The job descriptions of a COO and a director of operations differ considerably. The difference between the two positions is reflected in the decision rights, reporting structures, and spans of control. However, in practice, the roles of the COO and a director of operations are often identical.
VP of operations
As the head of a company's operational team, a VP of operations should have extensive knowledge of business principles and an understanding of the industry. While he does not necessarily need to be a computer geek, he should be comfortable working with Microsoft Office Suite, product management software, and other tools. He may also be required to work closely with the Human Resources department. Therefore, he should be well-versed in talent scouting and personnel management.
The job of a COO entails working closely with other executives and translating the strategic vision of the C-suite into operational plans and policies. A COO is less likely to be promoted to a higher position than a VP of operations, but some companies consider the position a stepping stone to becoming the CEO. Traditionally, a VP of operations is a long-term forecaster and decision-maker. At the same time, a COO is more focused on the day-to-day structure and efficacy of the operations team. Both roles use metrics and data to make decisions.
Whether or not a VP of operations or COO is better suited for your company depends on the specifics of your business. While a COO can bring operations to scale comprehensively and quickly, a VP of operations is more suited to improving operations. The role of a COO can also depend on the needs of the market and disruption.
A VP of operations is a senior executive who oversees a company's operations department. They use strategic decision-making skills to ensure that a business runs smoothly and sustainably. Their role also impacts the organization's strategic vision and overall effectiveness. They must be able to oversee every aspect of the organization.
While a vice president of operations is the general manager of a department, an operations manager oversees various functions and is responsible for overall performance. This role is typically not as broad as a president's but is usually more focused. Their responsibilities include setting up a suitable work environment and implementing the appropriate toolsets. Nonetheless, the responsibility for the work results will still fall on the functional and divisional leaders.
COO
The COO oversees a company's day-to-day activities. He must be able to multitask, balance, and consider the needs of each department. His job also requires him to consider the company's overall goals. In addition, he must be able to understand the CEO's goals and objectives.
The COO is a company's second-in-command. He manages the company's internal affairs and develops a plan for its growth. He reports to the CEO in most cases and is the second in command. Some other names for the position include Operations Director, Chief Operations Officer, and Director of Operations.
As the C-suite executive, the COO works closely with other executives and provides key insights into the company's operations. He will translate the C-suite's strategic vision into actionable plans and policies. A COO typically has a more hands-on role with the operations team and oversees day-to-day operations.
A COO must possess excellent leadership and communication skills to lead the company and its teams. This person needs to inspire the workforce and improve the company's culture. They should also know how to celebrate their teams' victories and help them feel proud and inspired. These actions will boost morale and productivity.
Operations Manager
A Chief Operating Officer (COO) is an executive position in a company. They oversee the day-to-day operations of a company and are responsible for the overall performance of those operations. Their role is often not as broad as an Executive Director's, and they may have less authority over individual employees. Their role may include ensuring the right tools and environment are in place to improve performance and reduce costs. While they are responsible for determining how the company will spend its money, responsibility for the final work result will remain with the functional or divisional leaders.
While both have similar responsibilities, the difference in titles and responsibilities can come down to the company's structure and industry. A COO is a C-level executive reporting directly to the CEO or president. The role tends to have little upward mobility, but some COOs advance to CEO positions. In fact, many organizations view becoming a COO as a prerequisite to becoming a CEO. A COO focuses on the day-to-day structure and efficacy of the operations team, while a VP of operations focuses on the longer-term vision and decision-making process. Both executives use metrics and data to make strategic decisions.