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In the C-suite, the most prominent positions are the CEO, COO, and CFO – the chief executive officer, the chief operations officer, and the chief financial officer. These 3 positions, along with others, form the top-most tier of leadership at any organization. They share certain aspects of their roles but the functional roles are very different.

The CEO

The CEO is the highest position at an organization and oversees the operations of the entire company. Their focus spreads across departments and includes everything from sales to administration. The CEO makes all the major decisions for the company and also functions as the company representative for the media and public. At some companies, depending on the size and structure, the CEO also holds the title of president, or founder, and might also be the chairperson of the board of directors.

The COO

The COO is one level under the CEO and reports to them. The COO’s position is not present at all companies. They are more common to companies with a high level of operational activities like manufacturing companies. On a broad level the COO is in charge of the day-to-day operations of the company. But, the specifics of the role of a COO is highly dependent on the CEO and the requirements of the company.

The CFO

The CFO is the highest position for financial matters in the company. The CFO is responsible for financial management, cutting costs, and growing revenue. Their primary role involves financial planning, monitoring the company cash flow, maintaining investor and partner relations, and more.

The difference between a CEO, a COO, and a CFO

The differences in the roles and responsibilities of the CEO, the COO, and the CFO are based on their respective functions relative to their departments. Here are 6 key differences between the CEO, the COO, and the CFO;

Primary responsibilities

The CEO is responsible for the overall performance of the company as well as the company’s image in the media or the public. This is dependent on the size and nature of the company and its relationship with the public. It is the CEO’s responsibility to take all big decisions for the entire company and set goals along with the board of directors.

The COO’s responsibilities vary greatly depending on the CEO and the needs of the organization. The COO’s responsibilities are in relation to the CEO and what they need. There is no definite description of what the COO’s responsibilities are so there are different kinds of COOs for different requirements by the CEO and their vision.

The CFO is responsible only for the financial activities of the company. They are in charge of all the different financial departments in an organization whether it may be accounting, budgets, financial reports, or investments.

Hierarchy

The CEO is hired or appointed by the board of directors as the top-most position in the corporate hierarchy at any company. They report only to the board and no one else.

The COO is second in command to the CEO and works very closely with them. They are also hired by the CEO.

The CFO is hired by the CEO and works one-level under them along with the COO and other C-suite positions.

Liaising

The CEO is responsible for the public image of the company so they represent the company in the media. In some instances the CEO also liaises with the investors, shareholders, and official bodies.

The COO will usually carry out any communication required by the CEO. They are usually in charge of the internal affairs of the company.

The CFO’s liaising is only finance related. They are incharge of developing and maintaining relationships with investors, banks, and other financial institutions. Depending on the needs of the company, some CFOs also liaise with the board.

Functional role

The CEO’s job is to develop goals and strategies for the growth of the company. These are usually with the knowledge of the board. These goals then get delegated to the appropriate manager in-charge. The CEO ensures that the employees are working towards the vision of the company. The CEO is the position that proves as an example for the rest of the company to follow.

The COO’s function in the company is reliant on the CEO and company’s needs. But typically the COO is responsible for daily operations at a company. Since the COO’s duties depend on the organization, there is no definite outline of their functional role but it may include culture, marketing, sales, strategy, research, and resources.

The CFO is solely concerned with the financial growth and progress of the company. They keep track of the financial strengths and weaknesses of the company and propose plans to combat the weaknesses and play up the growth. They also have to be aware of unforeseen challenges such as an unstable economy. They are expected to provide counsel in financial matters concerning investments, projects, and strategies, to the CEO, COO, and board of directors.