source candidates: Share your listing on relevant job boards and ask for referrals from your professional network. You can also partner with an executive recruitment firm to build a customized list of highly qualified applicants just for you.
- Screen potential hires: Conduct interviews and assessments to evaluate each candidate's skills, experience, and cultural fit. Also, run background checks and follow up with references for more information.
- Gather stakeholder feedback: Make sure board members, executives, and company stakeholders are all aligned on their choices.
- Extend an offer: Negotiate contract terms like compensation, benefits, and relocation, tailoring your offer to the candidate's experience.
- Onboard the new hire: Provide your COO with the training, tools, and introductions they need to begin working in their new role.
How long does it take to hire a COO?
Hiring a COO typically takes two to six months, depending on many factors like when candidates are available and how rigorous your interview process is. That means, if you're urgently looking for new leadership, you might be left with a big gap in your executive hierarchy for half a year. Or, even if you're looking to make a smooth transition between COOs, your market could go through major changes before your new executive even finishes onboarding.
How much does it cost to hire a COO?
The cost of hiring a full-time COO depends on many factors, like the candidate's experience, location, industry, and services. Total compensation for a full-time COO can range from $300,000--600,000 annually---not including benefits packages, bonuses, profit sharing, and relocation expenses. Remember that COO salaries in competitive industries like fintech can range even higher.
Why should I hire a fractional COO?
Fractional COOs can be operational life-savers for organizations that need ongoing leadership or specialized experts who can quickly make an impact.
Whether you're looking to cut out inefficiencies or develop new strategies to scale growth, fractional COOs are available to provide:
- Cost-effective leadership: Access strategic expertise at a fraction of the cost of full-time COOs. Growing organizations can use these savings to invest in other areas like marketing and product development.
- Fresh perspective: Fractional COOs bring diverse experiences from across industries, offering valuable insights and an unbiased viewpoint. Since they're used to working with new companies, they also come prepared to quickly adapt, spot inefficiencies, and drive change.
- Flexibility: As on-demand executives, fractional COOs can be contracted for specific projects or long-term retainers---and onboarded within days. They can also ramp up their engagement during growth phases and pull back during stable periods, providing high-level expertise as you need it.
Ready to access operational leadership at a more affordable cost? Learn more about how to hire a fractional COO for your business.
