Chief operating officer

Description

Chief operating officers are the right hand and second in command of a company’s chief executive officer. They ensure that the daily operations of the company run smoothly. Chief operating officers also develop company policies, rules and goals.

Other titles

The following job titles also refer to chief operating officer:

company deputy chief executive officer
chief operating officer
chief operations officer
managing director
deputy chief executive officer
executive vice-president
acting general manager
chief administrative officer

Minimum qualifications

Bachelor’s degree is generally required to work as chief operating officer. However, this requirement may differ in some countries.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Chief operating officer is a Skill level 4 occupation.

Chief operating officer career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to chief operating officer.

chief executive officer
branch manager
business manager
department manager
strategic planning manager

Long term prospects

These occupations require some skills and knowledge of chief operating officer. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of chief operating officer with a significant experience and/or extensive training.

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of chief operating officer.

Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Marketing management: The academic discipline and function in an organisation which focuses on the market research, market development, and the creation of marketing campaigns to raise awareness on the company’s services and products.
Business process modelling: The tools, methods and notations such as Business Process Model and Notation (BPMN) and Business Process Execution Language (BPEL), used to describe and analyse the characteristics of a business process and model its further development.
Company policies: The set of rules that govern the activity of a company.

Essential skills and competences

These skills are necessary for the role of chief operating officer.

Integrate strategic foundation in daily performance: Reflect on the strategic foundation of companies, meaning their mission, vision, and values in order to integrate this foundation in the performance of the job position.
Conclude business agreements: Negotiate, revise, and sign mercantile and business documents such as contracts, business agreements, deeds, purchases and wills, and bills of exchange.
Ensure lawful business operations: Comply with legislation in the daily operations of a company
Establish collaborative relations: Establish a connection between organisations or individuals which may benefit from communicating with one another in order to facilitate an enduring positive collaborative relationship between both parties.
Lead managers of company departments: Collaborate and guide the managers of the departments of a company in terms of the objectives of the company, the actions, and expectations required from their managerial scope.
Analyse business objectives: Study data according to business strategies and objectives and make both short-term and long-term strategic plans.
Show an exemplary leading role in an organisation: Perform, act, and behave in a manner that inspires collaborators to follow the example given by their managers.
Evaluate performance of organisational collaborators: Evaluate the performance and results of managers and employees considering their efficiency and effectivity at work. Consider personal and professional elements.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Abide by business ethical code of conducts: Conform and follow the ethical code of conducts promoted by companies and businesses at large. Ensure that operations and activities do comply with the code of conduct and ethical operations the supply chain throughout.
Negotiate with stakeholders: Negotiate compromises with stakeholders and strive to reach the most beneficial agreements for the company. May involve building relationships with suppliers and customers, as well as ensuring products are profitable.
Track key performance indicators: Identify the quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their operational and strategic goals, using preset performance indicators.
Delegate activities: Delegate activities and tasks to others according to the ability, level of preparation, competence and legal scope of practice. Make sure that people understand what they should do and when they should do it.
Develop professional network: Reach out to and meet up with people in a professional context. Find common ground and use your contacts for mutual benefit. Keep track of the people in your personal professional network and stay up to date on their activities.
Plan medium to long term objectives: Schedule long term objectives and immediate to short term objectives through effective medium-term planning and reconciliation processes.
Get involved in the day-to-day operation of the company: Collaborate and perform hands-on work with other departments, managers, supervisors, and workers in different aspects of the business from preparing accounting reports, envisioning the marketing campaigns up to having contact with clients.
Shape organisational teams based on competencies: Study the profiles of collaborators and decide the best place for directors and collaborators following an strategic mindset and serving to the goals of the company.
Make strategic business decisions: Analyse business information and consult directors for decision making purposes in a varied array of aspects affecting the prospect, productivity and sustainable operation of a company. Consider the options and alternatives to a challenge and make sound rational decisions based on analysis and experience.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of chief operating officer. However, mastering this knowledge allows you to have more opportunities for career development.

Financial management: The field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value increase of corporations due to managerial decision-making.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of chief operating officer. However, mastering these skills and competences allows you to have more opportunities for career development.

Apply export strategies: Follow and implement strategies according to the size of the company and possible advantages towards the international market. Set goals to export products or commodities to the market, in order to minimize risks for potential buyers.
Imprint visionary aspirations into the business management: Integrate ambition and visionary plans in both the planning and the day-to-day operations in order to set goals for the company to strive for.
Interact with the board of directors: Present the results of the company, answer questions in regards to the organisation, and receive guidelines on the future perspectives and plans for the company.
Develop organisational policies: Develop and supervise the implementation of policies aimed at documenting and detailing the procedures for the operations of the organisation in the lights of its strategic planning.
Implement operational business plans: Implement the strategic business and operational plan for an organisation by engaging and delegating to others, monitoring progress and making adjustments along the way. Evaluate the extent to which strategic objectives have been achieved, learn lessons, celebrate success and recognise people’s contributions.
Define the corporate structure: Study different company structures and define the one that best represents the interest and goals of the company. Decide among horizontal, functional, or product structures, and managerial independency in the case of multinationals.
Follow the statutory obligations: Understand, abide by, and apply the statutory obligations of the company in the daily performance of the job.
Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
Set organisational policies: Participate in setting organisational policies that cover issues such as participant eligibility, program requirements, and program benefits for the service users.
Liaise with shareholders: Communicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.
Apply import strategies: Follow and implement strategies for importing according to the size of the company, the nature of its products, the available expertise, and business conditions on the international markets. These strategies include procedural and strategic issues and involve the use of customs agencies or brokers.
Shape corporate culture: Observe and define the elements in the corporate culture of a company in order to reinforce, integrate and shape further the codes, values, beliefs and behaviours aligned with the company’s aims.
Develop revenue generation strategies: Elaborate methodologies through which a company markets and sells a product or service to generate income.
Integrate shareholders’ interests in business plans: Listen to the perspectives, interests, and vision of the owners of the company in order to translate those guidelines into pragmatic business actions and plans.
Develop company strategies: Envision, plan, and develop strategies for companies and organisations aimed at achieving different purposes such as establishing new markets, refurbishing the equipment and machinery of a company, implementing pricing strategies, etc.
Define organisational standards: Write, implement and foster the internal standards of the company as part of the business plans for the operations and levels of performance that the company intends to achieve.
Assume responsibility for the management of a business: Adopt and assume the responsibility that entails running a business, prioritising the interest of its owners, the societal expectation, and the welfare of employees.
Build international relations: Build positive communication dynamics with organisations from different countries in order to build a cooperative relationship and optimise information exchange.
Develop business plans: Plan, write and collaborate in the implement business plans. Include and foresee in the business plan the market strategy, the competitive analysis of the company, the design and the development of the plan, the operations and the management aspects and the financial forecast of the business plan.
Implement strategic planning: Take action on the goals and procedures defined at a strategic level in order to mobilise resources and pursue the established strategies.

ISCO group and title

1120 – Managing directors and chief executives

 

 


 

 

References
  1. Chief operating officer – ESCO
Last updated on August 8, 2022