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The C-Suite has been on a journey of transformation, evolving from what used to be a traditional leadership group of the CEO, CFO and COO to a myriad of titles, responsibilities and, indeed, seniority.
C-Suite titles can now include the following, amongst others:
- Chief Digital Officer
- Chief Sustainability Officer
- Chief Diversity Officer
- Chief Data Officer
- Chief Innovation Officer
- Chief Risk Officer
- Chief Wellbeing Officer
- Chief AI Officer
It is important to note that, with the growth of the C-Suite, being a member of the “C-Suite team” does not necessarily mean you belong on the executive team.
The broadening scope and increasing complexity of C-Suite priorities and functions have given rise to a new C-Suite, one where it is critical to:
- Design the strategically needed roles
- Clarify which roles are enterprise critical and hence, belong on the executive team; and
- Adopt titles and reporting lines to define roles, responsibilities, and status.
Designing a Fit-for-Purpose C-Suite
It is a commonly held belief in leadership that, as groups expand beyond five members, coordination costs climb dramatically and decision-making quality declines. As such, when designing a C-Suite or leadership team, it is vital to minimise “adding chiefs,” as this may dilute clarity, slow decision-making, and increase the odds of overlap or conflict – more chiefs may result in more politics, not more performance.
The traditional CEO and CFO roles remain an undisputed requirement for most companies. Designing the remaining C-Suite should be deliberate and align with the entity’s strategy. Strategy clarifies the capabilities your company must excel at to differentiate itself from its competitors.
Common considerations include:
- Data, technology, innovation, and AI need to sit with leaders; do these need to be in the C-Suite?
- Human resources and talent acquisition can be clearly defined as being owned by a potential CPO. Still, consideration should be given to the need for a leader/owner of wellbeing, diversity, and experience.
- Sustainability: for your entity or for your customers? Is this a C-Suite role you may need? Or can it sit below the executive team with clear reporting lines?
- Perhaps a Chief Product Officer is needed if your organisation is product-driven?
- Does the company need a COO? What has often been a staple in companies to date is now being broken down into other titles or bled into functional roles.
Key Takeaways
What is in no doubt is the C-Suite’s critical role in a company.
It leads, sets the tone, and drives the strategy; hence, the roles need to be clearly defined. These roles must be presented to the market and internally in a transparent manner, with minimal functional overlap. Where there is overlap, concentrate on these areas of convergence – the seams – and ensure that ultimate ownership is understood for all decisions. Dual ownership rarely breeds successful outcomes.
In short, design your organisational structure and then acquire the talent. Don’t let leadership morph organically, as it may quickly become unwieldy.
Barden Executive Search
Barden partners with Boards and executive teams to appoint leaders and build future-ready organisations. Our founders and senior leaders work directly with clients, bringing first-hand experience of scaling businesses and driving growth. Reach out to ed.heffernan@Barden.ie to connect. Your Leaders, found by Ours.