There are some differences between Chief Executive Officer and CEO. CEO of the company determines the resource requirements, researches sources to raise funds, develops strategies to encourage the lenders, introduces suggestions, and submits them. He/She runs all of the operations and effectively operates human resources.
Chief Operating Officer or COO is the second-highest-ranking officer in the company, after the CEO, who supervises the routine operations, and informs the CEO about day-to-day working.
Both COOs and CEOs have a lot of duties. They both are responsible for many high-level operations. They help the company to gain success. Many people wonder about the differences between those roles, as they think that they’re almost the same. Actually, no. Keep reading to know a bit more about that.
Who is COO
The company’s COO or Chief Operating Officer is one of the senior executives, who are responsible for heading the company’s day-to-day administrative and operational activities. They’re responsible for providing the business plan as per the specified business model.
Basically, the COO works with the CEO and CFO in order to have effective work and form the company’s annual operating plan to keep the long-term operational strategy of the firm.
It is also the responsibility of the COO to care about the company’s accomplishments and also to hold a competitive position in the market. The COO is also responsible for keeping a positive work atmosphere. In this way, it would be possible to gain, retain and motivate qualified employees at various hierarchical levels.
So, basically, the company’s COO is the person who maintains as well as improves the efficiency, cost-effectiveness, and quality in the company’s operations.
Surely, each COO has his/her role in different companies. Usually, big companies have more than one COO to make it easier to take care of different aspects of the work. Of course, some organizations don’t have a single COO. He/She promotes effective growth and also guarantees operational efficiency and financial stability.
Who is CEO
Chief Executive Officer CEO is the top-most executive, in a corporate entity, who is selected by the company’s board members. He/She is the one who legislates the strategies which are officially endorsed and abode by the board.
CEO is the person, who is in charge of the organization. The responsibilities include the nature, structure, type, and needs of the concern. CEO is in charge of making corporate decisions, formulating and implementing long-term plans and strategies, managing operations and resources.
- The role and work of the CEO may vary on the basis of the size of the organization.
- The CEO is responsible for the company’s success and failure.
What are the differences between COO and CEO
The list below will display the main differences between COO and CEO:
- The COO is one of the members of the company’s executive team, whose duty is to handle regular operations and administrative functions. The CEO is responsible for leading the executive team and looking after the day to day functions and working of the concern, workforce and resources.
- While the CEO is first in the chain of command, COO is second in the chain of command.
- COO is responsible for the day to day operations and administration of the business enterprise, and CEO, is in charge of company’s management, in terms of arrangement and allocation of resources, overseeing operations, taking corporate decisions, etc.
- According to the organizational hierarchy, the company’s chief operating officer should inform the CEO. The CEO is answerable to the company’s board for the discharge of his/her role and responsibilities with an expectation that the CEO will keep the Board informed about all the factors, events, and conditions which are likely to influence or have a significant influence on the business organization.
- The COO is also responsible for providing the plans and strategies devised by the CEO. Conversely, the CEO formulates plans and strategies for the company’s growth.
- A CEO should follow authentic leadership approach as it is focused on the leader’s legitimacy and mission-oriented attitude. The COO should have exceptional leadership, so as to forecast and think about risk and crisis before they arise, and also to make the right decisions for the business.
- The company’s CEO also is responsible for management supervision and responsibility throughout the organization in order to effectively run the concern. Responsibilities of the CEO also includes providing powerful leadership both internally (to the workforce) and externally (to stakeholders).
That’s all that you need to know about the CEO and COO and the differences between them.
