The organization’s Chief Executive Officer, or CEO, has a unique set of roles and responsibilities that can’t be given to other staff members. The CEO of the company figures out what resources are needed, looks for places to get money, comes up with plans for how to talk to lenders, makes proposals, and sends them in. He or she runs the whole business and does a good job of managing people.

On the other hand, the Chief Operating Officer, or COO, is the company’s second-highest-ranking officer after the CEO. The COO is in charge of everyday operations and reports to the CEO about how things are going.

Both COOs and CEOs are in charge of high-level tasks that have a big effect on whether a company succeeds or fails. Now, this article will help you figure out what makes a COO different from a CEO.

You will be Interested on : Company Registration in Dubai

Table of Contents

Comparison Chart

BASIS FOR COMPARISON	COO	CEO
Meaning	COO is the second person in the chain of command. This person is in charge of the organization’s internal operations to make sure everything runs smoothly.	CEO is at the top of the chain of command and has the authority and responsibility to run and run the business.
Executive	Senior Corporate Executive	Most Senior Corporate Executive
Responsible for	Daily operations and administration	Management of the Organization
Charged with	Maximization of profits and customer satisfaction	Maximization of the value of the enterprise
Reports to	Chief Executive Officer (CEO) or Managing Director (MD)	Board of Directors (BOD)
Work	To carry out the plans and strategies that the CEO has made.	To make plans and strategies for the growth of the company.
Leadership	Exceptional Leadership	Authentic Leadership
Expected to	Help the CEO put together a good structure for the organisation.	Give strong management oversight and responsibility for the whole organisation, as well as strong leadership.

Keep reading : Free Zone Company Formation

Definition of COO

The company’s COO, or Chief Operating Officer, is one of the top managers who is in charge of the day-to-day administrative and operational tasks of the company. His or her job is to put the business plan into action based on the business model that was given.

The chief operating officer works with the chief executive officer (CEO) and the chief financial officer (CFO) to create the company’s annual operating plan, which supports the company’s long-term operational strategy.

He or she also helps the CEO keep track of the company’s achievements and keep the company’s market position competitive. The COO has the power to keep a positive work environment, which helps get, keep, and motivate competent employees at all levels of the company’s hierarchy.

So, it is the COO of the company who:

Maintains and improves the quality, cost-effectiveness, and efficiency of how the company works.

The Chief Operating Officer (COO) has different jobs at different companies. Large companies often have more than one COO so that different business lines and units can be managed by different people. But there are some businesses that don’t have a single COO. He or she helps the business grow well and makes sure that operations run smoothly and the finances are stable.

You will be Interested on : Dubai Mainland Company Formation

Definition of CEO

The top executive in a company is called the Chief Executive Officer, or CEO for short. This person is chosen by the company’s board of directors. He or she is in charge of putting the strategies that have been officially approved and accepted by the board into action. He or she also makes sure that the company’s overall structure and processes meet the strategic and cultural needs of the organisation.

The CEO is the person in charge of the business. Depending on the nature, structure, type, and needs of the concern, the responsibilities change. He or she is in charge of making decisions for the company, coming up with and putting long-term plans and strategies into action, and managing operations and resources. He or she helps people in the company talk to each other.

He or she has to answer to the board of directors of the company or, in the case of a non-profit organisation like the state government, to the governor. It’s important to note:

The CEO’s job and role may change depending on how big the company is.
The CEO is responsible for the success or failure of the company.

The CEO is expected to act in an honest and sincere way and follow the organization’s values and code of conduct.

Keep reading : Company Formation in Dubai

Key Differences Between COO and CEO

Here are some clear ways to tell the difference between a COO and a CEO:

Simply put, the chief operating officer (COO) is a member of the company’s executive team who is in charge of daily operations and administrative tasks. On the other hand, the CEO is the person who leads the executive team and keeps an eye on how the business, its employees, and its resources work day to day.
The CEO is at the top of the chain of command, while the COO is second.
The COO is in charge of the day-to-day operations and management of the business. The CEO is in charge of the company’s management, which includes setting up and allocating resources, overseeing operations, making corporate decisions, etc.
The COO’s job is to make sure the company is running as efficiently as possible so that it can make the most money and keep customers happy. On the other hand, the CEO is in charge of making sure that the company’s value is as high as possible in terms of its stock price, market capitalization, revenue, profit, and so on.
Based on the way the company is set up, the CEO is in charge of the chief operating officer. On the other hand, the CEO is responsible to the company’s board for carrying out his or her role and responsibilities. The Board expects the CEO to keep the Board informed of all factors, events, and conditions that are likely to affect or have a big effect on the business organisation.
When it comes to work, the COO’s job is to put the plans and strategies that the CEO comes up with into action. On the other hand, the CEO makes plans and strategies for the growth of the company.
A CEO should use an approach to leadership called “authentic leadership,” which focuses on the leader’s legitimacy and commitment to the mission. On the other hand, a COO should be a great leader who can predict and handle risks and crises before they happen and make the right business decisions.
To run the business well, the company’s CEO needs to come up with a plan for management supervision and responsibility throughout the organisation. Along with that, he is also expected to be a strong leader both inside the company and outside of it (to stakeholders). On the contrary, the COO is supposed to help the CEO set up a good organisational structure for the company.

You will be Interested on : Company Formation in Dubai Free zone

Roles and Responsibilities of COO

The COO’s main job is to make sure that the company runs smoothly every day, including all of its different units and divisions, in line with the strategic plan and budget. A COO’s jobs and responsibilities are:

Putting plans and strategies made by top management into action.
Taking care of problems related to financial growth and development, sales and marketing, research and development, production, buying, staffing, and so on.
Making sure people can talk to each other, solving problems, and working on the project.
Creating a culture that encourages ethical behaviour, personal integrity, and putting the customer first.
Find ways to improve business strategies and make operations more productive and efficient.
Making rules that spread the company’s culture and goals.
Find out where the business can be improved and start change management across the board.

Keep reading : How to Setup a Business & Register a Company in Dubai

Roles and Responsibilities of CEO

In general, the organization’s governance charter and the official job description in the contract of employment spell out the CEO’s scope, roles, responsibilities, and authority. The following are some of the roles and responsibilities of a CEO:

Creating the strategic direction, planning it, putting it into action, and integrating it.
Making sure that the company’s leaders take into account both the inside and outside of the company.
The work of the executives under them is led, directed, guided, supervised, and evaluated.
When needed, getting advice and direction from the company’s board.
Creating business plans, strategies, and budgets for the board of directors to look over and putting them into action.
Making sure that the business and operations of the company match the standards set by the board.
Telling the board about important changes in the company’s operations, business, and affairs.
Seeing and dealing with the risks that the company faces.

You will be Interested on : Difference Between Product-Based and Service-Based Companies

Conclusion

So, the CEO must have excellent business judgement. Only then will he or she be able to lead the team in correctly identifying the problems, finding the problems in different courses of action, and choosing the best one. On the other hand, a COO should have good organisational, communication, and leadership skills so that they can lead and guide the whole team.

Tags : How to Setup cloud kitchen in UAE, How to setup factory or manufacturing Unit in Dubai ?, How to Setup & Start HR Consultancy Business in Dubai, How to start a business in Oman?, How to Start a Catering & Food Delivery Service Business in Dubai, UAE?, How to Start a Construction Business in Dubai, How to Start a Restaurant Business in Dubai?, How to Start a Restaurant or Cafeteria Business in Dubai and the UAE, How to start a SPA Business in Dubai – UAE, How to start an eCommerce business in Dubai?, How to Start Import Export Business In Dubai, How to Start Lifestyle Consultancy Business in Dubai, Import Export License in Dubai, Incorporating Business in DMCC Free Zone Dubai, Investment Company Setup in Dubai – UAE, Investment Company Setup in Mauritius, Khalifa Industrial Zone Free Zone – Abu Dhabi, Laundry Business Setup in Dubai, Is a local partner mandatory to start a business in the UAE?, Logistics Business Setup Service in UAE Oman Mauritius & UK