What Does a Director of Operations Do?

A director of operations manages how a company executes daily operations in terms of business growth, processes, procedures and employee productivity. This role requires close coordination with upper management, internal departments, clients and customers. Individuals coveting this role will also need excellent communication, leadership and analytical skills.

Also known as a director of business operations, the director of operations is a high-ranking position that oversees the effectiveness and efficiency of a company’s operating procedures and day-to-day activities. Directors of operations coordinate among various departments or locations, helping to identify areas of improvement from an administrative or managerial standpoint. 

Some of their general duties may include:

• Working with Human resources (HR) regarding a company’s hiring procedures.
• Reviewing documents to gain insights about employee productivity or communication.
• Setting financial budgets or goals.
• Communicating with upper management personnel to improve operations and policies.
• Developing operational strategies to help meet long-term company objectives.

Below, we offer more in-depth information on the ins and outs of this role, from a director of operations salary to job description to career path.

What Is a Director of Operations?

In short, directors of operations are managers who usually work for corporations in a specific industry and monitor how they execute daily operations. Coordinating closely with upper management or department heads, the director of operations role focuses on promoting business growth, maximizing procedures, increasing sales and improving customer relationships. 

Director of Operations Job Description 

No matter the organization, a director of operations job description generally describes a candidate who would oversee internal and/or field operations to make sure all teams align with company policies and procedures. A director of operations is responsible for the safety, efficiency and effectiveness of processes — driving decisions that continuously optimize these operations. 

In addition, the typical director of business operations reports to a Managing Director, Chief Operating Officer (COO) or even directly to the Chief Executive Officer (CEO). 

Education Level

Almost all directors of operations at minimum hold a bachelor’s degree in business administration or a related field, such as finance or management. However, depending on the specific role, a master’s degree might be required. 

When seeking employment as a director of operations, the following qualifications are also useful and attractive:

• Professional certifications in areas of data analysis, operations management, personnel management and/or supply chain management 
• Leadership training in areas of negotiation, business analysis, change management and/or strategic leadership

Responsibilities of a Director of Operations

A director of operations’ responsibilities may include any combination of the following duties for an organization:

• Develop and execute new growth directives
• Manage resource allocation 
• Strategize program growth to minimize costs and maximize output 
• Establish procedures to improve day-to-day workflow and operations
• Ensure safe and productive work environments that adhere to standards, policies, laws and regulations
• Develop and monitor financial plans and sales goals
• Review budgets and revenue margins
• Oversee operational compliance with department heads
• Define, implement and revise operational policies and guidelines
• Establish metrics and standards for measuring the company’s overall efficiency and effectiveness
• Communicate new policies and directives to managers and/or staff 
• Explain major changes while helping maintain morale
• Identify ways to improve customer service and satisfaction 
• Consider interactions and relationships between department heads and external partners or vendors to inform business decisions
• Track and analyze data and key operations metrics to achieve ideal productivity 
• In collaboration with HR, organize and oversee the hiring, training, tasks and schedules of staff departmental managers
• Develop and conduct staff performance evaluations 

Skills Needed

Soft Skills: 

• Written and verbal communication skills
• Leadership, managerial and interpersonal skills 
• Negotiation skills
• Critical thinking, analytical, decision-making and problem-solving skills
• Keen attention to detail and organizational skills

Hard Skills:

• Understanding of business and finance practices and policies
• Knowledge of industry-specific guidelines and regulations
• Understanding of business performance evaluation metrics
• Experience with data analysis and customer relationship management (CRM) software
• Proficiency in Microsoft Office Suite or related software
• Well-rounded knowledge of multiple operational principles surrounding finance, production, customer service, employee management, etc. 
• Proven ability to streamline structures in a way that increases efficiency

Typical Day to Day as a Director of Operations

Directors of operations serve as a liaison between an organization’s management and other departments to ensure the well-being of both. However, aside from this being a people-facing role, a truly effective operations director will also hone in on data and policy analysis to assemble reports and proposals. 

A typical day for a director of operations might begin with writing memos, reports or email responses from company managers or executives. Often, they will join phone calls and meetings throughout the day regarding operational policies or initiatives. 

On a more consistent basis, directors of business operations review surveys, sales data, performance reviews or other documents to suggest areas for improvement. They may also travel regularly to visit and check in with different company branches. 

What a Successful Director of Operations Looks Like 

Overall, a good director of operations will employ their wealth of industry experience plus organizational and communication skills to guide a company’s daily operations. To truly excel, it is ideal for these upper-management officials to have as much autonomy and supervision as possible over the organization’s processes. 

Successful directors of operations invest time in connecting with each department or branch in the corporation to help ensure that managers are grasping and following operational procedures. An innovative spirit is a major bonus, too, as this allows a director of operations to not only identify but also effectively solve problems.

Director of Operations Salary

Based on national wage estimates for directors of operations, here is a quick look at how much this job pays:

• Median hourly wage – $47.10
• Median annual salary – $97,970

That said, the salary range can be vast depending on the company, the employee’s experience level and other factors. 

Career Path to Become a Director of Operations

Although a director of operations must have formal education through a bachelor’s or master’s program, there is also ample opportunity for training through roles along one’s career journey. A qualified candidate would usually have a well-rounded background under their belt — with at least 10 years of related experience in an operations role and/or at least five years of experience in a management or leadership role. 

For instance, before advancing to the position of director of operations, a candidate might start in lower-level management, then work their way up in a specific company. 

How to Become a Director of Operations

Aside from the requirements above, keep in mind that this is by no means an entry-level role. Thus, expect to spend at minimum five years to a decade climbing the corporate ladder to a director of operations job. 

For example, gaining valuable experience at a large organization could land you a higher-ranking job at a small organization, which might demand fewer prerequisites. In that same vein, you might work your way up faster within a smaller company, opening doors to better opportunities at a larger company down the line.

In an interview, knowing how to discuss your skills in the most relevant and specific way is crucial to landing a director of operations role. Rhona Barnett-Pierce, a Director of Recruiting Operations and LinkedIn Top Voice, suggests the best way to prepare is to have in mind story examples showing how your experience translates directly to the job description. She writes, “Remember, [s]omeone saw something in your resume that made them want to talk to you more. An interview is not the time to be vague and hope that your resume does the heavy lifting.”

Additionally, an ideal director of operations candidate would have some form of proven experience in the following areas:

• Conducting internal and external negotiations 
• Creating financial plans and budgets for large organizations 
• Creating practical and innovative solutions for maximizing productivity and profitability

Final Thoughts 

Ultimately, there is no singular or “right” path to becoming a director of operations. If you have the ambition, the skills and a supportive company, it is possible to gain rich experience and work your way up internally. 

With the right skills and mindset, directors of operations have the chance to make a big impact and reach great success for a company. Not only is this rewarding in terms of salary and professional achievements, but it also can be extremely fulfilling on a personal level. 

Top Takeaways

What Does a Director of Operations Do?

• A director of operations monitors and manages how a company executes its daily operations in a variety of areas, such as business growth, employee productivity, processes and procedures.
• This role requires close coordination with upper management, department heads, clients, customers, external vendors and more. 
• Characteristics important to success include strong confidence, communication, flexibility, leadership ability, decisiveness, business judgment, people skills and analytical skills.
• Directors of operations need to earn a bachelor’s or master’s degree, plus a minimum of 10 years of related experience and/or five years in a management or leadership role. 
• No matter your background, with the right combination of ambition, skills and a supportive company, it is possible to gain rich experience and work your way up to this role. 

(Reporting by NPD)