What’s the difference between CEOs and COOs?

Some people might assume that once you’ve reached the C-suite, executive leadership roles are all pretty similar. But Bassam Salem, CEO of Atlas RTX and experienced COO, knows firsthand that the differences are more significant than they may seem.

“I think as an executive team, we assume we're just one step from the CEO and we're supporting her or him and we could step in if we had to,” Salem said. “It's not true. Being at the top of an organization is different.”

Keep reading to learn more about the distinction between CEO and COO, as well as skills COOs need if they plan to ascend to the role of CEO.

CEO: The Role and Its Responsibilities

The CEO is the head of the company. This person is generally seen as the final decision maker on all major decisions impacting the company. (Depending on the organization’s leadership structure, CEOs may report to a board of directors.) CEOs are publicly regarded as the driving force behind the company’s successes or failures.

That’s in part because CEOs set the company vision that directs how team members operate, strategize, and collaborate en route to fulfilling that vision. The CEO relies on his or her executive leadership team to carry out the vision and develop teams that can deliver on company goals. For this to go well, the CEO must be skilled in long-term planning.

This skill is also useful as CEOs must manage external partnerships and relationships that make sustainable business operations possible. CEOs work with investors and partners to ensure the business is set up to successfully operate in the short- and long-term.

COO: The Role and Its Responsibilities

The chief operating officer (COO) is a member of the C-suite who reports to the CEO. The COO is typically considered second-in-command behind the CEO, and these two roles often work alongside each other.

The CEO determines the company vision, and the COO is responsible for executing the vision by implementing policies and strategies designed to help the company reach its goals — or, in Salem’s words, this person “puts systems in place, hires the right people, and creates the processes.” While the CEO manages most of the company’s external relationships, the COO manages relationships with the various departments and teams within the organization to ensure they’re carrying out operations in accordance with the company’s vision.

The COO typically has the most comprehensive insight into how the organization is performing internally, making them an invaluable part of the leadership team. Their in-depth understanding of operations helps the CEO make informed decisions about the best way forward for the business.

Going From Second In Command to Person In Charge

Although CEOs and COOs don’t share the exact same list of responsibilities, the roles overlap in terms of the general leadership skills they require. Problem-solving, financial management, and operational skills are necessary, but effective communication and social skills have become increasingly important for C-suite executives. COOs use these skills every day, but once they transition to CEO, the skills they’ve developed must be applied in a wider variety of situations, with different audiences and circumstances at hand.

With this in mind, a COO-turned-CEO should anticipate a six- to twelve-month adjustment period to gain traction and develop a better sense of how to manage the complexity of running a company. By regularly assessing how each decision serves the company’s purpose and preserves the vision, COOs can step into an advanced leadership role with greater confidence.