Chief strategy officer

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A chief strategy officer (CSO) is an executive that usually reports to the CEO and has primary responsibility for strategy formulation and management, including developing the corporate vision and strategy, overseeing strategic planning, and leading strategic initiatives, including M&A, transformation, partnerships, and cost reduction. Some companies give the title of Chief Strategist or Chief Business Officer to its senior executives who are holding the top strategy role.

Contents

The need for a CSO position may be a result of CEOs having less time to devote to strategy and/or to CEOs with less experience with developing strategy (e.g., many start up CEOs) along with uncertain and increasingly complex global environments. All of these factors increase the need for professional strategy development. [1] [2] As a result, the position can be seen in fast moving tech companies, as well in academic, and nonprofit organizations. [3] [4] In recent years, the CSO position increased in popularity in highly professional companies with significant growth and scalability ambitions, which is reflected by the high number of US tech companies (nearly 50% of S&P 500 firms) who created CSO positions in their top management teams. [5] According to a 2013 IBM survey, 67% of CEOs named the CSO as a crucial role–second only to the CFO, and more recent examples and studies by major recruiting firms have shown that CSOs had the highest growth in C-Suite positions being directly elevated to the CEO position. [6] [7]

Responsibilities

The CSO is an advisory and a deal making role; both a leader and doer, with the responsibility for understanding and formulating corporate strategy from an operational point of view, as well as ensuring that strategic initiatives and the corporate portfolio of businesses are optimized to support the strategy. The CSO must see the issues confronting the company from as broad a perspective as the chief executive does, and the CSO is often heavily involved in operational day-to-day projects working close together with key staff on business critical initiatives in order to utilise proven leadership capabilities and support less senior team members with coaching and deliver based on the CSO's high capacity project management and execution engine. [8] This unique background takes a multitude of different operating experiences, and must include being both a creative thinker and influential collaborator. [9] In quite a few cases, CSOs may be charged with overall business development including identifying gaps in the business or capabilities portfolios. They then make build, buy, or partner decisions to best fill those gaps. The Chief Strategy Officer oversees the company's M&A agenda, strategic partnerships, joint ventures, and divestitures. M&A responsibilities include not only identifying, evaluating, structuring and executing deals, but also managing or supporting related aspects to the deal such as financing and post-merger integration. The business development role can also encompass licensing deals and venture capital investments that support the strategic agenda. [10] CSOs are often executives who have worn many hats at a variety of companies before taking on CSO position. [11] [12]

Typical CSO responsibilities include: [13] [14]

As a senior strategic leader, collaborate with other functions within the organization, specifically:

In terms of the CSO's role, which varies significantly from organization to organization and evolves over time, the two basic roles strategy developer and strategy implementer are observable. [15] This dichotomy can be further divided into four CSO archetypes. [16]

Qualifications

CSOs often hold more advanced degrees, commonly a Master of Business Administration (MBA). Many executives holding the top strategy spot have had extensive experience in strategy development often at top management consulting firms, where they can obtain strategy experience across a broad spectrum of industries, c-suite teams, and strategic problems. [17] [18] [19] In addition, many chief strategy officers also have backgrounds outside of strategy such as P&L management, operations, or corporate development in addition to their strategy experience. [20] [21] An HBR study found that the most successful CSOs have some planning, functional, or line-management skills in addition to their core strategy skills before assuming the top strategy role. [22] They tend to have previous work experience at top management consulting firms or strategy-related work at other companies. [22]

Chief Global Strategist

A Chief Global Strategist (CGS) is one of the highest-ranking corporate officers, administrators, corporate administrators, executives, or executive officers, in charge of the global strategy and the domestic and international expansion of a corporation, company, organization, or agency.

The position is relatively new in the private sector, and a reflection of the influence of globalization upon companies and other organizations that seek to expand their influence, whether as a matter of necessity to survive, or the exploration of an opportunity.

A prominent example of a CGS is Howard Schultz of Starbucks Corporation who was Chairman and CEO; however, in 2000 he left the position of CEO to become the Chief Global Strategist. Schultz returned to his previous role as CEO on January 18, 2008.(http://www.starbucks.com/about-us/company-information/starbucks-company-timeline\ | access-date=26 September 2016 | publisher=Starbucks.com)

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Corporate titles or business titles are given to corporate officers to show what duties and responsibilities they have in the organization. Such titles are used by publicly and privately held for-profit corporations, cooperatives, non-profit organizations, educational institutions, partnerships, and sole proprietorships that also confer corporate titles.

A chief executive officer (CEO) is the highest officer charged with the management of an organization – especially a company or nonprofit institution.

The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for making decisions for the company for projects and its finances The CFO thus has ultimate authority over the finance unit and is the chief financial spokesperson for the organization.

Strategic planning is an organization's process of defining its strategy or direction, and making decisions on allocating its resources to attain strategic goals.

In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates. Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static in nature; the models can include a feedback loop to monitor execution and to inform the next round of planning.

A chief operating officer (COO) is an executive in charge of the daily operations of an organization, i.e., personnel, resources, and logistics. COOs are usually second-in-command immediately after the CEO, and reports directly to them and acts on their behalf in their absence.

A strategist is a person with responsibility for the formulation and implementation of a strategy. Strategy generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources). The senior leadership of an organization is generally tasked with determining strategy. Strategy can be intended or can emerge as a pattern of activity as the organization adapts to its environment or competes. It involves activities such as strategic planning and strategic thinking.

A chief marketing officer (CMO), also called a global marketing officer or marketing director, or chief brand officer, is a corporate executive responsible for managing marketing activities in an organization. Whilst historically these titles may have signified a legal responsibility, for example at Companies House in the UK, the titles are less strict/formal in the 21st Century and allow companies to acknowledge the evolving and increasingly significant role that marketers can play in an organisation, not least because of the inherent character of successful marketers. The CMO leads brand management, marketing communications, market research, product marketing, distribution channel management, pricing, customer success, and customer service.

The chief risk officer (CRO), chief risk management officer (CRMO), or chief risk and compliance officer (CRCO) of a firm or corporation is the executive accountable for enabling the efficient and effective governance of significant risks, and related opportunities, to a business and its various segments. Risks are commonly categorized as strategic, reputational, operational, financial, or compliance-related. CROs are accountable to the Executive Committee and The Board for enabling the business to balance risk and reward. In more complex organizations, they are generally responsible for coordinating the organization's Enterprise Risk Management (ERM) approach. The CRO is responsible for assessing and mitigating significant competitive, regulatory, and technological threats to a firm's capital and earnings. The CRO roles and responsibilities vary depending on the size of the organization and industry. The CRO works to ensure that the firm is compliant with government regulations, such as Sarbanes–Oxley, and reviews factors that could negatively affect investments. Typically, the CRO is responsible for the firm's risk management operations, including managing, identifying, evaluating, reporting and overseeing the firm's risks externally and internally to the organization and works diligently with senior management such as chief executive officer and chief financial officer.

A chief visionary officer or chief vision officer (CVO) is an executive function in a company like a CEO or COO. The title is sometimes used to formalize a high-level advisory position and other times used to define a higher-ranking position than that held by the CEO. In some cases, the CVO is added to the CEO-title, much in the same way that people with multiple university degrees list them after their names.

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. The CDO is a member of the executive management team and manager of enterprise-wide data processing and data mining.

A chief information security officer (CISO) is a senior-level executive within an organization responsible for establishing and maintaining the enterprise vision, strategy, and program to ensure information assets and technologies are adequately protected. The CISO directs staff in identifying, developing, implementing, and maintaining processes across the enterprise to reduce information and information technology (IT) risks. They respond to incidents, establish appropriate standards and controls, manage security technologies, and direct the establishment and implementation of policies and procedures. The CISO is also usually responsible for information-related compliance. The CISO is also responsible for protecting proprietary information and assets of the company, including the data of clients and consumers. CISO works with other executives to make sure the company is growing in a responsible and ethical manner.

A chief human resources officer (CHRO) or chief people officer (CPO) is a corporate officer who oversees all aspects of human resource management and industrial relations policies, practices and operations for an organization. Similar job titles include: chief people officer, chief personnel officer, executive vice president of human resources and senior vice president of human resources. Roles and responsibilities of a typical CHRO can be categorized as follows: workforce strategist, organizational and performance conductor, HR service delivery owner, compliance and governance regulator, and coach and adviser to the senior leadership team and the board of directors. CHROs may also be involved in board member selection and orientation, executive compensation, and succession planning. In addition, functions such as communications, facilities, public relations and related areas may fall within the scope of the CHRO role. Increasingly, CHROs report directly to chief executive officers and are members of the most senior-level committees of a company.

The chief sustainability officer, sometimes known by other titles, is the corporate title of an executive position within a corporation that is in charge of the corporation's "environmental" programs. Several companies have created such environmental manager positions in the 21st century to formalize their commitment to the environment. The rise of the investor ESG movement and stakeholder capitalism, has increased the need for corporations to address sustainability and social issues across their value chain, and address growing needs of external stakeholders. Normally these responsibilities rest with the facility manager, who has provided cost effective resource and environmental control as part of the basic services necessary for the company to function. However, as sustainability initiatives have expanded beyond the facility — so has the importance of the position to what is now a C-level executive role. The position of CSO has not been standardized across industries and individual companies which leads it to take on differing roles depending on the organization. The position has also been challenged as symbolic, in that it does not actually have the effect of increasing sustainable practices.

Chief business officer (CBO) is the position of the top operating executive of growing commercial companies or an academic/research institution. In the commercial space, CBO shows leadership in deal-making experience with a clear record of results and ultimate transactional responsibility. In higher education, the titles of vice president, associate dean, assistant dean, and director are also used for the role of the chief business officer.

Corporate foresight has been conceptualised by strategic foresight practitioners and academics working and/or studying corporations as a set of practices, a set of capabilities and an ability of a firm. It enables firms to detect discontinuous change early, interpret its consequences for the firm, and inform future courses of action to ensure the long-term survival and success of the company.

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A chief reputation officer (CRO) is an executive-level position at a corporation, company, organization, or institution, typically reporting directly to the CEO or board of directors and belonging to the executive board of directors.

<span class="mw-page-title-main">Dean A. Connor</span>

Dean Connor serves as Chairperson of the Canadian Pension Plan Investment Board and Chair of the Board of Trustees of the University Health Network. Connor was President and Chief Executive Officer of Sun Life Financial for ten years up to his retirement from that role in 2021.

References

  1. ↑ Breene, R. Timothy S.; Nunes, Paul; Shill, Walter E. (October 2007). "The Chief Strategy Officer, Harvard Business Review, Oct. 2007". Harvard Business Review. Archived from the original on 2014-08-19. Retrieved 2014-08-17.
  2. ↑ "The Chief Strategy Officer in the European Firm: Professionalising Strategy in Times of Uncertainty, The European Business Review, May-Jun. 2013". 9 May 2013. Archived from the original on 2015-02-11. Retrieved 2015-02-11.
  3. ↑ "Rise of the Chief Strategy Officer, Outlook Journal, Jan. 2008". Archived from the original on 2013-04-01. Retrieved 2013-04-02.
  4. ↑ "Charities Turn to Chief Strategy Officers To Help Plan Their Future, The Chronicle of Philanthropy, Oct. 2013". Archived from the original on 2014-11-20. Retrieved 2014-08-17.
  5. ↑ Menz, Markus (2013). "Chief strategy officers: Contingency analysis of their presence in top management teams". Strategic Management Journal. 35 (3): 461–471. doi:10.1002/smj.2104.
  6. ↑ "Route to the Top 2020". www.heidrick.com. Retrieved 2021-11-19.
  7. ↑ Shein, Esther (February 2, 2021). "CEOs are challenged to manage an "anywhere" workforce". TechRepublic. Retrieved 2021-11-28.
  8. ↑ "The Chief Strategy Officer". Harvard Business Review. 2007-10-01. ISSN   0017-8012 . Retrieved 2021-04-05.
  9. ↑ "The Role of the Chief Strategy Officer, Ephor Group". Archived from the original on 2014-08-19. Retrieved 2014-08-17.
  10. ↑ "Making of Successful Chief Strategy Officer". Deloitte United States. Retrieved 2021-04-05.
  11. ↑ Breene, R. Timothy S.; Nunes, Paul; Shill, Walter E. (October 2007). "The Chief Strategy Officer, Harvard Business Review, Oct. 2007". Harvard Business Review. Archived from the original on 2014-08-19. Retrieved 2014-08-17.
  12. ↑ "Rise of the Chief Strategy Officer, Outlook Journal, Jan. 2008". Archived from the original on 2013-04-01. Retrieved 2013-04-02.
  13. ↑ "What is Chief Strategy Officer (CSO)? - Definition from WhatIs.com". SearchCIO. Retrieved 2021-04-05.
  14. ↑ "Understanding the Role of the Chief Strategy Officer, BCG Perspectives, December 2013". Archived from the original on 2015-09-12. Retrieved 2014-08-17.
  15. ↑ "The Strategist's Change, Think Act, Nov. 2014" (PDF). Archived (PDF) from the original on 2017-10-18. Retrieved 2017-10-18.
  16. ↑ "The Role of the Chief Strategy Officer, MIT Sloan Management Review, Fall 2012". 18 September 2012. Archived from the original on 2014-09-26. Retrieved 2014-08-17.
  17. ↑ "The Chief Strategy Officer". Harvard Business Review. 2007-10-01. ISSN   0017-8012 . Retrieved 2021-05-26.
  18. ↑ "Indra Nooyi Pepsico - Who Am I ? By Kevin Batavia". sites.google.com. Retrieved 2021-05-26.
  19. ↑ "Kimberly-Clark Names Robert W. Black As Chief Strategy Officer | Kimberly-Clark Corporation". investor.kimberly-clark.com. Retrieved 2021-05-26.
  20. ↑ Balakrishnan, Anita (2017-03-26). "How Imran Khan became the secret weapon behind the year's biggest tech IPO". CNBC. Retrieved 2021-05-26.
  21. ↑ "Here's How To Become A Chief Strategy Officer In 2021". www.zippia.com. 2020-10-02. Retrieved 2021-05-26.
  22. 1 2 "The Chief Strategy Officer". Harvard Business Review. 2007-10-01. ISSN   0017-8012 . Retrieved 2021-05-26.
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