For new chief strategy officers (CSOs) or experienced CSOs entering a company without an established strategy function, the process of designing and operating a successful strategy office can be complex. Recently, the Chief Strategy Officer Podcast featured two seasoned CSO guests who have navigated the challenges of building strategy offices in different industries. Roopa Unnikrishnan, the CSO at IDEX Corporation, and Eric Chesin, the CSO at Anywhere Real Estate, have both made significant strides in shaping the strategic direction of their organizations.
In the episode, we explore how these leaders set up their strategy offices from the ground up, how they adapted to the evolving needs of their industries, and the challenges they faced along the way. We discuss the importance of aligning with the CEO and board, building the right team, and maintaining agility in a constantly changing business environment.
They cover:
- How to determine the focus areas for a strategy office
- Tips for managing stakeholders and building relationships and influence
- Four filters for managing the capacity of the strategy office and CSOs deciding what problem to work on and which to say “no” to
- The three things every CSO should do when they get promoted to the role or start at a new company
Key questions covered in this podcast episode:
- (5:09) Can you share a little bit of background on how you entered the strategy office?
- (11:33) How do you choose what the strategy office should focus on?
- (16:56) Can you describe the process of negotiating with the CEO what your strategy office should do?
- (21:20) How do you gracefully negotiate what the CSO should not do? How do you train the organization to know what to use you for?
- (26:32) How does the strategy office create talent for the company?
- (28:17) What is the checklist of things a new CSO should think about in designing the strategy office?
- (35:47) How did you set up a strategy community?
- (38:30) What are the top things a new CSO needs to evaluate or execute to put them on the path to success?
- (43:07) Any particular tools or resources that you suggest for a new strategy officer?
Determining Focus Areas for the Strategy Office
One of the primary challenges for a CSO is identifying the most critical areas of focus for the strategy office. Chesin emphasizes the importance of aligning with the CEO’s vision while remaining adaptable to market conditions. He states, “The power of a strategy department is really to be able to bob and weave to where the business needs something today.”
Unnikrishnan adds that the strategy office should concentrate on long-term total shareholder returns, growth, and value. She cautions against becoming an “order taker,” stressing the importance of maintaining a focus on enterprise-level growth.
“The power of a strategy department is really to be able to bob and weave to where the business needs something today.” – Chesin
Managing Stakeholders and Building Influence
Successful CSOs must excel at managing stakeholders and building relationships across the organization. Unnikrishnan highlights the importance of collaborative relationships, noting, “There will be things, ideas that are floated to me, insights that come to me that may not actually get to a CEO because of the role that the CEO plays.”
Chesin emphasizes the need for independence in the CSO role, stating, “In order to truly serve the company, you need a little bit of independence. So you can build your relationships across the business.” This independence allows the CSO to develop strategic imperatives that garner buy-in from various departments, rather than being perceived as top-down directives.
"I might actually be providing some amount of course corrective. There's a little rocket that's in the edge of the larger missile that just allows a little bit of a course corrective. The gyroscopic thruster that allows to correct direction or make a subtle shift." – Unnikrishnan
Managing Capacity and Prioritizing Problems
With limited resources, CSOs must carefully manage their team’s capacity and prioritize which problems to address. Chesin suggests maintaining a small team to avoid being overwhelmed with requests. He outlines four primary reasons for taking on work:
- Directives from the CEO or board
- Collectively agreed-upon initiatives
- Opportunities to build trust with other departments
- Projects that develop the team’s skills
Unnikrishnan advocates for creating a “strategy community” within the organization. This approach involves identifying trusted individuals in various departments who are forward-thinking about strategy and incorporating them into a broader network. This community can then be trained in strategic skills and methodologies, fostering a culture of strategic thinking throughout the organization.
Three Essential Actions for New CSOs
For newly appointed CSOs or those starting at a new company, Chesin and Unnikrishnan recommend three critical actions:
- Gain Deep Understanding: Take the time to thoroughly comprehend the company’s strategy and industry dynamics. This foundational knowledge is crucial for effective decision-making and strategic planning.
- Establish Trust and Expectations: Build a strong relationship with the CEO and clearly define expectations for the role. This includes understanding baseline requirements and aligning on strategic priorities.
- Assess Organizational Readiness: Evaluate the company’s appetite for change, investment, and growth. Unnikrishnan advises, “You have to do a little bit of breadcrumbing when it comes to strategic investment and M&A. Find out if they’re ready to take a strategic path and make investments.”
"I make sure that I'm very up to date on the metrics that matter for our business, even if they're normally owned by our finance or business teams, because I need to understand that to be able to articulate, be nimble enough, be agile enough as we go through the day to day." – Chesin
Practical Tips for Success
To excel in the CSO role, consider the following practical advice:
- Develop a comprehensive approach to market analysis.
- Stay informed about industry trends and broader economic factors through podcasts, financial publications, peer networks, and reputable news sources.
- Create and maintain a streamlined dashboard of key business metrics to inform strategic decision-making.
- Consider allowing your strategy team members to dedicate 10-20% of their time to self-directed projects, fostering innovation and fresh thinking.
- Establish a regular cadence for strategy development and review, typically on an annual basis, to drive meaningful transformations within the organization.
"I think if annual cadence doesn't exist... You kind of have to push to say that probably won't give you the kind of transformations you're looking for, right? So, you do have to decide how you're going to set up the right cadence." – Unnikrishnan
By following these best practices and insights, new CSOs can position themselves and their strategy offices for success, driving long-term value and growth for their organizations.
Episode Guest Bios
Eric Chesin: Chesin leads Anywhere Real Estate’s Strategy Office. In this role, he oversees the development and execution of the company’s corporate strategy and leads a team directly responsible for executing the firm’s most strategic pilots, projects, and partnerships. His team works across the company’s four business units and five strategic programs, leveraging the full scale and power of Anywhere Real Estate to better serve its affiliated real estate agents. Chesin joined Realogy (now Anywhere) in January 2017 with a background in disruptive innovation and management consulting. At McKinsey & Company, he served industry leaders on strategy and growth across Media, Travel & Hospitality, Technology, Finance, and Consumer Goods & Services. He has also served startups and early-stage companies both directly and through his boutique consulting firm, bringing both new products and new businesses to market and specializing in agile development, piloting, and in-market testing. Chesin earned his bachelor’s degree from Harvard University in 2002 and holds both an MBA from Columbia Business School and a JD from Columbia Law School.
Roopa Unnikrishnan:Roopa is SVP of Strategy and Corporate Development for IDEX. She is responsible for leading enterprise strategy and the corporate development (M&A) function. In this role, she helps to build strategy and business development capabilities for IDEX. Roopa has more than 20 years of corporate strategy experience across a variety of industries, through a mix of consulting roles and corporate leadership positions. Most recently, she served as Chief Strategy Officer for Vontier, a global industrial manufacturing company focused on smarter transportation and mobility. Previous strategy positions have included roles with Harman International, Citi, BlackRock, and Katzenbach Partners – which was formed by past members of McKinsey & Co. consulting. At Pfizer she also stepped outside her traditional strategy and innovation roles to lead the Talent and Organization capability for the pharmaceutical division. She often serves as a professional coach and is the author of the book, The Career Catapult.
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