Chief Operating Officer (COO): Job Description, Education & Salary

COO requirements are generally the same as top executives and may vary by organization, industry, and position. In general, chief operating officers are expected to have some formal education and work experience. Additional requirements depend on the approach the business takes. There is a generalist approach, which may be perfectly fine for some organizations. Still, other organizations may require a detailed, knowledgeable individual in manufacturing, sourcing, quality assurance, accounting, and a clear understanding of profit and loss (P&L) variables. This P&L knowledge helps the company assure that sales prices, sales operations, and all associated variable expenses (materials, distribution, traffic) are managed and controlled.

COO Education

COO education is an essential factor in being considered for the position. However, an individual must demonstrate the ability to utilize the education foundation and apply it to the company's needs. COO education requirements include a bachelor's degree. Holding a COO position without a bachelor's degree is very rare.

Students may begin their studies with a Bachelor of Arts (BA) or Bachelor of Science (BS) in Business Administration or Business Operations. On occasion, depending on an individual's flexibility and business acumen, an undergraduate degree in another field could be possible.

Business administration degrees are targeted at ascertaining and developing efficient day to day operations. On the other hand, business management degrees concentrate on more of an overall company picture, focusing on growth or expansion. For individuals seeking more day-to-day troubleshooting, affecting change, and inspiring employees to reach company goals type of position, a business operations degree might be more helpful. By definition, administration implies a general approach to day-to-day issues with a company, but operations become more specific.

At the master's level, students may wish to begin specializing in business areas more closely related to management or the position they are targeting in their career. For example, an individual could choose a Master in Business Administration degree with a specific business, production, or operations management concentration.

Included at both the bachelor's and master's level of degrees should be a flexible list of accounting and finance (budget and profitability), marketing and sales (achieving product fundamentals and availability), and information systems (enterprise software, operations, and measurement).

Work Experience

Like many kinds of managers and executives, COOs need to have well-rounded experience in multiple disciplines. Typically, these professionals work their way up from lower-level positions. They may first become entry-level employees in the company and become operations supervisors, operations managers, operations directors, or hold similar jobs before becoming COO.

COO candidates demonstrate their ability to work with other departments determining what is going well and what is not. The candidate's ability to effectively work with other team members to solve and implement positive change is a telling characteristic.

A chief operating officer is considered a CEO's (chief executive officer's) right hand. Due to their performance and knowledge, others rely on the COO's assistance, especially in detailed solution environments. CEOs are useful in multiple areas but more specifically on company growth and profitability. A good COO compliments the CEO by taking the day-to-day worries from the CEO's plate.

Candidates for COO positions should expect to wear many hats in the company and be an enthusiastic participant in any area of opportunity. Demonstrating good teamwork skills and support for others is a crucial attribute to acquire.

Optional Certification

An individual can obtain professional certification in multiple disciplines. One discipline that demonstrates well-rounded operations examination and implementation is Six Sigma. Achieving a Lean Six Sigma Black Belt reflects the ability to analyze and troubleshoot areas requiring improvement. The concepts of DMAIC (define, measure, analyze, implement, and control) are part of this training. This certification demonstrates the capability to assist all areas of the company. Like any other program, a successful COO will approach improvement in a restrained manner, one that allows for a variety of employee positions to contribute to solutions and one that does not alienate critical contributors. This ability is a crucial characteristic of a successful, well-respected COO.

According to the U.S. Bureau of Labor Statistics (BLS), in May 2019, the median salary for general and operations managers was $100,780, and the median salary for chief executives was $184,460. Depending on the industries, median annual wages could vary from government at $110,230 to manufacturing at $208,000 or more for top executives. For general and operations managers, the median yearly salary could differ from retail at $73,190 to professional, scientific, and technical services at $140,840.

PayScale.com reported that COOs made an average salary of $144,175 as of December 2020. This salary did vary with factors like bonuses, specific skill sets, and work experience. For example, the website reported that COOs with 20 years or more of experience made an average salary of $171,169.

Salary and benefit packages should always be considered whole. Individuals should choose the company they like the most and feel they could contribute to overall job satisfaction.