The position of the chief operating officer in leading corporations isn’t beingeliminated, as once thought, it is being transformed, a new report by The Conference Board finds.
The Changing Role ofthe COO finds that the need for, and the definition of, a COO is determinedby the relationship between the role and that of the CEO, including theirrespective personalities and the needs of the particularbusiness. A risk assessment of the CEO “goingit alone” and internal talent management considerations are also used to determine the role of the COO.Some have said that the COO position is evolving from the number two spot in acompany to a leadership “on demand” role that changes focus with changing businessstrategy.
What’s more, the report finds that companies, in order togrow more quickly in an increasingly competitive business world, are becomingflatter, with the CEO now going directly to the heads of lines of the businessfor answers.
“The scope and intensity of leadership demands today callfor a team approach at the top,” said Fr. Robert J. Kramer, principalresearcher at The Conference Board, and author of the report, in astatement. “Some companies are decidingthat the composition of that corporate leadership team need not include a COO.Others are changing the duties for which a COO is responsible.”
The report is based on in-depth interviews with executivesfrom companies that represent diverse industries and a literature review. Those executives surveyed include heads ofhuman resources, regional heads, COOs, CEOs, heads of business units, and headsof company research.