A well-designed and effectively operated strategy office is crucial for organizational success. Drawing insights from Eric Goldstein, Chief Strategy Officer at TIAA, on the Chief Strategy Officer Podcast, we explore key principles for creating and managing a high-performing strategy function.
Key questions covered in this podcast episode:
- (2:30) Could you tell us a little bit about what you were doing before your current role and when you joined TIAA?
- (4:05) How does your CEO leadership think of the strategy office? What does it hold the strategy office responsible for?
- (5:15) What is your strategy? Because it sounds like the functions and the roles that you play adapt to the strategy.
- (8:03) TIAA offers a unique solution in a unique category (insurance). Do you mind talking to us about what your competitive advantages are or what your priorities are?
- (10:24) What is your point of view on centralizing or decentralizing the strategy office?
- (16:35) How did you build your strategy team? How did you think about who should be on your team and what reporting strategies should be?
- (21:25) Tell me a little bit about your team now. How many direct reports do you have? How are the teams defined?
- (23:49) What’s the role of the strategy office in setting organization wide KPIs and aligning those KPIs with the various operating committees or functions?
- (26:37) How do you maintain relationships with key stakeholders across the organization?
- (30:40) Put yourself in the shoes of a newly appointed CSO. What would be the top 3 things that you think she or he should be thinking about or doing to put themselves on a path to success?
- (33:22) Are there any specific tools or resources you’d recommend other chief strategy officers?
Defining Your Remit
For any new CSO, establishing a strong relationship with the CEO is the first order of business. Eric emphasized that this relationship is foundational to your success. “The most important thing I could say to any CSO is that you’re not the CSO. The CEO is the chief strategy officer. That’s the absolute truth,” Eric explained.
In his role at TIAA, Eric stressed the importance of understanding the CEO’s vision and aligning the strategy office’s goals with that vision. Without this alignment, even the best strategies risk falling flat. For new CSOs, this means prioritizing time with the CEO and understanding their strategic priorities.
Building a Credible Team
Building the right team is the second crucial step in establishing your strategy office. When asked what qualities he looks for in his team, Eric shared, “You need people with big brains and clean agendas. I can’t teach someone to be a good person, and I can’t teach them to be smart. Everything else, the industry knowledge, how the company works, that can be taught.”
Eric’s approach to team building focuses on finding talented individuals who are not only intellectually capable but also aligned with the company’s mission. This creates a team that’s not just skilled but also trusted by the organization, which is critical for a successful strategy office.
For a new CSO, this means ensuring your team members are aligned with the overall strategic goals of the company and can navigate complex organizational dynamics while maintaining integrity.
“We're held to the standard of driving this company to the right long-term business strategy. And to do so based on rigorous fact and logic-based analysis.”
Centralized vs. Decentralized Strategy
One of the key decisions for any strategy office is how to structure itself—centralized or decentralized. Eric’s experience at TIAA has taught him that there’s no one-size-fits-all solution. The right approach depends on factors like the diversity of business models and the maturity of the strategy.
“If you have diverse business models and you feel really good about the strategies, then decentralizing makes sense,” Eric explained. “But if the strategy isn’t fully developed or if the business models are more focused, then centralization is often the better route.”
At TIAA, Eric centralized the strategy office when he joined, recognizing that a more focused, corporate-level approach was necessary. Over time, as the strategy matured and was adopted across the company, they began to decentralize execution, creating more virtual teams that spanned different business units. This flexibility allowed the strategy office to guide high-level priorities while enabling business units to execute efficiently.
For new CSOs, the lesson is to assess your company’s strategy and business models. If they are well-defined, consider decentralizing certain functions. If not, centralization may provide the focus needed to drive success.
Developing Relationships
Maintaining working relationships across different business units is critical for any CSO. Eric pointed out that while the strategy office doesn’t execute directly, it plays a vital role in coordinating efforts across departments. He regularly engages with top executives to ensure alignment and collaboration, explaining, “We have direct relationships with every senior executive in the company across functions. I personally have regular meetings with every person in the executive committee.”
This constant communication fosters trust and ensures the strategy office is seen as a partner, not just an overseer. New CSOs should invest time in building relationships across the organization, not just with the CEO, but with other key leaders to ensure everyone is on the same page.
The Path to Success for New CSOs
As the episode came to a close, Eric offered three pieces of advice for newly appointed CSOs. First, focus on building a strong relationship with the CEO. Second, ensure your team is up to the task by selecting people with the right skills and values. And third, identify the biggest barriers to success and address them head-on.
By following these steps, you’ll be on the path to building an effective strategy office that can drive long-term success for your company.
"You'd better know who in the organization has interest in your strategy succeeding and who doesn't. You'd better have a strategy because the company has to be working like a machine, or it doesn't work."
Episode Guest Bios
Eric Goldstein: Goldstein serves as Chief Strategy Officer of TIAA and has responsibility for working with senior management to shape the creation and execution of the corporate strategy and corporate development efforts. He joined TIAA in 2018 from JPMorgan, where he spent twenty years, most recently as Managing Director and Head of their North American Insurance Mergers and Acquisitions practice. At JPMorgan, he led a broad range of advisory and capital raising assignments for insurance companies and asset managers including most recently: AXA Equitable’s $2.75bn IPO, Protective Life’s $1.2bn acquisition of Liberty Life and Hartford Financial’s $2bn sale of Talcott Financial. While at JPMorgan, he also worked with TIAA on both the Nuveen and EverBank transactions. Prior to joining JPMorgan, Goldstein was a consultant with McKinsey & Co. in the firm’s Financial Institutions Practice. While at McKinsey, he advised insurance companies and banks on both strategic and operational issues. He received his JD degree from Yale Law School and his undergraduate degree from Harvard University.
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