There are a lot of large companies out there that large enough and require the assistance of CEO and COO. However, do you know the difference between ceo vs. coo?
Some may also ask, what’s so different about them when these two have seemingly similar tasks and obligations?
CEO and COO are two of the top positions within one company. While the chief operating officer ensures the executing of business plans, the CEO answers to a board of directors and mainly takes responsibility for the success or failure of the company.For that reason, in this article, we will explain some main differences and as well as their position in one company.
What is a CEO?
Chief Executive Officer, or in short CEO, is the highest-ranking person in the company. His job is to take responsibility, formulate business ideas, and make strategic decisions, which can positively or negatively affect the future of the company.
As we mentioned before, the CEO answers to a board of directors, and at the end of the day, this executive is responsible for all of the operations. On top of that, these operations are developed as an input of other top executives, such as COOs and CFOs; however, the final decision belongs to the CEO.
As a leader, this executive should have great communicational skills.
Here are some main responsibilities:
Must ensure that employees are accountable
Has to evaluate the performance of executives
Determines which areas need improvement
Maintains open communication with board members and employees
What is a COO?
COO is generally the second in command in large corporations and just behind the CEO. His responsibilities may vary significantly and depend on the company. However, generally, the COO must ensure that the company meets certain standards, as well as reach particular visions.
Usually, COO oversees the work of the management, reads data and reports, and interprets responsibilities. This executive must uphold the great pressure and work long hours to achieve the company’s objectives.
Here are some COO responsibilities:
Works with analysts, while reviewing financial numbers and assets
Handles the financial efficiency of one company
Executes strategies imposed by CEO
Finalizes agreements and contracts
Who holds the higher position?
CEO is the highest-ranking position in the company; therefore, he is the number one, while COO is the second in command. However, some smaller companies don’t have COO, while CEO could be the founder of the chair of the board.On the other hand, as companies develop and grow over time, they might need to hire a COO to provide help to the CEO and manage all internal operations.
What the difference between them?
If we would explain the difference between the CEO and COO, then we would say that the CEO is in charge of where the company is going, while the COO ensures how the company will get there.To simplify things, even more, the CEO has the vision of the company, while the COO executes that vision. While these job positions might seem a bit simple, there two have high-level responsibilities that directly affect the success of the business.
CEO relies on COO to managed daily tasks and offers an insight into how the organization changes over time. Additionally, the COO should make strategic decisions and set up company procedures once they receive directions from the CEO.
Of course, the majority of us would grab an opportunity to become one of these two. However, this is a long path, only dedicated, hardworking, and skilled employees can achieve. After all, each executive position carries a huge responsibility.Therefore, sometimes you will need to give up a certain position to avoid leading a company into bankruptcy.