CEO vs. COO: Responsibilities of CEOs and COOs

A chief operating officer (COO) is a corporate executive in charge of overseeing the operational functions of a business, which might include staffing, administration, and company strategy. A COO, sometimes called the “executive vice president of operations” or the “operations director,” is often the second in the chain of command after the chief executive officer.

A COO is a member of the C-suite, which refers to the C-level executives making up a company’s management team. Other members of the C-suite include the CEO, the chief financial officer (CFO), chief information officer (CIO), chief marketing officer (CMO), and the chief technology officer (CTO).

Chief executive officer, or CEO, is the job title afforded to the highest-ranking executive at a company. The primary role of the CEO is to formulate, guide, and maintain the company’s strategic plan and be responsible for the company’s big picture decisions: its overall direction and profitability. The CEO also oversees the company’s C-level or top executives and ensures that senior management adheres to the company’s business decisions.

A CEO is the primary conduit between the senior executives and the board of directors at a company and reports directly to the board on business development matters. In some cases, the CEO may have a seat on the board and even serve as its chairman. The board members set the responsibilities of a CEO which, depending on the company’s size, may include everything from public relations to overseeing causes related to the organization’s mission statement.

There are several notable differences between a COO and a CEO.

• Hierarchy: The CEO oversees the business operations of the entire company. All C-level executives report to the CEO, including the COO. The COO is typically the right hand of the CEO. Though COOs have authority to make their own decisions on matters within their purview, the CEO is able to change or even veto their recommendations.
• Primary responsibilities: The CEO is responsible for crafting the company’s vision. They are often the public face of the company and are responsible for public relations. In addition, the CEO is responsible for implementing critical initiatives determined by high-ranking stakeholders, like the board of directors. They determine both the short-term and long-term strategies for the company as well as the mission, values, and vision. On the other hand, the COO's responsibility is to take the CEO’s vision for the company and translate it into an actionable business plan. The COO handles daily operations and internal affairs. The COO is responsible for ensuring that the company's day-to-day operations are aligned with the business model and long-term goals.
• Skill sets: A good CEO will possess excellent leadership skills, management capabilities, and solid communication. A COO focuses more on implementation decisions, and they must be highly organized, process-driven, analytical, and detailed-oriented.

Get the MasterClass Annual Membership for exclusive access to video lessons taught by business luminaries, including Geno Auriemma, Robin Roberts, Chris Voss, Sara Blakely, Daniel Pink, Bob Iger, Howard Schultz, Anna Wintour, and more.