Power Position: The Role of the COO in Shaping Company Strategy

Like many C-suite positions, the Chief Operating Officer role is evolving. Typically the second-ranking executive in the company, the position was once focused purely on the tactical needs of operations. Today, however, COOs are tasked with everything from improving customer-centricity to managing digital transformation, spearheading ESG policies, shaping company culture and driving growth.

In fact, a recent survey from PwC identified the top six priorities for COOs in 2024, demonstrating just how vast and varied the position can be. Those priorities included:

  • Improve supply chain resiliency
  • Create value from transformation
  • Enhance workforce productivity
  • Chart a path to growth
  • Build trust in technology
  • Team up with tax leaders

This expanded focus for COOs means that strategic planning and execution is now a critical component of the role. Yet, for many COOs, it can be a struggle to allocate enough time for strategic initiatives. McKinsey found that only a third of a COO’s time is set aside for long-term strategic planning, with the remainder of time eaten up by day-to-day operational priorities and managing people.   

COOs, however, are in a unique position to help a company achieve its strategic initiatives by leveraging the structure and outcomes of day-to-day operations. A strong COO is not only effective at minimizing costs and maximizing efficiencies, but they also play a significant role in improving the product and service experience and ensuring both customer and employee satisfaction. In this way, the COO touches every key aspect of a company’s activity and can be a bellwether for the smartest path toward success. 

With these rather ambitious aspirations in mind, what skills are most valuable for the COO?

Strategic planning

While the CEO is tasked with leading business strategy, it is the COO who keeps the gears turning by balancing operational excellence alongside costs, people management and performance. It is up to the COO to turn vision into practical application.  

For this reason, the COO role is critical in strategic planning. They breathe life into lofty strategies and help define the purpose of transformation with concrete action. COOs also often have more time with the team, to help engage every layer of the organization and cull together the best approach toward strategic planning. 

Successfully executing the strategic plan is where the rubber meets the road for the COO. In working with COOs, we knew it was important that our strategic planning software allow for both quantitative and qualitative data to be easily visualized. As COOs need to evaluate everything from cost to resources to risk, StrategyBlocks made it possible to have a real-time, dynamic view across the entire organization and quickly identify challenges and where improvements can be made. To be effective at strategic planning, COOs need to remove as much ambiguity from the process as possible, which is why StrategyBlocks is such an effective tool in their arsenal.

Change management

The COO can be one of the most powerful change agents within the organization. Contrary to some expectations, it is not the COO who is responsible for managing day-to-day operations. They are the overseer. Rather than get bogged down by daily minutiae, a COO’s role is to ensure the right team is in place and then serve as an inspirational leader. This position as overseer is how a COO can best ensure the organization transforms from something good to something great. 

This requires an ongoing effort to evaluate current systems, processes and strategies to determine if they are serving the organization and allowing it to grow in the right direction. It also requires addressing resistance to change head-on and coaching both the executive team and employees through necessary changes. 

To be effective change agents, COOs must work to minimize disruptions, establish trust and navigate pushback. As one COO advised, “Do not stay in your comfort zone. You need to proactively manage the inertia of organizations. Disruptions can come from new players that are operationally superior. Engage important stakeholders. Assess the mindset of middle layers of management quickly, as you cannot execute without them. Identify people who have the expertise you need and learn from them.” (McKinsey)

Data-driven decisions

The modern COO must be well-versed in data analysis. Collecting the right kind of data, and understanding what it is showing you, is critical to measuring performance, predicting outcomes and recognizing to what degree strategic planning and execution is effective. Data is also the quickest way to educate and persuade the rest of the executive team toward transformation. 

Investing in the right tools for data visualization and analytics is imperative, as they can be the best resources for identifying strategic growth opportunities. Ensuring your data is accurate and secure should also be a high priority. Dashboards that clearly outline activities within the organization are vital for COOs, which is why we’ve worked at StrategyBlocks to create dashboards that are highly visual, comprehensive, informative and engaging. Data that is locked away, or can’t be easily translated into effective reporting, is useless. A COO’s role must prioritize effective data collection and utilization as part of a larger effort to meet strategic goals. 

These three skills represent only a fraction needed by COOs to effectively do their job. It’s a good place to start, however, as these skills define the future direction of the position. 

Much like the role of the Chief Strategy Officer, a COO’s requirements can vary depending on the organization’s needs and the structure of the executive team. What is clear, however, is that the role of COO has become critical in today’s demanding and ever-shifting business environment. To be successful, COOs must consider their primary role as a strategic partner to the CEO. In this way, they help to leverage their expertise and position in spearheading growth for the organization and ensuring it continues to deliver on its mission and purpose.