As any C-suite officer will tell you, change is constant. One role in particular has experienced this recently with shifting expectations for the Chief Strategy Officer (CSO). The pace of technology advancements and ongoing global uncertainty are changing the needs of CSOs to support company growth.
Deloitte recently explored the CSO role as part of its analysis, which was first shared in its report, Designing for Growth in the C-Suite. From 2018 through 2023, Deloitte examined 825 CSO role postings over six years to assess what, if any, changes took place.
In 2018, postings focused more on customer, sales, and marketing skills. According to the report, “While this may have mirrored the organizational importance of connecting customer-centricity to strategy, the current rise in technical and quantitative capabilities, like data science and artificial intelligence skills, looks to be shifting what organizations are seeking from their prospective CSOs. That is, the data may be showing that organizations now seek more analytical, scientific, and financially oriented leaders who can help drive an enterprise wide strategy.”
Expectations have shifted to a focus on financial and quantitative skills. Some of the changes noted include a 15% drop in postings with marketing strategy listed as a core skill between 2018 and 2023. There was a similar decrease in sales and customer service skills as well. Conversely, there was a 14% increase in general finance skills during the same time frame. There was also an increase in analysis, research, development, and financial modeling skills, up 16% and 8%, respectively.
There are several reasons we’re seeing the shift to quantitative skills. According to Deloitte, “Perceived economic and market uncertainties are making financial acumen and modeling an essential element of the strategy function. CSOs often wear the hat of “banker” and work closely with corporate development or hold that remit as part of their responsibilities — something that is often important for major financial decisions, like strategic mergers and acquisitions.”
Another possible reason is the advancement of technical and data skills across departments. According to Deloitte, “More organizations are moving strategy from a centralized function to a federated model (one that serves both the enterprise and individual business units). This shift in structure aligns with the trend toward more digitally connected organizations.” Technology has also accelerated decision-making timelines, requiring CSOs to use financial, analytical, and scientific skills to assess issues and suggest solutions quickly.
Another reason for the shifting expectations of the CSO is the changing nature of business and the increase in C-suite roles. As technology expands the way companies go to market, new roles focus on aspects formerly part of the CSO’s responsibilities. For example, in addition to a Chief Marketing Officer, there are now roles for a Chief Revenue Officer, Chief Growth Officer, Chief Experience Officer, and Chief Customer Success Officer.
Per Deloitte, the following can help today’s CSOs make an impact:
- Embrace uncertainty to build resiliency
- Increase speed to insights for more decisive decision-making
- Leverage data and analytics to focus on the right priorities
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