The COO profession is relatively recent. At the beginning of the 20th century, many companies began to expand and become more complex its structure. There was a need for specialists who could manage daily activities Company. These specialists began to be called operational directors.

The COO profession was created to relieve the CEO of day-to-day management and allow him to focus on a long-term strategy.

Today, the work of an COO in any modern company is becoming more and more important, and here's why:

• To remain competitive in the market, companies need to continuously improve their efficiency.

• Implementing the latest technologies in production, logistics and inventory management is a task that requires operational directors of special knowledge and skills.

• Customers are increasingly demanding the highest quality of goods and services.

• Companies that are in the growth and expansion phase need COOs who are able to Effectively manage increasing production and logistics volumes.

• In times of economic uncertainty, the desire of companies to optimize costs becomes relevant through efficient inventory management, production, and logistics, which also falls on the shoulders of the COO.

• The development of new business areas, for example, e-commerce, implies the need for development of new operational approaches.

• Managing the day-to-day operations of the company: The COO manages the day-to-day operations of the company, ensuring that all departments work in concert towards common goals.

He works to ensure that these processes are as efficient as possible and use available resources. This is means streamlining workflows, innovating to increase productivity, and establishing flow work in such a way that the quality of products and services remains at a high level.

• Developing and implementing an operational strategy: The COO reviews the current state of the of the company, including processes, resources, productivity and efficiency. Based on the analysis, the short- and long-term goals to increase efficiency, reduce costs, and improve product quality.

Then a strategy is developed, management methods are selected, priorities are determined and resources are allocated.

This is followed by the implementation of the strategy through the introduction of new technologies, staff training and optimization Processes.

It is important to monitor the results and periodically adjust the strategy to adapt to market changes and new ones. Challenges. This process increases the efficiency and competitiveness of the company.

• Planning: In addition, the COO is actively involved in critical decision-making, regarding the future development of the company, as well as in the development of long-term plans. He ensures that all aspects of the company's operations were aimed at achieving the company's business goals and were in line with its strategic vision.

• Budget and expense control: The COO develops the budget, setting the main items of income and expenses. He makes sure that the actual expenses are in line with the planned ones. If deviations from the budget occur, the COO analyzes the reasons and suggests ways to do them corrections.

He also monitors that the company's expenses are directed towards achieving its goals and looks for opportunities to reduction of unnecessary costs.

The COO also ensures effective interaction with the finance department and is responsible for the preparation of financial statements.

• Improving company performance: COO finds opportunities for improvement in the company's work. It selects in which areas productivity and efficiency can be improved, Then, it establishes specific steps to improve processes.

After that, he implements innovations in the daily activities of the company and makes sure that the conceived strategy was carried out. He also analyzes how successful these changes were and how they affected the results work.

• Motivation: Motivating employees is a key task of the COO, as it directly affects the efficiency and results of the company's work.

COO strives to create a work environment where employees feel valued and know that their work matters. This may include providing access to necessary resources, opportunities for professional growth, praise for good work and the creation of a reward system that encourages high achievements.

• Ensuring compliance: One of the tasks of the COO is to ensure compliance of the company's activities with all necessary laws and standards.

The COO carefully examines the laws and standards that apply to the company's operations. Then he develops a plan actions that will help the company meet these requirements; selects specific steps and procedures for implementation of the plan.

Once the plan is developed, the COO ensures that it is implemented and regularly checks how accurately The company follows the established rules. In addition, he makes sure that all employees are well are aware of regulatory requirements by organizing their training.

The COO maintains active interaction with state and regulatory authorities in order to to ensure that the company is in full compliance with the law.

In this way, it ensures that all the necessary rules and standards are met, which is important for successful management Business.

• Control: Finally, the COO constantly monitors how the company's activities comply with the established plans and achieves goals. This includes monitoring product quality, compliance with safety standards, Comparison of actual costs with budget parameters. The COO uses a variety of tools and methods for assessing effectiveness, identifying problem areas and implementing corrective actions to improve outcomes.

1. In-depth knowledge of production, logistics, inventory management, and other aspects of the operating room Activities.

1. Ability to analyze the current situation and identify problems.

1. Ability to make decisions and act quickly.

1. Communication and leadership skills. The COO must be able to communicate with employees at all levels of the company, and to motivate them to achieve high results.

1. Readiness for change and adaptation. COO must be ready for changes in market conditions, new technologies and new consumer demands.

1. Managerial experience in production, logistics, inventory management and other aspects operating activities.

1. Experience in project management. The COO must have project management experience to effectively plan and control operational activities.

1. Experience with data and analysis. The COO must have experience in data science and analysis to make informed decisions.

1. Knowledge of business processes: The COO must have a good understanding of the company's business processes and be able to optimize them for increasing efficiency.

• Production management;

• Inventory management;

• Logistics;

• Quality control;

• Occupational safety;

• Financial planning;

• Personnel management.

Example:

Company N is faced with the task of reducing the production time of one of its notebook lines without sacrificing quality.

Purpose:

Reduce the production time of a new series of laptops while maintaining product quality.

Main tasks:

1. Speed up production processes.

1. Increase employee productivity.

1. Optimization of the component procurement system.

1. Tightening quality control.

1. Audit of the current production process.

• Analysis of the duration of all production areas and identification of bottlenecks.

• Assessment of the quality of products.

2. Optimization of production processes.

• Introduction of the principles of lean production to eliminate unnecessary operations.

• Automation of assembly and packaging lines for increased speed of work.

3. Personnel development and training.

• Organization of training programs for advanced training.

• Introduction of a motivation system to increase work efficiency.

4. Optimization of the procurement and inventory management system.

• Negotiations with suppliers to reduce delivery time.

• Applying the JIT (Just-in-Time) concept to minimize storage costs.

5. Improving the level of quality control.

• Introduction of additional control measures at all stages of production.

• Development and implementation of quality standards for components.

6. Testing changes.

• Launch of a test project on one production line to assess the effectiveness of changes.

• Analysis of the results and adjustment of the plan based on the data obtained.

7. Dissemination of successful practices.

• Extension of the application of successful innovations to all production lines.

• Constant monitoring and, if necessary, adjustment of implemented solutions.

The Executive Director is the key actor in the implementation of the plan, ensuring coordination between different departments, making strategically important decisions and monitoring the progress of tasks.

COO (Chief Operating Officer) is the chief operating officer who is responsible for the day-to-day activities of the company, ensuring its uninterrupted operation and achievement of its goals. Responsibilities of COO includes production organization, inventory management, logistics, quality control and other aspects of the operating room Activities.

CEO (Chief Executive Officer) is a general director who is the highest official of the company. The CEO is responsible for the strategic management of the company, makes key decisions and represents the company in external relations.

CFO (Chief Financial Officer) is a financial director who is responsible for financial planning, budgeting, accounting and reporting of the company. The CFO analyzes financial performance, develops strategies for increase profits and reduce costs, as well as ensure compliance with financial legislation.

CTO (Chief Technology Officer) is a technical director who is responsible for technological development Company. The CTO selects and implements new technologies, develops a strategy for technological development, ensures the security of information systems and solves technical problems.

The differences between these positions are in their functions and responsibilities:

COO is responsible for operations, CEO is responsible for strategic management, CFO is responsible for finance, and CTO is responsible for Technology.

• Promotion to CEO: COO has real prospects to grow to head of the company, taking the place of the general director. Such a step is a recognition of his managerial skill and strategic vision.

• Moving to another company: The COO may seek new paths by moving to a similar or higher role in the other company. Such a company may promise more opportunities for professional growth or offer the best terms of remuneration.

• Setting up your own company: With the baggage of experience and professional knowledge, the COO may decide to open a company using your skills to build a successful company from scratch.

• Teaching and Consulting: With expertise in operations management, COO can dedicate himself to education or consulting, training the next generation of professionals or helping companies improve their operational activities.

To succeed and advance in their careers, the COO must expand their competencies and not to stop learning.

• Work experience: The more experience a COO has, the more likely it is to advance in its career.

• Education: A college degree in management, economics, or business can help a COO gain more high position.

• Skills and competencies: COO must have in-depth knowledge of production, logistics, management inventories and other aspects of operational activities. He must also have management skills, leadership, communication and decision-making.

• Reputation: A COO must have a good reputation in the company and in the industry. It can help him get more a high position or move to another company.

• Increased competition: in a market economy, companies are forced to constantly improve their competitiveness.

• Technology development: The introduction of new technologies in production, logistics and inventory management requires company to have specialists with deep knowledge and skills.

• Changing consumer demands: consumers are becoming more and more demanding of product quality and Services.

• Business Scaling: Companies that are growing and expanding their operations need Operations directors who are able to manage large volumes of production and logistics.

• The need to optimize costs: in an environment of economic uncertainty, companies strive to optimize costs. COOs are able to implement effective methods for managing inventory, production, and logistics.

• Development of new industries: The emergence of new industries such as e-commerce requires companies to development of new operating models.

COOs are in demand in various sectors of the economy, including manufacturing, trade, logistics, services and others. They can work in large companies, medium and small enterprises, as well as in state Organizations.

And your company needs COO!

And how to control the COO?

Setting KPIs (key performance indicators) for the COO depends on the goals and specifics However, the general directions for KPIs can be as follows:

• Reduction of the cost of production or the cost of operations by a certain percentage.

• Increase the productivity of each workplace.

• Reduction of waste or defects in production.

• Increase in operating margins.

• Reduction of inventory turnover or acceleration of asset turnover.

• Manage operating expenses within budget.

• Increased reliability of supply (e.g., increased OTIF – in full and on time deliveries).

• Reduce lead time.

• Increase customer satisfaction with deliveries.

• Improvement of product quality (reduction of customer complaints).

• Introduction of new technologies and launch of innovative products.

• Development and implementation of new standards to improve production efficiency.

• Increased employee satisfaction and engagement.

• Implementation of employee training and development programs.

• Reduce employee turnover.

• Reducing the number of accidents at work.

• Implementation of programs to reduce the impact of production on the environment.

Importantly! Each task (KPI) must be set correctly: clear, measurable, achievable, realistic and concrete Time.

These tasks should help the entire business work better and achieve high goals.

The COO plays a key role in managing the day-to-day operations of the company, so the issues at the interviews should be aimed at understanding his professional skills, experience in operations management, strategic thinking, as well as an assessment of his ability to solve complex problems and manage a team.

Here are examples of questions that can be asked:

• Tell us about your experience in operations management. What was your role and what processes did you improve?

• What is your greatest achievement at your previous job?

• What were the main operational challenges you faced and how did you overcome them?

• How do you approach developing a strategy for managing operations in a company?

• Tell us about the last significant decision you made. How did you assess the risks and analyze the Possible outcomes?

• How do you build communication within the team and between different departments of the organization?

• Share an example of how you developed leadership skills in your subordinates.

• How do you approach conflict resolution as a team?

• How do you assess the efficiency of operational processes? What KPIs do you use?

• Tell us about your experience in optimizing processes or reducing costs in the company.

• How are you using innovation to improve operations?

• What technologies or management systems have you worked with and how did they help improve business processes?

• Tell us about a time when you had to manage significant changes in your organization. What challenges did you face and how did you overcome them?

• Tell us about the project or initiative that you are most proud of. Why is it so important to you?

These questions will help assess the candidate's qualifications, management approach, and ability to make a meaningful contribution to your company.