The strategist's change: How successful Chief Strategy Officers transform their companies
In a world of permanent change where geopolitical factors strongly impact the economic context, companies need to be in a position to review and adapt their strategy and business model. For two thirds of firms, transformation is therefore the normal state of affairs as they endeavor to do business successfully; 90 percent of companies have an in-house strategy department these days.
This is one of the findings of the study, "The strategist's change – How successful CSOs transform their companies" by Roland Berger Strategy Consultants and the University of St. Gallen. The study is based on an extensive survey of 160 CSOs from European companies across a range of industries.
The Chief Strategy Officer has become established as an important member of the top management team in most companies as they strive to efficiently drive this permanent process of transformation. "CSOs enjoy increasingly high status in companies across all industries," explains Roland Berger Partner Tim Zimmermann. "They report direct to their company's top management and stand ready to advise them on shaping the future of their company."
But even though the role of CSOs is growing in importance all the time, they are faced with increasing resource shortages – both financial and human. "Tasked with devising and implementing the right strategy for their firm, the chief strategist needs sufficient resources to be able to install a dedicated team," explains Prof. Markus Menz from the Institute of Management at the University of St. Gallen.
Yet the reality on the ground is often different, with companies across Germany, Switzerland and Austria now having even fewer full-time employees in their strategy departments than they had three years ago. "The widely held notion of bloated strategy departments is a myth in most companies," says Prof. Menz. However, the study did show up some discrepancies between industries: While financial services companies and biotech, pharmaceuticals and chemicals firms do have much larger strategy departments, players in the service industry and in consumer goods and retail are considerably smaller in that regard.