chief strategy officer organization chart
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. 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. In the early 1990s-2000s, when modern corporate strategy was establishing a foothold, senior strategists did not have an individual strategy remit. Innovation; Technology evolution is constantly transforming the way people interact with the world — raising their expectations every day. The broad mix of skills and experience required of a CSO is rare, which makes those who possess this combination highly valued. He or she must be that person who, in the CEO’s stead, can walk into any office and test whether the decisions being made are aligned with the strategy and are creating the desired results. Public scrutiny of compensation packages is only ratcheting up pressure on both boards and CEOs to deliver results in a hurry. 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. The average cost for a company to hire a full-time Chief Strategy Officer is about $292,500 per year. Direct interaction with and feedback from the troops is essential for CSOs to keep their companies agile and their strategies flexible. 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. Clarifying the corporate vision can sound like a leisurely activity, but the reality is far more urgent. Chief strategy executives, therefore, must ensure that the members of the leadership team come to agreement on strategy decisions. The demands and intricacies of conducting business in multiple cultures, time zones, and political or regulatory environments are exacting a stiff toll on globe-trotting CEOs. Chief Financial officer(CFO) 3. A Chief Strategy Officer uniquely defines and executes a company's broad vision. The typical CSO or top strategy executive is not a pure strategist, conducting long-range planning in relative isolation. 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. By 2005, according to an article in Advertising Age, the “low-key, thoughtful, and almost professorial” Johnson had helped propel a turnaround at Campbell’s by pushing for innovations in products, packaging, and shelving and by supporting it all with investments in marketing. 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. 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. Most entered their companies in planning, functional, or line-management capacities and were not tapped until years later for the top strategy post. Or what decisions have we not made that we need to make, because we’re heading down a path and it’s going to be hard to reverse course?’” explains Kimberly-Clark’s Black. Many strategy chiefs are creating departments specifically for this purpose, hiring people with strong strategy-related skills and competencies (business development, competitive analysis, M&A expertise, and the like). The following are some of the common C-Level titles: 1. Start with changes to the business landscape—complex organizational structures, rapid globalization, new regulations, the struggle to innovate—that make it ever more difficult for CEOs to be on top of everything, even an area as important as strategy execution. Strategy executives are charged with three critical jobs that together form the very definition of strategy execution. Fundamentally, these are people who wield the authority, and have the complex range of skills, to make strategy happen. Special Offer. Harvard Business Publishing is an affiliate of Harvard Business School. 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. Maybe it’s the CEO and the CEO only. Greater complexity on all fronts may explain why, according to one study, top management spends less than three hours a month, on average, discussing strategy issues (including mergers and acquisitions) or making strategic decisions. Get weekly updates on how global companies are managing in a changing world. “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.”. Some companies, including AIG, Kimberly-Clark, Motorola, and Yahoo!, have discovered a way to fill the execution void: hire a chief strategy officer. The focus of the job almost always quickly evolves from creating shared alignment around a vision to riding herd on the ensuing change effort. Further, as Harvard Business School professor Joseph L. Bower has noted in these pages, iron-fisted control of execution often eludes the top team’s grasp, as line executives seek to define strategy on their own terms. 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] To follow through on their mandate, successful strategy executives employ a handful of high-level principles. 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. “Half the time I spend with the CEO, [we’re talking about] people and cultural issues,” one strategy chief told us. One health care company we studied was rebounding from bankruptcy in 2005, so its strategic emphasis was on fast growth. Indeed, chemical company H.B. Management research and ideas to transform how people lead and innovate. That is why more and more companies—including Motorola, Marsh & McLennan, NationsHealth, Universal Pictures, and Yahoo, along with the other organizations we’ve discussed in this article—have found it necessary to hire CSOs. 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. Some companies look outside for a CSO, as Kimberly-Clark and Campbell’s did, but that’s not the norm. 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. 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? 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. The strategy chiefs we surveyed said they had known the CEO at their companies for five years, on average, before becoming the CSO. Many CSOs therefore have long-standing relationships with their CEOs. Our initial observation was that CSOs are, in many ways, as diverse as the titles they hold. Clarifying the corporate vision for others can sound like a relatively leisurely activity, involving meandering chats in offices and conference rooms across the enterprise. Half the job involves learning why decisions aren’t being made in accordance with strategy and quickly determining whether to stay the course. The execution of the strategy — ownership and responsibility for its implementation — resided firmly with the business units. Stanford. The key factor in all of these questions is alignment with company strategy. He or she must be that person who, in the CEO’s stead, can walk into anyone’s office and test whether the decisions being made are aligned with the strategy and are creating the desired results. 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. Controller's Office Financial Planning & Analysis University Partnership Program. Artificial Intelligence and Business Strategy, How Leading Companies Are Innovating Remotely, Create We rounded out the research with in-depth interviews of chief strategy officers from various industries and backgrounds. Paying a contract CSO less than $49,000 for 6 months minus benefits is a reasonable alternative to hiring a full-time executive level W-2 employee. One-third of CSOs surveyed described their companies as “under siege.”. CSOs of this type focused almost exclusively on strategy formulation by themselves or with their strategy team. Should we be investing in developing a new product or improving an existing product? For instance, the top management team of one company held a consensus view that IT was an “overhead activity” until its CSO helped it adopt a new perspective: technology as a partner in and enabler of strategy. They instruct others and serve as mentors, certainly. 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. Web Login. 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). 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. These CSOs carried out activities similar to traditional management consultants. September 2015 ... establish an information s ecurity risk management strategy, ... the Chief Operations Officer, Chief … They were transcribed verbatim and analyzed through qualitative data management software. 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. “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. For underperforming management teams, private-equity funds are often lurking, ready to make a hostile bid. Miles Interim Dean, Organizational Chart; Organizational Chart. CSOs ensure corporate strategy gets translated into action, say Breene, Nunes, and Shill. Copyright © 2020 Harvard Business School Publishing. But most CSOs consider themselves doers first, with the mandate, credentials, and desire to act as well as advise. He could also ensure that the decision was based on a strong strategic rationale as well as a financial one. Our investigation revealed that strategy executives are charged with three critical tasks that together form the very definition of strategy execution. 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. 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. Chief Business officer 10. CEOs are being weighed down by the ever-growing complexity of doing business in a global economy. To borrow a term from French cinema, they act as réalisateurs. Our research was complicated by the existence of a great diversity of titles that fit the role of chief strategy officer—more than 90, in fact. 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. Vice Chancellor & Chief Financial Officer 200 California Hall Berkeley, CA 94720. We didn’t want to get bogged down by this abundance of titles, so we surveyed a sample of large global companies to find executives who were considered—and who considered themselves—the chief strategy executives at their organizations. 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. The members of the senior team had been looking at the issue, in the words of one executive, through a “heritage lens.” Their shared history in the company was clouding their perspective on the need for change. 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. These CSOs carried out activities similar to traditional management consultants. Hire a CSO, and you help your senior team deliver faster, better decisions while building world-class execution capabilities throughout your company. Chief administrative officer 9. Even the most compelling strategy is useless if it isn’t implemented. Executive Director, Corporate Finance . 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. Second, CSOs must drive immediate change. “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. Even more important, we've helped shape and define what health and well-being means in everyday lives. A chief information officer usually manages a team of IT specialists responsible for maintaining the day-to-day IT operations. Chief Engineering officer 7. Nowadays, Schreiber says, the successful creation and execution of strategy requires not only good processes but also the ability to make quick decisions. 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. The first dimension was the stage of the strategy process in which the CSO was involved. Most important, they understand how to focus the organization on executing today, not just on planning for tomorrow. Secondary data — company reports, strategy documents and presentations — were used to complement the interviews. They are seasoned executives with a strong strategy orientation who have usually worn many operations hats before taking on the role. These leaders develop strategy and oversee functional teams responsible for safety and security, human resources, finance, information technology, real estate and facilities planning, construction, and maintenance, business operations, audit, Just as important, the CSO must make certain that those decisions aren’t watered down or ignored as they are translated throughout the organization. Johnson & Johnson is a company of enduring strength. 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 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. Post a Chief Strategy Officer job to 100 job boards with one submission. But CSOs particularly keep their eyes trained on horizon two and work to present a seamless picture of all the horizons. What companies should we consider acquiring? CSOs handle three critical strategy implementation tasks: One health care company rebounding from bankruptcy in 2005 formulated a strategy focused on growth. The CEO is ultimately responsible for the vision and strategy of the corporation—so why hire a CSO? The Office of the Chief Information Officer is under the leadership of the Chief Information Officer, Gundeep Ahluwalia, with Deputy Chief Information Officer (DCIO) for Administration and Strategy Louis (Lou) Charlier and the Deputy Chief Information Officer for Operations, Rick Kryger. The soup company evolves from creating shared alignment around a vision to riding herd on change initiatives to! Confident the new CSO would help do the same semistructured outline and set its.... Business units the stage of the chief strategy officer organization chart strategy officers from various industries and backgrounds strategic rationale as as. 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