The rise of the new C-suite titles and why they matter

KEY TAKEAWAYS

New job titles bring softer skills sets to an organisation, bridging knowledge gaps and helping enterprise transformation take place.

• The CHO role is to help employees understand the meaning behind their work: the purpose.
• New executive functions and titles arise in companies that need to be more human and speed up the flow of ideas.
• Any new C-level title should be a business partner with a voice at executive board level.
• IT is not a support function. Digital and data security are cornerstones of protecting brand identity.

But because today’s era of chief internet evangelists and chief happiness officers (CHO) is unprecedented, it is relevant to ask what is real and what is superficial? How many of these new titles are really needed? Are we inflating boardrooms with very specific technical or functional expertise, when all that really matters are leadership and business acumen?

To answer these questions, we need to understand what lies behind the rise of the new C-suite titles. Companies are changing rapidly; becoming more customer-centric, diverse, millennial and empathetic in mind set, and increasingly driven by data that shows specifically what customers and employees want. But one thing has remained constant: the importance of ideas. Something only human, rather than artificial, intelligence can contribute.

And, as Jon Goldstein, Regional Director of Southeast Asia and India, Page Executive, explains, the exploratory trend for new executive functions – regardless of the particular nomenclature – is really just an acknowledgement that companies need to be more human than ever and speed up the flow of ideas.

“The more C-titles a company has, in theory, the faster it can pitch the CEO ideas and act on them,” Goldstein says. “You don’t have hierarchy getting in the way, wanting to control. The new C-titles can take control of ideas, own them, take them directly to the decision maker, speed up processes and be more reactive”.

New C-titles can take control of ideas, own them, take them directly to the decision maker, speed up processes and be more reactive.

NEW ROLES NEED NEW SKILLS

Many of the newer titles seen in the C-suite relate to specific business areas not focused on previously, such as customer experience or diversity, or not on the radar of the top table, namely digital and data roles. The skill squeeze has been laid bare by the rapid growth of technology and the changes it has brought to business.

Goldstein comments: “I placed a Chief Diversity Officer recently. Titles like this are good; they show companies recognise the importance of making the leadership board truly representative. The issue is not what title people have, but whether they have a voice. Many companies have new titles, but are they on the executive board making decisions? Success comes when companies have these titles and allow the people holding them to genuinely influence business outcomes.”

Titles like [Chief Diversity Officer] are good; they show companies recognise the importance of making the leadership board truly representative. Success comes when companies have these titles and allow the people to influence business outcomes.

This notion is most clearly demonstrated by looking at the difference between the more established CTO (Chief Technology Officer) and the new breed of CDOs (Chief Digital Officer) and CISOs (Chief Information Security Officer).

CTOs often come from an IT background and look after infrastructure, and so can be less individual, less unique, and perhaps, add less human value in the sense of ideas. On the other hand, CISOs and CDOs are typically more highly paid and perceived as more important than many other CxOs. Why? Because of their value.

Goldstein explains this change as an understanding of the importance of digital roles in business. “Roles like CDO or CISO are, from a data and security perspective, absolute necessities. What you see with this ‘C’ is the importance they have in the company – IT is no longer simply support, they are business partners. The digital function and data security are almost more important than your product, because how you protect yourself secures the identity of your brand.”

HAPPINESS IS A DRIVING FORCE

In a similar vein, roles like Chief Privacy Officer and Chief Transformation Officer can be more clearly understood to have a basis in contemporary business need. But what about happiness? Chade-Meng Tan (Google), Alexander Kjerulf (WooHoo Inc), and Laurence Vanhée (Belgian Social Security Minister) all hold or have held the title of CHO.

What skill sets and performance indicators did they bring to their companies and countries? Their focus on employee wellbeing is easily quantifiable in terms of decreased turnover, burnout, absenteeism and other measurable factors. The focus on happiness is also a direct counterbalance to other management techniques popularised in the ‘80s and ‘90s, such as activity-based costing.

So while it can sound superficial, largely because it is unfamiliar and focused on a human emotion rather a company function, the thinking behind a CHO role is, in fact, far more profound.

The point of a CHO is to create a place for humans in a system not made for them.

As Alexander Kjerulf, founder and CHO of WooHoo Inc explains, the role of the happiness officer is, in itself, transformational and very grounded in the reality of improving retention and employee feeling.

“No job is perfect and only creates positive reactions, but research indicates to thrive, humans require positive emotions over negative,” Kjerulf says. “Positive emotions drive employee loyalty more than traditional retention tactics. Basically, if your job makes you happy you will stay longer, even if you could leave for a better salary elsewhere.

“Happiness is an inspiring term compared to engagement or wellbeing; it’s relatable. Researchers use happiness when talking in layman’s terms, because everyone understands it. No expert definitions are needed because you know if you are happy at work,” Kjerulf explains.

THE TRANSFORMATIONAL OFFICERS

From a manufacturing perspective, transformation involves the whole company. It needs leaders that can deliver this change, ensure the workforce understand it, and that the company can profit as a result. As Goldstein explains, “CTOs are in manufacturing companies to implement operations change. Why? Because they need to become an ‘Internet of Things’ producer, an automated and extremely efficient production hub.

“However, many companies don’t want change and are scared of implementing it. This is prime CTO territory, when a company recognises there is unused capacity and needs to unleash it.”

Many companies don’t want change and are scared of implementing it. This is prime CTO territory, when a company recognises there is unused capacity and needs to unleash it.

The trend for expanding the C-suite seems to be grounded in a logical, strategic assessment of contemporary commercial reality. But it would be foolish not to acknowledge the very real risk of title inflation.

The C-suite team needs to be a business partner, bringing leadership as well as operational expertise to the company leadership. So, how grounded in reality is, to take one popular new example, a Chief Scrum Master (CSM)? Although the title presents the role as serious, is this really a glorified team leader? Do CSMs bring leadership and additional value across the whole enterprise?

In terms of skills, the CHO brings existing skills from the top table to the role, but with a new mandate: to help employees understand the meaning behind their work, the purpose.

As Kjerulf points out: “The CHO job is both inspirational and practical. CHOs can be anyone, often it’s someone from HR, but at a client in Denmark, it’s the Head of Legal. So it is not the CHO’s job to run around making people happy all the time. It’s a project manager role, planning initiatives to make people happier – such as training, events, celebrations – activities that help people see the purpose of what they do.”

This is crucial. Purpose is increasingly important in an era where people must reassert their primacy over AI, in which millennials are set to become the dominant demographic in terms of workforce, leadership and customer base.

BRIDGING GAPS IN AN ENTERPRISE

In the end, the growth of new nomenclatures in the C-suite points to many things. There is growing diversity in the workforce in general and this needs to be reflected at the top. Critical stakeholder pressures, such as accountability and threats to organisational reputation, require C-level leadership. Technology has led to greater uncertainty thanks to disruptors and changing customer demands.

So, these new roles are there to help bridge gaps in an enterprise, integrate silos and ensure cross-functional work takes hold. They are the forefront of adaptability.

As Goldstein concludes, “Any role with a C-level title – HR, Technology, Data, and so on – has to be a business partner. The requirements are much more than for a job, you can’t just tour guide.

“If a business can invest in the function and make people more engaged, happier and productive – driving revenue and improving the bottom line – that is the definition of good leadership.”

Any role with a C-level title has to be a business partner. You can’t just tour guide. If business invests in the function, making people more engaged, happier and productive... that is the definition of good leadership.

KEY TAKEAWAYS

New job titles bring softer skills sets to an organisation, bridging knowledge gaps and helping enterprise transformation take place.

• The CHO role is to help employees understand the meaning behind their work: the purpose.
• New executive functions and titles arise in companies that need to be more human and speed up the flow of ideas.
• Any new C-level title should be a business partner with a voice at executive board level.
• IT is not a support function. Digital and data security are cornerstones of protecting brand identity.

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