What is an Executive Operations Committee (EOC)
An Executive Operating Committee is a group of senior executives who oversee the day-to-day operations of a company. This committee reports directly to the board of directors, and it may include both internal and external members. It is responsible for overseeing strategic planning and implementation, as well as managing financial risk. Executive Operating Committees are often made up of corporate officers, but they may also include other executives such as vice presidents and division heads.
What is the EOC’s most important task?
The most important task of the Executive Operating Committee is to act as a liaison between the President and the rest of the company. The EOC is responsible for setting a strategic vision for the company, which they then communicate to employees through meetings and memos. They also advise the President on major decisions that need to be made, such as hiring new employees or canceling an upcoming product launch.
How are members of the EOC selected?
The Executive Operating Committee is selected by the Board of Directors. The Board of Directors consists of representatives from each business unit and department, along with the CEO. Members of the Executive Operating Committee are selected based on their ability to be effective leaders and managers, as well as their understanding of the company's goals and values.
Aspects of a successful EOC
Successful Executive Operating Committees improve decision-making by sourcing insight from the front line and being more transparent. Through transparency about its decisions and processes, the EOC shows other executives and employees how those decisions are made and why. This will help the rest of the company feel empowered to make decisions that benefit everyone, instead of feeling like they're being dictated by a group of people who are keeping them in the dark.
Successful Executive Operating Committees also have a strong awareness of internal and external stakeholders. They have a grip on what is valuable, where the business needs to go, and how to get there together. By unifying the interests of external and internal stakeholders, the EOC creates a pathway of value from one party to the next.