COO vs CEO: Difference and Comparison

Key Takeaways

1. The COO (Chief Operating Officer) oversees a company’s day-to-day operations and ensures efficient business processes.
2. The CEO (Chief Executive Officer) sets the company’s strategic direction and makes high-level decisions.
3. COOs focus on operational aspects, while CEOs concentrate on long-term planning and overall growth.

What is COO?

COO is the abbreviation for the company’s senior corporate executive, Chief Operating Officer. A COO has to look after the daily administration and operations going on in the company. A COO’s prominent role and responsibility are to execute the business plan specified by the CEO.

The COO works with the company’s CEO (Chief Executive Officer) and CFO (Chief Financial Officer). Also, they are the second in line and must finally report to the company’s CEO. They are the one who is responsible for maintaining a positive working climate among the employees to motivate them for better results.

The primary focus of a COO is to look into the company’s internal affairs. In different companies, the role and responsibility of a COO vary. They are found in large firms and do not have any ownership in the company.

What is CEO?

CEO is the abbreviation used for the company’s most senior corporate executive, Chief Executive Officer, and all the board members elect a CEO. A CEO has to manage the entire organization. In a hierarchy, the CEO is the first in line.

Their prominent role and responsibility are to make long-term decisions and create plans and new strategies for the business. Their roles keep changing based on the concern’s structure, type, nature, and needs.

CEO is the link between the operations executing in the company and the board of members. They are directly answerable to any company’s (BOD) Board of Members. If the company is a non-profit organization, they are accountable to the governor. CEO is said to be the reason for any company’s success or failure.

CEO has to behave with complete sincerity and honesty while following all the codes of conduct and values.

Difference Between COO and CEO

1. COO is the abbreviation used for the Chief Operating Officer, whereas the other hand, CEO is the abbreviation used for the Chief Executive Officer.
2. In a hierarchy, the COO is the second in line, whereas, on the other hand, in a hierarchy, the CEO is the first in line.
3. The responsibility of the COO is to administer and look after daily operations; on the other hand, the responsibility of the CEO is to manage the organization.
4. COO has to report directly to the CEO of the company, whereas, on the other hand, the CEO has to report directly to (BOD), i.e., the company’s Board of Directors.
5. The vision of the COO is to work on the formulated plan by the CEO, whereas, on the other hand, the vision of the CEO is to create the agenda for the company’s growth.
6. The COO is not a shareholder in the company, whereas, on the other hand, the CEO is the major shareholder in the company.
7. The COO is not always present in a company, whereas on the other hand, the CEO is a position that is present in the company. 
8. The COO mainly focuses on the company’s internal affairs; on the other hand, the CEO concentrates primarily on the company’s external affairs.

Comparison Between COO and CEO

Parameter of Comparison	COO	CEO
Full Form	Chief Operating Officer	Chief Executive Officer
Hierarchy	They are second in line	They are first in line
Responsibility	Administration and daily operations	Managing the organization
Reporting	CEO of the company	Board of directors (BOD) of the company
Vision	Works on the plan formulated by the CEO	Creates the agenda for the company’s growth
Ownership	Not a shareholder	Major shareholder
Necessity	It might not be present in every company	Present in every company
Focus	Internal Affairs	External Affairs

References

1. https://www.emerald.com/insight/content/doi/10.1108/JMTM-01-2021-0024/full/html
2. https://psycnet.apa.org/record/2008-12235-016

Last Updated : 29 July, 2023