Chief operating officers like the COO at DLA Piper are typically responsible for managing the operations of a business. In some cases, they are the highest officer within a business if the business doesn’t employ a CEO. In some organizational structures, vice presidents and heads of departments may report to the COO who will then report to the Board of Directors. COOs lead companies in the operational and administrative areas and are responsible for managing the finances, conducting quality control, handling personnel, analyzing internal systems and making decisions concerning business processes.
Strategic Planning
Most COOs are expected to participate in the strategic planning of a business. They help develop the company’s strategic plan, such as the annual operating budgets and operating policies. They are expected to design the budgets and policies to meet the goals of the company that are set forth by the Board of Directors.
Financial Management
COOs are usually the ones who a company turns to oversee their monthly, quarterly and annual financial statements. They are also supposed to ensure that accounts payable, accounts receivable, payroll, budgeting, cash management and banking procedures are all conducted appropriately at all times. They are especially expected to handle sales and general administration costs, operations costs, inventory costs and turns and profits and losses statements. Consequently, because COOs deal with such complex areas of finance, they are expected to be well-versed in accounting, also known as the language of business.
Human Resources
COOs oftentimes deal with human resources issues as well. They might be involved with recruiting new staff, making changes to existing personnel and more. They might also have to oversee benefits administration and policy development as well as their company’s infrastructure concerning its administrative staff and the office environment that employees work in.
Contract Management
COOs might sometimes even be required to help assist in contract management. They might be expected to oversee contract negotiations, resolve contractual issues and develop pricing and proposal strategies to assist with bidding for contracts. For instance, COOs might be consulted with issues of business mergers or acquisitions arise.
Leadership
Because COOs are in a leadership position, it is essential that they possess sound leadership skills. They must be able to analyze information diplomatically and made decisions based upon what is best for the company that they work for. They must also be apt communicators in both the written and oral forms since they will be expected to communicate in both internal and external operations. They should be skilled at public speaking and able to communicate effectively within the organizational hierarchy.
Disciplinary Duties
COOs are sometimes required to exercise disciplinary duties. For instance, in situations when company policy has been broken by an employee, the COO is oftentimes the one who must dole out the consequences for the break in policy. Likewise, COOs are usually the ones called upon to act as referees during tense situations while trying to keep the atmosphere positive to encourage growth and learning. COOs are also the ones who are expected to conduct layoffs for many organizations when necessary.
COOs are crucial elements to the businesses that employ them. They oversee some of the most important aspects of the businesses that determine how smoothly the business’s operations go. Noted leaders in their organizations, it is also important they reflect positive images of themselves for their organizations since they are oftentimes key symbols of them.
