These CSOs carried out activities similar to traditional management consultants. Nearly one-third of the CSOs we polled reported “very high confidence” in their knowledge of and comfort working in these functional areas; nearly all said they are at least “comfortable” with their level of knowledge of these topics. As he put it, “a fundamental conflict between what is easy to execute and what is right to execute often leads the chief operating officer away from the tougher decision.” (See William W. Wommack’s “The Board’s Most Important Function,” HBR September–October 1979.) Big Bang Disruption: Strategy in the Age of Devastating Innovation. Chief Marketing officer(CMO) 5. Yet there are times when an outsider is called for, particularly when a fresh strategic perspective is required. financials, investor relationships, corporate image, devising and impleme… Because he was coming from outside the organization, Kimberly-Clark’s Black told CEO Thomas Falk he wanted to take 60 days to get to know the company better before he signed off on strategic objectives that had been developed before he arrived. WellPoint’s CSO, Marjorie Dorr, was plucked from her position as president and CEO of the company’s northeast region, where she had increased membership in the health care company’s plans from 800,000 to 2.6 million. Office of the CFO Organizational Chart (PDF) Address. Post a Chief Strategy Officer job to 100 job boards with one submission. Countrywide’s Matricciani told us that thorough due diligence on new products and potential partnerships helps her to be persuasive when presenting opportunities to the rest of the company (or when explaining why it should stick to its knitting). Johnson had broadened Campbell’s competitive positioning in the market—from “soup against soup” to “soup as a meal”—thereby greatly expanding the range of the company’s offerings. “Someone at the center has to bring focus and discipline to the decision process,” says Kimberly-Clark’s CFO, Mark Buthman, or strategic discussions and initiatives will stall and business opportunities may be lost. How to Make a Chief Strategy Officer Fit into Your Organization By Don Tennant , Posted May 15, 2014 Patrick Stroh explains how the job of the CSO may depend on the needs of the CEO and the product structure of the company. Within months of taking on the role, the CGO became the CSO and analyzed the underlying causes of the company’s stalled growth, identified attractive new markets, and developed aggressive acquisition strategies. Special Offer. The chairman leads and influences the board of the directors and chief officers to manage the financial, human, technical and environmental working of a corporation. In circumstances such as these, a CEO needs an executive near at hand to share the load and maintain—or regain—control of a process that constantly threatens to become chaotic. Account. First, they must clarify the company’s strategy for themselves and for every business unit and function, ensuring that all employees understand the details of the strategic plan and how their work connects to corporate goals. “Half the time I spend with the CEO, [we’re talking about] people and cultural issues,” one strategy chief told us. Eighty-four percent of the top strategy executives who responded to our survey were internal hires; most of the rest came from competing companies in their industries. Organizational Chart; Organizational Chart. Either way, CEOs are recognizing the ever-changing nature of strategy development and execution, the ever-compressed time frames they have in which to achieve results—and the ever-growing value of having a trusted, in-house strategy executive at the ready. Other CSOs were enactors, far more likely to execute the strategy process by themselves or with their team. A Chief Strategy Officer (CSO) is a C-level executive who develops and executes strategies to accomplish financial growth in a company. CSOs must therefore resolve the strategy—that is, clarify it for themselves and for every business unit and function, ensuring that all employees understand the details of the strategic plan and how their work connects to corporate goals. Fuller recently announced it was hiring its first-ever CSO specifically “to emphasize and align the key functions of strategy planning, business development, process improvement, and information technology.” And when Marjorie Dorr was named WellPoint’s CSO, the company’s CEO said in a press release that Dorr would be “working with and across all business units to [establish] specific plans, deliverables, and measurable objectives…in order to drive progress and achieve desired results.”, In the long term, the role of top strategy executive can become an effective succession-planning tool. Should we be investing in developing a new product or improving an existing product? Some companies, including AIG, Kimberly-Clark, Motorola, and Yahoo!, have discovered a way to fill the execution void: hire a chief strategy officer. This is where a skilled CSO can be quite beneficial! Finally, a CSO must drive decision making that sustains organizational change. To help companies evaluate candidates, we’ve developed a checklist of some of the personal and behavioral traits necessary for the job, listed here in order of relative importance. Half the job involves learning why decisions aren’t being made in accordance with strategy and quickly determining whether to stay the course. One C-suite executive we spoke with was so glad to have a CSO come on board at his firm that he voluntarily gave up his office near the CEO to the strategy chief—but not all executives will be as receptive to the change. While this list is by no means exhaustive (although it is exhausting), it helps explain why more and more CEOs are seeking help with strategy execution at the highest levels. But CSOs particularly keep their eyes trained on horizon two and work to present a seamless picture of all the horizons. Get weekly updates on how global companies are managing in a changing world. CSOs also ensure that the capabilities they help to develop are implemented by managers and integrated throughout the organization. A chief data officer (CDO) is a corporate officer responsible for enterprise-wide governance and utilization of information as an asset, via data processing, analysis, data mining, information trading and other means.CDOs usually report to the chief executive officer (CEO), although depending on the area of expertise this can vary. Download the Office of the Chief Financial officer and Senior Vice-President organisation chart.. Chief Financial Officer and Senior Vice-President. Indeed, many of the CSOs we interviewed said that both candor and tact were critical for doing their jobs well. The chief strategy executive position, then, is “a huge job” that should be filled only by highly accomplished business veterans. Indeed, a CSO’s long experience within a single company—specifically, his or her deep knowledge of the chief architects of the existing strategy and its history—can be crucial for building the federation necessary to enact change. The broad mix of skills and experience required of a CSO is rare, which makes those who possess this combination highly valued. Successful execution, therefore, depends more than ever on rapid and effective decision making. All interviews were conducted either at the CSO’s office or via telephone and followed the same semistructured outline and set of questions. To explore the role of the CSO, we conducted 24 interviews with CSOs at U.K. companies that are part of the FTSE 100 Index, across a number of industrial sectors. Even more important, we've helped shape and define what health and well-being means in everyday lives. The first dimension was the stage of the strategy process in which the CSO was involved. A chief information officer usually manages a team of IT specialists responsible for maintaining the day-to-day IT operations. By understanding how the duties of the chief strategy officer (CSO) can vary significantly from organization to organization, boards and CEOs can make better decisions about which type of CSO is necessary for their leadership teams. Some companies, including AIG, Kimberly-Clark, Motorola, and Yahoo!, have discovered a way to fill the execution void: hire a chief strategy officer. Schreiber’s experience, while impressive, is not unique. Under the new CEO, Martin Sullivan, Schreiber’s role has expanded to include formalizing the company’s strategic-planning processes, forging new working relationships and synergies across the organization, and establishing greater transparency and accountability for those people carrying out the company’s strategy. Our survey indicates that this is a common attitude among CSOs: 47% say they use external consultants extensively in their formulation of strategy. Most of the top strategy executives we polled said they split their time almost evenly between strategy formulation and execution, yet their statements reveal a tilt toward the latter. CEOs are being weighed down by the ever-growing complexity of doing business in a global economy. One health care company we studied was rebounding from bankruptcy in 2005, so its strategic emphasis was on fast growth. And executive recruiters confirmed what our interviews revealed: The search for the right candidate, whether internal or external, takes longer than most CEOs expect—a fact that is particularly frustrating for those chief executives looking to implement a growth or innovation agenda quickly. More than half the CSOs in our survey said they are spending more and more time looking at issues within these domains, which aren’t traditional strengths of strategists. Copyright © 2020 Harvard Business School Publishing. A Chief Strategy Officer uniquely defines and executes a company's broad vision. These are the circumstances that prompt companies to seek out CSOs in the first place, and they are partly why CSOs are drawn to the role. Of course, different companies have different strategic imperatives that influence the nature of the CSO role and the type of executive best suited to the task. Organizational Chart Contact Us OCRO Internal Site (OCRO-only) Main Content. Harvard Business Publishing is an affiliate of Harvard Business School. Today’s end-users — customers, commuters, citizens, patients, employees — demand individualized, immediate and intelligent interactions in everything they do, creating an innovation imperative across all business and government sectors. As a result, I’m bringing more of a running-the-company kind of approach to the role.”. One-third of CSOs surveyed described their companies as “under siege.”. Look for CSO candidates with these characteristics: “What we’ve been doing isn’t in line with the company’s strategy—and we need to fix that.” Someone in your organization has the mandate to walk into any office, speak those words, and spark some sort of transformation. Others in the top team divide their time differently, spending more time on both the short term and the long term and less on the medium term. Black’s attitude and approach to his job map closely to another of our research findings: Most top strategy executives are star players more so than professional coaches. When Douglas Conant, the CEO of Campbell Soup, hired CSO M. Carl Johnson in 2001, he cited Johnson’s track record of revitalizing big brands, launching new ones, and improving financial results at Kraft Foods. Chief Communications officer 8. Alignment can bend and then break if it is not continually reinforced. These CSOs carried out activities similar to traditional management consultants. These individuals are rarely abandoned by top executives who recognize their worth. Strategy chiefs must therefore be practical and analytical as well as visionary, Matricciani notes. Duncan N. Angwin is professor of strategy and MBA director at Oxford Brookes University Business School in Oxford, United Kingdom. That meant the heads of Sales, Marketing, M&A, and Strategy Development would have to report to the CGO. Recognizing a need for high-level help, the CEO initially sought a “chief growth officer.” The person chosen for the role, an internal business leader with whom the CEO had a long working relationship, realized that in order to grow, the company needed to rebuild its sales pipeline, explore different product lines, and reposition its brand. In the medium term, CSOs add value by building world-class strategy development and execution capabilities within the company. While the potential benefits are clear, bringing on a CSO is not without its challenges. After the CEO’s six-month search for a strategy chief proved fruitless, he turned to his longtime colleague. CSOs of this type focused almost exclusively on strategy formulation by themselves or with their strategy team. The typical CSO or top strategy executive is not a pure strategist, conducting long-range planning in relative isolation. But even more important for swaying opinions and conveying authority is having deep knowledge in two functional areas that are central to execution these days: technology and human capital. Executive Director, Corporate Finance . It’s true that CSOs can’t effectively resolve a strategy without having had a hand in its creation, but these executives quickly get beyond creation to action. But in many companies, no one’s driving execution. The CSO must intimately understand what makes … The key factor in all of these questions is alignment with company strategy. Chief Strategy Officers (CSOs) face a number of challenges distinct from those faced by other members of the C-Suite—in particular, the breadth and ambiguity of the CSO’s role. September 2015 ... establish an information s ecurity risk management strategy, ... the Chief Operations Officer, Chief … Controller's Office Financial Planning & Analysis University Partnership Program. They preemptively take the lead on strategic questions that business-unit heads don’t have the time to deal with. We also took a closer look at the increasingly popular “chief strategy officer” title, analyzing the press releases and media coverage of more than 100 CSO appointments to determine how the role is evolving. They must be able “to tell [the strategy story] in a way people can understand and buy in to,” says Countrywide’s Janet Matricciani. “My years in consulting taught me how to develop and critique strategy, but the value-added probably comes more from my business leadership experience. And while a tiny fraction reported that they influence others through reflected authority—that is, by having the implicit or explicit support of the CEO—we know that the CSO’s relationship to the chief executive is more critical than that figure indicates. At Cadbury Schweppes, Todd Stitzer went from being CEO of Dr Pepper/7 Up to becoming chief strategy officer to becoming deputy CEO of the entire company to finally being appointed CEO—all between 1997 and 2003. In fact, nearly every CSO in our survey said strategy development and execution in their companies is half deliberate and half emergent. They were transcribed verbatim and analyzed through qualitative data management software. At other companies, innovation is at the core of the change effort. When decisions below the executive suite aren’t being made in accordance with strategy, much of the CSO’s job involves learning why and quickly determining whether to stay the course or change tack. Connect With Us 1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 Phone: (202) 727-2476 Fax: (202) 727-1643 TTY: 711 Email: [email protected] Companies are adding CSOs to their management teams (or at least considering doing so) for several reasons. So he also considers himself the point person for assessing whether strategic initiatives, at all levels of the organization, are in line with the company’s standards and objectives. CSOs ensure corporate strategy gets translated into action, say Breene, Nunes, and Shill. According to our research, they spend an estimated 39% of their time on horizon two, while 36% of their time is devoted to horizon three, and 25% is spent monitoring horizon one. Most of the chief strategy executives we spoke with and studied had significant experience in formulating strategy, often gained at top management consulting firms or through years of strategy-related work in companies—but this was rarely the dominant portion of their careers. Chief Financial officer(CFO) 3. Interviews with executive recruiters point to the growing prevalence of this role in many industries, and CSOs are already serving large multinational companies around the world. They are seasoned executives with a strong strategy orientation who have usually worn many operations hats before taking on the role. CEOs are tapping longtime company veterans with the experience and the social and political capital to cross boundaries quickly and effectively, or they’re bringing outsiders and their fresh growth perspectives into the C-suite. It is responsible for the operation of the Fire Services Communications Centre, the Fire and Ambulance Services Academy. Our investigation revealed that strategy executives are charged with three critical tasks that together form the very definition of strategy execution. The execution of the strategy — ownership and responsibility for its implementation — resided firmly with the business units. An aviation company executive emphasized the point: “We can have the best plan in the world, but if we can’t execute, we won’t be able to pay the bills.” Driving change and enforcing the consistent application of decisions may require taking things as far as Kimberly-Clark’s Black would go: shrinking strategic planning to a small internal team and leveraging the expertise of outside consultants. Chief Strategy Officer (CSO): A chief strategy officer (CSO) is an executive charged with helping formulate, facilitate and communicate an organization's plans for the future. (See Bower and Clark G. Gilbert’s “How Managers’ Everyday Decisions Create—or Destroy—Your Company’s Strategy,” February 2007.). (In 2005, he was named AMD’s chief innovation officer. What Makes a Great Chief Strategy Officer Three things every CSO should think about. Schreiber and other CSOs don’t just wait for the phone to ring, however: They preemptively take the lead on strategic questions that overwhelmed business-unit heads just don’t have time to deal with. Chief Executive officer(CEO) 2. One strategy chief we spoke with said he and the CEO of his company had worked together at three different businesses over a seven-year period before they both ended up at a health care management firm. For underperforming management teams, private-equity funds are often lurking, ready to make a hostile bid. CEOs were always expected to take overall responsibility of corporate strategy, in addition to guiding the organisation’s other vital functions (e.g. CEOs, grappling with the complexity of doing business in a global economy, are too overloaded to stay on top of strategy implementation. Whether they are groomed or recruited, chief strategy executives must be able to work with and influence people across entire organizations and beyond; that’s the heart of the job. Chief strategy executives, therefore, must ensure that the members of the leadership team come to agreement on strategy decisions. Nearly three decades ago, one executive arguing for the creation of a new top strategy role explained why it should not be folded into the COO’s duties. Increased volatility, rapid globalization, the rise of new technologies, industry convergence, and changes in the workforce—all have contributed to an environment in which top-down planning needs to be balanced with quick and agile execution. Office of the Chief Risk Officer 505 Broadway Cardinal Hall, 6th Floor Redwood City, CA 94063 United States. The focus of the job almost always quickly evolves from creating shared alignment around a vision to riding herd on the ensuing change effort. When Snap appointed a chief strategy officer (CSO) in 2014, the move was widely noticed — and not just because the owner of the Snapchat messaging app had picked a banker who made his name advising on the massive initial public offering of Alibaba, the Chinese e-commerce group. They do not emerge from predictable backgrounds with easy-to-map career paths or aspirations, and their skills, experiences, best practices, and preferences run the gamut. As Heidrick & Struggles’s managing partner Krishnan Rajagopalan told us: “People take on the chief strategy role because they want to run the business sooner or later. The reality is far more urgent, however: One-third of our survey respondents went so far as to describe their companies as “under siege.” Most characterized their industries as highly volatile. There are clear short-, medium-, and long-term benefits for companies that name strategy chiefs—advantages that justify the added expense and complexity at the top of the organization. Miles Interim Dean, At tech firms, for example, senior leaders must be knowledgeable about every content business—music, movies, books, video, television—as well as the software and hardware needed to make them all work. The CEO’s vote of confidence and a strong résumé confer the credibility that gets you a fair hearing as a top strategy executive. Most important, they understand how to focus the organization on executing today, not just on planning for tomorrow. The CSO has to be, in effect, the guardian of that space one to three years out, when the decisions made (or not made) today will show consequences. Most entered their companies in planning, functional, or line-management capacities and were not tapped until years later for the top strategy post. COOs and CFOs are too wrapped up in day-to-day dealings. These executives are not, for example, pure strategists, conducting long-range planning in relative isolation. Rather, they are seasoned executives with a strong strategy orientation who have typically led major initiatives or businesses and worn many operating hats before taking on the role. And they make sure decisions at all levels align with strategic objectives. CSOs handle three critical strategy implementation tasks: One health care company rebounding from bankruptcy in 2005 formulated a strategy focused on growth. Our findings identified a significant demarcation between whether the CSO was focused on the formulation of the strategy or the execution of the strategy. ), The CSO at times functions as a sort of “mini CEO,” someone who must see the issues confronting the company from as broad a perspective as the chief executive does, says Kimberly-Clark’s Black, who previously served as COO of Sammons Enterprises, a conglomerate with $27 billion in assets, and as president of Steelcase’s international operations. He’s been the strategy chief under two CEOs at the insurance giant. The chief information officer (CIO) is responsible for Information Technology (IT) strategy to support an organization’s goals and objectives. “Without achieving real understanding and agreement, there will be lots of grinning and backslapping over the strategy but zero change when people get back to their offices.”. Management research and ideas to transform how people lead and innovate. As one of them stated, “It’s very much like what an external consultant would do; the only difference is that we’re internal.” As a result, we have called this archetype the “Internal Consultant.”, This type of CSO adopted a very rational approach to the development of strategy. The CSO assists and reports to the CEO, and to the CFO in some instances. Indeed, chemical company H.B. quarterly magazine, free newsletter, entire archive. They ride herd on change initiatives needed to carry out strategy. Enter the Chief Strategy Officer. “I report to the CEO, and I sometimes represent his issues and concerns more directly when I need to. Boards, under intense pressure to add value themselves, are frequently pulling the plug on CEOs they deem ineffective. Indeed, we found only one who was directly hired from a consultancy. But it may be that a different C-level executive bears the burden of strategy execution in your company—a senior leader like AIG’s Brian Schreiber. To help existing and aspiring CSOs be more effective, and to aid CEOs who think they might need to hire or appoint a strategy chief, we’ve been studying these executives as a class: Who are they? And finally, CEOs these days must be prepared to respond to an array of voices: shareholder advocates, the financial community (Wall Street analysts, private-equity deal makers, hedge-fund managers), government regulators, legislators, attorneys general, NGOs, environmental activists—and that’s just people outside the company. A strategy that is clear one day can become fuzzy the next as people and competitive environments change. The CEO may need to do a hefty amount of evangelizing and relationship management to get the top team to buy in to this restructuring of the org chart. CSOs of this type focused almost exclusively on strategy formulation by themselves or with their strategy team. They’re nominally and ultimately responsible for strategy, but today’s CEOs have less and less time to devote to it. The Assistant Deputy Chief Management Officer (ADCMO) is the delegated decision authority and principal deputy to the DCMO. Our research and many years of experience working with leaders in large organizations confirm that CEOs are formally handing the reins of strategy execution to individuals known by a variety of titles but with increasing frequency as “chief strategy officers.” In the past few years, the number of CSO appointments has surged. The rise in Europe, Middle East and Africa has been higher than in the rest of the world. The CEO is ultimately responsible for the vision and strategy of the corporation—so why hire a CSO? For some, that tenure is much longer: In early 2007, Walgreens promoted John Gleeson, a 37-year veteran of the company, to the company’s newly created CSO post. Around 38% of leading businesses operating in European, Middle Eastern and African (EMEA) countries have opened a position for a Chief Digital Officer in their organization chart. Based on variation in the roles carried out by the CSOs, we have developed a typology of four CSO archetypes. “All our divisions have strategic plans, and I’m part of making them happen,” says Janet Matricciani, the head of strategic planning and chief strategy officer at Countrywide Bank. Chief Information Officer(CIO) 4. 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