A chief operating officer oversees a company’s operations. That’s a broad description. Specific duties can vary from industry to industry and as trends and technology evolve.

So, what does the future of COO leadership look like? It will change as new tools and devices are introduced to the landscape. It is likely to expand as industries emphasize the value of operational efficiency.

Increased Digitization

Digitization plays a major role in operations. We see it in cloud computing, supply chain processes, augmented reality, and legacy app modernization. It improves efficiency and creates expansion opportunities.

In the future, digitization will become more integral to operations. New technology will be introduced, and COOs will be tasked with using this technology effectively. It will be more essential to each operational task and provide more insights in the form of data analytics and reports.

As technology becomes more essential, COOs must align closely with IT departments. Growing relationships will form between COOs and CIOs. The two will work together to guide the company to success.

More Focus on Sustainability

Sustainability is a hot-button issue. It improves customer satisfaction and helps companies save money. The COO is typically the leader most focused on sustainability ensuring environmental methods are carried out in every aspect of operations.

The environmental landscape is constantly changing with new technologies that promote sustainability and new issues that must be addressed. COOs must become intimately familiar with each update and devise solutions that work best for their organizations. Operations must adhere to the latest eco-friendly laws and trends to promote growth and avoid reputational damage.

A COO’s Expanding Role

COOs were once primarily responsible for overseeing a company’s daily operations. While this is still the case, they have now expanded their role to become more essential in decision-making processes. The increasing complexity of business operations means COOs must adopt a more hands-on approach.

As a result, COOs must take on a broader skill set. They must know how to utilize and analyze data and make strategic decisions. They must also communicate effectively to explain statistics and reasoning to various company stakeholders.

There is no saying whether a COO’s role will expand beyond its current state, but more technology will likely be introduced to support strategic decision-making. Leaders will have to stay on top of upcoming trends to ensure they guide their organizations in the right direction.

A New Focus on Globalization

The globalization trend figures heavily into operations. COOs must deal with time zones, cultural differences, and compliance issues. They must develop a deep understanding of international markets, relevant regulations, and possible risks.

As time moves on, COOs will forge stronger relationships with CFOs to better handle financial risks. They will partner with CEOs to ensure global strategies are aligned with operations. We may also see a shift to nearshoring and reshoring as the international trade climate evolves.

Increased Emphasis on Employee Engagement

Today’s leaders understand the importance of employee engagement. It makes employees feel like a more integral part of the organization boosting productivity and satisfaction.

COOs must create a culture that is conducive to engagement and productivity. They may consider training and advancement opportunities, flexible scheduling, and recognition incentives. Leaders must also ensure their staff has the tools to carry out operations effectively.

Playing a central role in company culture means more interactions with HR departments. The two must work together to ensure HR policies support productivity. The relationship will also promote workplace compliance company-wide.

Introduction of New Technologies

Technology and operations go hand in hand. Currently, AI, IoT, and digitization play major roles in operations. The future is always uncertain, but we can safely say more technology will be introduced to further boost productivity.

Increasing technology adoption means COO and CIO roles will intertwine. COOs must be up to date on the latest technology, and they must know how to use it. They must provide training to their staff to ensure they are up to date.

It is unclear how the CIO/COO relationship will develop, but lines must be drawn concerning their roles and how they support each other as technology evolves.

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