People

Difference between CEO and COO

Main Difference

The main difference between the two terms getting discussed here becomes apparent just by knowing what the word mean entirely. That gives an insight on how the roles complement each other and work on various levels. The term CEO stands for Chief Executive Officer and is the post of the highest ranked person in a company who is responsible for making all the managerial decisions. The term COO stands for Chief Operating Officer and is an individual who is a senior executive member of the company tasked with managing the day to day businesses within any institution.

Comparison Chart

Basis of Distinction CEO COO
Name Chief Executive Officer Chief Operating Officer
Rank Highest Second Highest
Nature A person who is responsible for making all the managerial decisions. A person who is responsible for implementing all the administrative decisions.
Responsibilities Giving a particular direction, Setting the culture, Creating values and examples of behavior. Assigning work, hiring right people, manage any problems, Keeping track of daily activities.
Working Eventually becomes a ceremonial post once all the plans and strategies are in place. Work starts after all the plans and strategies are in place.
Report Answerable to the owners. Answerable to the CEO.

CEO

The term CEO stands for Chief Executive Officer and is the post of the highest ranked person in a company who is responsible for making all the managerial decisions. Some of the primary jobs that a person on this post has to perform include the creation of strategies of how to run a business successfully. Giving a particular direction so that everyone stays on board and work towards the same point. Setting the culture within the environment, creating values and examples of behavior is another thing that a CEO has to initiate so that there are no qualms among people on how to conduct their daily activities. Building and training individuals so that they become part of the senior executive team that works towards the betterment of the company is another task. Last but not the least, they have to ensure that the money spent within the organization is to the right people and the right jobs. Although these are the tasks, the person on this post does not always have to do much since they have set everything in place long before and now just have to stay on the job to motivate people. All the others who are on this post have to work and achieve particular tasks, but CEO gets the fruit of all the hard work done as the company keeps on gaining revenue.

COO

The term COO stands for Chief Operating Officer and is a person who is a senior executive member of the organization tasked with managing the day to day businesses within any institution. This person is second in command within any business and has to report directly to the CEO. The main tasks of a COO include assigning work to the people working within the organization. Making sure the right people are hired and the most relevant tasks given out to the people working within the department. They also have to manage any problems that either divisions or people are facing and help in resolving it. Anything that happens within the scope happens to the eyes of the operating officer. They have a lot of other responsibilities, and it is safe to say that among the executive team the COO has the busiest routine. Keeping track of daily activities and then managing of other events at the same time is hectic. But actions such as creating of strategy, actions and policies within the company is their task, communicating with the workers and ensuring that they know everything about how to conduct their duties. Human resource management, although is a separate department the officer also has to keep track of everything going on. Ultimately, a person working at this seat is the one who takes over from the CEO and runs the businesses as usual.

Key Differences

  • The term CEO stands for Chief Executive Officer whereas the term COO stands for Chief Operating Officer.
  • CEO is the post of the highest ranked person in a company who is responsible for making all the managerial decisions. COO is the position of an individual who is a senior executive member of the group tasked with managing the day to day businesses within any institution.
  • Primary duties of a CEO are the creation of strategies of how to run a business. Giving a particular direction so that everyone stays on board. Setting the culture within the environment, creating values and examples of behavior.
  • Primary duties of a COO are assigning work to the people working within the organization. Making sure the right people are hired and the most relevant tasks given out. Manage any problems that either divisions or people are facing and keeping track of daily activities.
  • CEO eventually becomes a ceremonial post once all the plans and strategies are in place whereas a COO stays active after the implementation since their word starts at this phase.
  • CEO eventually retires, and the COO is the person who takes over from the CEO.
  • CEO is not answerable to anyone except the owners whereas the COO is directly accountable to the CEO.

Video Explanation