CEO vs COO

The CEO and COO of a company have separate obligations. Top executives make important choices, manage operations and resources, and communicate with the board of directors as the CEO. CEOs set the company's strategy, purpose, and vision and ensure long-term objectives are met. The CEO represents the company to consumers, investors, and the public.

However, the COO is generally the second-highest executive in a company and manages everyday operations and the CEO and board's strategic ambitions. To run business operations smoothly, the COO optimizes operational efficiency, supervises manufacturing, supply chain management, and customer service, and implements rules and procedures. Some COOs manage strategic initiatives or company units, depending on the organization and industry.

The CEO sets the company's direction and vision, but the COO executes it and meets strategic objectives. The CEO sets strategy, and the COO manages operations to achieve goals.

Example of CEO & COO

Fast-growing mobile app company TechSavvy is led by CEO and co-founder John. He develops TechSavvy's strategy, raises funding, forms partnerships, and promotes it to investors and the tech community.

However, Sarah is TechSavvy COO. She oversees firm operations to achieve John's strategic aim. Sarah handles marketing, sales, customer service, and product development. Sometimes, John decides TechSavvy should introduce a new app for a different market. He gives Sarah the plan, and she and the product development team decide the new app's features, timeline, and budget. She works with marketing and sales to organize a launch and identify clients and partners.

Sarah experiences resource allocation and timeline challenges throughout the project. John helps her overcome these issues once she discloses them soon. They meet the company's strategic objectives and market needs by launching the new app. John sets TechSavvy's strategic direction as CEO, while Sarah supervises everyday operations and ensures key initiatives succeed as COO. TechSavvy's success in the competitive tech industry relies on collaboration and complementary abilities.