What is a Vice President of Operations?

The Vice President (VP) of Operations is a senior-level executive responsible for overseeing the operations department of an organization. They use their strategy, decision-making and leadership skills to make sure that the business is running smoothly, sustainably and profitably. This role has a significant impact on the strategic vision and overall effectiveness of an organization and as such, the VP of Operations must have oversight of every department.

VP of Operations vs. Chief Operating Officer

The VP of Operations is often confused with the Chief Operating Officer (COO) because both share the main responsibility of overseeing the business’s operational functions, which sometimes make the roles similar or even interchangeable. Nevertheless, there are key differences between the two roles particularly if a company has both positions on their team.

Read more: What is a Chief Operating Officer (COO)?

The main difference between the VP of Operations and the COO is that the latter is a C-level executive. This means that they sit right below the CEO, or Chief Executive Officer, and act as their right-hand person in helping the company achieve its mission. They create measures and company wide objectives for improving business processes and success. On the other hand, a VP of Operations reports into the COO and works more closely with the Operations team in overseeing the business’s daily functions. Here are what some of those responsibilities might look like:

Responsibilities of a VP of Operations

• Supervising the Operations team.
• Analyzing data and formulating strategies for the company’s operational future.
• Directing and coordinating all operations.
• Ensuring that the company’s operational processes are as efficient and cost-effective as possible.
• Working with Human Resources to recruit, vet and onboard new employees for the Operations team.
• Evaluating the performance of existing Operations employees and taking disciplinary action when necessary.
• Maintaining a working knowledge of all phases of the organization’s operations.
• Providing regular reports for the senior leadership team.

Who works for the VP of Operations?

As we know, the VP of Operations heads up the operational team. But who is that team comprised of and what are they responsible for when “operations” can refer to so many areas of a business?

The Operations team of a corporation is responsible for making sure that the business’s goals and priorities are being met efficiently and effectively. While not all companies have a defined operations team, it can be very difficult to scale and achieve objectives without operations providing the blueprint. Common job titles on the operations team include:

• Business Operations Manager
• Business Analyst
• Strategy and Operations Lead
• Head of Operations

The day-to-day responsibilities of an Operations team differs depending on the organization’s product. For example, the Operations team at Amazon would work more closely with overseeing manufacturing, delivery and warehouses while operations at a technology company like Twitter might be more involved with strategic planning and driving traffic. Nevertheless, these business professionals will always help to monitor processes, forecast potential risks, liaise across departments and overall manage the business internally.

What skills does a VP of Operations need?

VPs of Operations carry a lot of responsibility within a company and need specific skills and qualities to excel in their jobs.

Communication

A VP of Operations will need to collaborate with their peers, as well as other employees above and below them in the company hierarchy. This requires strong interpersonal skills, including verbal and written communication.

Leadership

As high-level managers within a company, VPs of Operations will need to demonstrate the ability to lead others.

Analysis and strategy

A major aspect of the VP of Operations’ responsibilities is analyzing data and using it to develop operational strategies that promote greater efficiency and growth. This requires an understanding of the relevant metrics, impeccable attention to detail and a knack for strategy.

Business

A VP of Operations will need to have extensive knowledge of business principles in order to create processes, procedures and strategies that align with the company’s goals. This will include a thorough understanding of the industry they work in.

Tech

VPs of Operations don’t need to be tech whizzes, but they should be proficient with at least some software. Their responsibilities will likely include using Microsoft Office Suite, product management software or similar tools.

Recruitment and employee evaluation

Often, the VP of Operations will work with the Human Resources department to recruit new team members for the Operations team and evaluate existing employees. This requires an aptitude for talent scouting and personnel management.

Determination

The life of a VP of Operations frequently involves stress, long hours and high pressure. It takes a certain type of person to be able to carry out their duties under these conditions. But if you’re up for the task, you could make a significant impact on your company’s trajectory—all while earning a generous salary.

Salary of a VP of Operations

According to Salary.com, the salary for a VP of Operations in the U.S. typically falls between $150,197 and $190,956 per year. Indeed also depicts the average salary in the lower $100,000s but then showcases a list of top-rated companies for a VP of Operations in which salaries range from $200k to upwards of $400k. So, why the discrepancy?

The salary for a VP of operations can vary greatly depending on the company, location, tenure of the professional and scope of the role. The VP of Operations working at a large public company would usually make a significantly larger salary than one at an early stage startup due to lack of funding — startups tend to offer less cash compensation but more equity than public companies. Similarly, a VP working in Arizona would make far less than a VP in New York City because the cost of living in Arizona is far cheaper.

What is the career path of a VP of Operations?

If you think you’d like to pursue becoming a VP of Operations, the first step is to get the right education. That could be as simple as a bachelor’s degree in business administration or a related field. However, by getting an MBA, you will greatly increase your chances of finding a job at a promising company.

It doesn’t end with your education, however. VP of Operations isn’t a straight-out-of-college kind of job. You should anticipate spending at least 10 years working in your industry before this position becomes available. You may even need to spend 5–10 years in an upper management role before reaching the coveted VP of Operations title. In some cases, particularly at smaller organizations where the growth trajectory is faster, you may only need a few years of dedicated leadership experience to be considered.

One of the best ways to plan your career journey is by using a public organizational chart. This will help you see where you are in your organization and how you could progress toward your long-term professional goals.

Click below to add yourself to your company’s org chart.