Operations directors · the role
What does an operations director do?
The short answer · updated
An operations director runs how a business delivers what it sells. They turn the strategy into operating plans and budgets, lead production or service delivery, the supply chain, purchasing and logistics, improve processes and systems, and own health and safety and operational risk. They report operational performance to the chief executive or managing director and the board.
What is an operations director?
An operations director is the senior leader responsible for a company’s operations: the people, processes, sites, suppliers and systems that make and deliver its product or service. In many small and mid-sized companies the operations director is the most senior operations role; in larger ones it sits under a chief operating officer.
The Institute of Directors describes the operations director as overseeing all operational aspects of company strategy, helping to set strategic goals and being responsible for the flow of operations information to the chief executive and the board. Its summary of the main purpose: to direct all operational activities so that business objectives are met efficiently and effectively.
What an operations director is responsible for
The IoD notes that responsibilities vary with the size, sector and maturity of the company. The common core is below.
- Operating strategy. Contributing to company strategy on production, purchasing, distribution and the supply chain, and turning it into operating plans.
- Delivery. Running production or service delivery so that customers get the right product, at the right standard, on time and within cost.
- Supply chain and purchasing. Buying the goods and services the business needs, and directing warehousing, distribution and logistics.
- Budgets. Building and controlling the operational budgets, and the cost and margin behind them.
- Process and systems. Setting policies and procedures, improving how work gets done and deciding where to automate.
- People. Leading the operations managers and their teams, and making sure they are trained to the required standard.
- Health and safety. Safe and healthy working conditions across every site.
- Performance. Measuring the operation with data, reporting it to the leadership team and the board, and acting on what it shows.
Who an operations director reports to
Most operations directors report to the managing director or chief executive. Where the company has a COO, the operations director usually reports to them and runs a division, a group of sites or the supply chain.
Operations managers, site or plant managers, and the heads of logistics, purchasing, quality or customer service usually report in. The finance director is the closest peer: costs, capital spending and margins need both.
The title does not make the holder a company director. An operations director appointed to the board owes the general duties of a director, which Companies House guidance sets out; one who is not attends the board for their items. HSE’s Leading health and safety at work is written for all directors and their equivalents, so it applies to the role either way.
Operations director vs COO vs head of operations
A COO runs the whole operating model at executive level, usually as the chief executive’s second in command. The IoD describes the COO’s purpose as directing and controlling all organisational operations in line with the strategy and business plans agreed by the chief executive and board. See what does a COO do.
An operations director runs the operating functions: delivery, the supply chain, sites and suppliers. In a company with a COO, the operations director reports to them; in one without, the operations director does much of the COO’s operational work under a different title.
A head of operations usually runs the operational teams day to day, and may report to the operations director. In a start-up the head of operations is often the senior operator. See what does a head of operations do.
Titles vary, so compare the responsibilities, the budget and the reporting line, not the label. The operations director job description and the COO job description set the two briefs side by side.
Skills, qualifications and the rules they work within
The IoD lists a degree or equivalent and relevant professional qualifications, extensive operations management and industry experience, analytical skill with performance data, and strong negotiating, organisational and decision-making skills. No qualification is required by law.
Two professional routes are useful signals. CMI awards Chartered Manager status, backed by a Royal Charter. For operations directors who own purchasing and supply, CIPS runs qualifications from Level 4 to Level 6, leading to chartered membership.
Supply chains carry legal duties. Under section 54 of the Modern Slavery Act 2015, certain organisations must publish a modern slavery statement each year on the steps they take to keep modern slavery out of their business and supply chains; the government’s practical guide explains what it should cover. The operations director usually owns the supplier checks behind it.
Fractional, interim and permanent operations directors
A permanent operations director suits a business whose operations need a senior owner every day.
An interim operations director works full-time for a fixed period: a turnaround, a new site, an integration after an acquisition, or cover while the permanent search runs. See interim operations director jobs.
A fractional or part-time operations director works a set number of days a week: documenting processes, setting up a reporting rhythm, hiring an operations manager, then keeping it running. It suits a growing company that needs senior operations but not five days of it. See fractional operations director jobs.
An interim or fractional operations director working through their own company may fall within the off-payroll working rules (IR35). Status turns on how the engagement runs in practice, and a medium or large client makes the determination. Our IR35 guide sets out the tests.
What an operations director earns
Pay depends on the size and complexity of the operation, the sector, and whether the role sits on the board. Permanent operations directors are usually paid a salary with a bonus tied to cost, service or output; interim and fractional ones a day rate.
Our operations director salary page sets out advertised salaries, published base ranges and interim day rates, each figure with its source. For open roles, see operations director jobs.
How to hire an operations director
Write the brief around what the role will own: sites, functions, headcount, suppliers and budget, and the operational result the business needs next. If the remit is the whole operating model at executive level, it is a COO brief: see how to hire a COO.
Operations titles vary widely, so test the work, not the title. The CIPD’s guidance on selection methods favours clear, structured processes and skill-based assessment tasks. Give candidates a real operating problem from your business and take references from people who worked for them.
We recruit fractional, interim, part-time, temporary and permanent executives, and non-executive directors. To hire an operations director, see fractional operations director jobs for the part-week route; every brief gets a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out, after our five-stage vetting.
Questions people ask
What is the difference between an operations director and a COO?
Scope and seniority. A COO runs the whole operating model at executive level and usually reports to the chief executive; an operations director runs the operating functions and may report to the COO. In a company without a COO, the operations director often does that work. See what does a COO do.
Is an operations director more senior than a head of operations?
Usually. The operations director typically holds the budget and faces the board; a head of operations runs the teams day to day and may report to the operations director. See what does a head of operations do.
Is an operations director a board-level role?
Sometimes. Many operations directors sit on the leadership team without a board seat. One appointed to the board carries a director’s legal duties, set out by Companies House.
What qualifications does an operations director need?
None is required by law. The IoD points to a degree or equivalent, relevant professional qualifications and extensive operations experience. CMI Chartered Manager status or CIPS membership is a useful signal.
How much does it cost to hire an operations director?
A permanent operations director is paid a salary, usually with a bonus; an interim or fractional one a day rate. Our operations director salary page sets out pay with sources, and we set out pay or day rate for every candidate on the shortlist.
How do I hire an operations director?
Scope what the role will own, choose permanent, interim, part-time or fractional, and test every candidate on a real operating problem. See operations director jobs for open roles; we send a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
