chief strategy officer organization chart

Address. Taman H. Powell is a lecturer in strategic management and innovation and director of the MSc Business Strategy and Entrepreneurship Programme at Cardiff Business School in Cardiff, United Kingdom. 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. They are seasoned executives with a strong strategy orientation who have usually worn many operations hats before taking on the role. Stanford. Public scrutiny of compensation packages is only ratcheting up pressure on both boards and CEOs to deliver results in a hurry. Direct interaction with and feedback from the troops is essential for CSOs to keep their companies agile and their strategies flexible. CSOs of this type focused almost exclusively on strategy formulation by themselves or with their strategy team. The Fire Services Headquarters Command (HQ), headed by an Assistant Director of Chief Fire Officer rank to provide planning and management support to the Director as well as policy and logistical support to other Commands. Furthermore, with the overwhelming pace of change of business today– and the extent to which these changes impact different functions within the organization – the realization is that strategic planning and implementation is a full-time job, requiring more discipline, structure, and rigor behind the function. Vice Chancellor & Chief Financial Officer 200 California Hall Berkeley, CA 94720. Big Bang Disruption: Strategy in the Age of Devastating Innovation. Executive Director, Corporate Finance . 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. 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 following are some of the common C-Level titles: 1. A strategy that is clear one day can become fuzzy the next as people and competitive environments change. Copyright © 2020 Harvard Business School Publishing. Most entered their companies in planning, functional, or line-management capacities and were not tapped until years later for the top strategy post. ... focuses on building capabilities across the organization … All rights reserved. They must be able “to tell [the strategy story] in a way people can understand and buy in to,” says Countrywide’s Janet Matricciani. Some companies look outside for a CSO, as Kimberly-Clark and Campbell’s did, but that’s not the norm. CSOs handle three critical strategy implementation tasks: One health care company rebounding from bankruptcy in 2005 formulated a strategy focused on growth. They preemptively take the lead on strategic questions that business-unit heads don’t have the time to deal with. That’s the traditional model, after all—vision, planning, and directives flow […]. “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. He could also ensure that the decision was based on a strong strategic rationale as well as a financial one. AIG’s Brian Schreiber wanted to be the “first call people made every time they had a new [strategic] opportunity.” That way, he could quickly get the right people involved in making a decision—calling on members of the senior team, for instance, or experts in functional areas like treasury and risk management. The execution of the strategy — ownership and responsibility for its implementation — resided firmly with the business units. 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. And AMD’s William T. “Billy” Edwards had a rich set of experiences before being named CSO in 2004, including time as CEO of Hesson Labs, line management roles at Motorola, positions with medical equipment start-ups, and nearly a decade with a top strategy consulting firm. Controller's Office Financial Planning & Analysis University Partnership Program. 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. All executives split their time to varying degrees across three strategy horizons—usefully defined in Mehrdad Baghai, Stephen Coley, and David White’s The Alchemy of Growth to mean extending and defending the core business in the short term (horizon one), building emerging businesses in the medium term (horizon two), and creating viable options for the long term (horizon three). The C-Level titles are the highest titles in corporations or businesses and are given to people who head divisions and disciplines. 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. Immediately before becoming Campbell Soup Company’s CSO, M. Carl Johnson was the executive vice president of Kraft Foods, where he led the former New Meals division through a three-year transformation that helped the unit restore its sales and earnings momentum and significantly grow its operating income. Account. 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. Organizational Chart; Organizational Chart. Conant was confident the new CSO would help do the same for the soup company. “I report to the CEO, and I sometimes represent his issues and concerns more directly when I need to. Your CSO will use their expertise and knowledge on your organization to properly adjust your current strategies. Download the Office of the Chief Financial officer and Senior Vice-President organisation chart.. Chief Financial Officer and Senior Vice-President. 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. The average cost for a company to hire a full-time Chief Strategy Officer is about $292,500 per year. Companies are adding CSOs to their management teams (or at least considering doing so) for several reasons. Indeed, chemical company H.B. CSOs communicate strategy to people throughout the organization and help them see how their work supports it. The CEO is ultimately responsible for the vision and strategy of the corporation—so why hire a CSO? “Half the time I spend with the CEO, [we’re talking about] people and cultural issues,” one strategy chief told us. But CSOs particularly keep their eyes trained on horizon two and work to present a seamless picture of all the horizons. 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. The broad mix of skills and experience required of a CSO is rare, which makes those who possess this combination highly valued. 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. 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. 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. When should we move into a new market? This is where a skilled CSO can be quite beneficial! Based on variation in the roles carried out by the CSOs, we have developed a typology of four CSO archetypes. 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. Finding someone with the skills and experience needed to develop strategy, translate it for people across functions and business units, and drive organizational change is not easy. That’s the traditional model, after all—vision, planning, and directives flow from the very top, and people at all levels of the organization act. They instruct others and serve as mentors, certainly. 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. Chief Information Officer(CIO) 4. To borrow a term from French cinema, they act as réalisateurs. By the end of 2006, the company had achieved dramatic growth and acquired several critical new businesses. 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. CSOs can also help steer the top team away from groupthink and from focusing too much on past practices and accomplishments—problems that can afflict executives who have worked together for a long while. There are good reasons for CEOs to delegate strategy responsibilities to another in the C-suite. The CSO must intimately understand what makes … 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. Board of Trustees: Joseph Neubauer, Chairman (view bio) President: Robert J. Zimmer (view bio) [collapsed title=Provost: Ka Yee C. Lee] View Ka Yee C. Lee's bio Dean, The College: John W. Boyer Dean, Harris School of Public Policy Studies: Katherine Baicker Dean, School of Social Service Administration: Deborah Gorman-Smith Dean, Law School: Thomas J. You must sign in to post a comment.First time here? content, 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. In short order, the health care firm began to enter the new markets, and people who had been hesitant to do business with the financially ailing organization gained confidence in it. “My years in consulting taught me how to develop and critique strategy, but the value-added probably comes more from my business leadership experience. 5 free articles per month, $6.95/article thereafter, free newsletter. By nearly all accounts, strategy development has become a continuous, not periodic, process. 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. Innovation; Technology evolution is constantly transforming the way people interact with the world — raising their expectations every day. quarterly magazine, free newsletter, entire archive. 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. But in many companies, no one’s driving execution. And while in many ways IT is the bailiwick of the CIO or CTO, it’s also a critical domain for CSOs, because technology is critical to virtually every aspect of strategy—for instance, creating new products and services, developing new business models, and improving processes. As a result, the primary focus of the job almost always quickly evolves from creating shared alignment around a vision to riding herd on the ensuing change effort. 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. 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. The CSO assists and reports to the CEO, and to the CFO in some instances. Even more important, we've helped shape and define what health and well-being means in everyday lives. The strategy management challenge has become more and more complicated, in virtually every industry, over the past decade. The second dimension of variation was how the CSO engaged in the strategy process. Maybe it’s the CEO and the CEO only. In the medium term, CSOs add value by building world-class strategy development and execution capabilities within the company. 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. But they’re another management challenge for stressed-out executives, as big companies enter into literally thousands of relationships spanning the globe. Chief Executives Manager(CEM) 6. A Chief Strategy Officer uniquely defines and executes a company's broad vision. What Makes a Great Chief Strategy Officer Three things every CSO should think about. Clarifying the corporate vision for others can sound like a relatively leisurely activity, involving meandering chats in offices and conference rooms across the enterprise. 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. And keeping on top of the challenges at a range of interconnected businesses can tax even the most focused and energetic chief executives. COOs and CFOs are too wrapped up in day-to-day dealings. The strategy chiefs we surveyed said they had known the CEO at their companies for five years, on average, before becoming the CSO. “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.”. Just as important, the CSO must make certain that those decisions aren’t watered down or ignored as they are translated throughout the organization. Chief Executive officer(CEO) 2. The ADCMO is responsible for ensuring business improvement policies and programs are efficiently and effectively designed, executed, and aligned with DoD strategy. 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, They haven’t run a whole company before.”. Chief administrative officer 9. “No strategy can just be handed down to an organization,” says Kirk Klasson, former vice president of strategy for Novell. Johnson & Johnson is a company of enduring strength. 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. 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. Even the most compelling strategy is useless if it isn’t implemented. The strategy chief at a software company, for instance, recalled having to help members of the senior management team realize that their lack of international experience was preventing the company from carrying out its plans to expand overseas quickly and decisively. In the early 1990s-2000s, when modern corporate strategy was establishing a foothold, senior strategists did not have an individual strategy remit. Sign up for a free account: Comment on articles and get access to many more articles. A Chief Strategy Officer (CSO) is a C-level executive who develops and executes strategies to accomplish financial growth in a company. CSOs don’t just wait for the phone to ring. “It’s a huge job,” the CEO told the manager, “but you’ll have more impact doing this than you would leading a division—and you’re the person I’d feel most comfortable with.” His colleague accepted. Enter the Chief Strategy Officer. Then consider the nature of strategy itself. 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. As a result, I’m bringing more of a running-the-company kind of approach to the role.”. Strategic rationale as well as advise example, pure strategists, conducting long-range planning in relative isolation when an is. Finally, a chief strategy Officer is about $ 292,500 per year in... Next as people and competitive environments change environments change employ a handful of high-level.. Vision and strategy development has become a continuous, not just on planning for tomorrow appointed to executive..., ‘ what implicit decisions have we made that need to up pressure on both boards and CEOs deliver! Chief executive Officer ( CEO ) role the change effort shouldn ’ t being made accordance... There ’ s office or via telephone and followed the same for the strategy... 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