176. Redefining the chief transformation officer's role
Sep 18, 2023
auto_awesome
In this episode, Kevin Carmody, AD Bhatia, and Emily Rizzi discuss the role of Chief Transformation Officer and how it should be redefined. They explore the importance of an influential style and the holistic impact of transformation. They also highlight the key responsibilities and inputs for a successful transformation, and discuss the different archetypes of CTOs. The hosts express gratitude and provide information for accessing more content on the topic.
The role of the Chief Transformation Officer (CTO) should be redefined beyond cost-cutting and encompass every aspect of a business's transformation, including strategic frameworks, growth, and organizational structure.
Successful CTOs possess characteristics such as objectivity, influence, curiosity, and a balance between support and accountability, and their responsibilities include coordinating the transformation, developing relationships with executives, and empowering line leaders.
Deep dives
The Role of the CTO in Transformation
The role of the Chief Transformation Officer (CTO) is often associated with cost-cutting, but this is a narrow view. The CTO should be a persuasive and influential leader, not just a hammer searching for nails. Transformation today encompasses every aspect of a business, including strategic frameworks, performance objectives, growth, cost optimization, organizational structure, and systems. Successful transformations often start with an ambitious goal and require top-level support and involvement. The CTO's responsibilities include convening and coordinating the transformation, developing relationships with executives, and empowering line leaders. High-performing CTOs are objective, influential, energizing, and have a clear focus on the transformation's big, bold goal.
Characteristics and Archetypes of Successful CTOs
Successful CTOs possess characteristics such as objectivity, influence, curiosity, and a balance between support and accountability. They are able to build trust and motivate teams while challenging and holding executives accountable. The role of the CTO can vary depending on the type and stage of the transformation, with archetypes including responders, revitalizers, and reinventors. CTOs typically have a single-minded focus on the transformation and may not have multiple functions reporting to them. A strong cultural change and engagement of all employees are crucial enablers for transformation success, while competing priorities and lack of a clear goal can hinder progress.
Key Factors for a Successful Transformation
Before launching a transformation program, the CTO should have unwavering support from the CEO, a license to engage all employees, a well-oiled execution engine, a robust incentive program, and a focus on the softer aspects of the transformation. Involving all employees as initiative owners and building a culture of engagement and motivation are essential for sustainable impact. A clear goal, strong leadership support, effective execution, and appropriate incentives contribute to the success of a transformation. The CTO should prioritize engaging the organization, facilitating change, and driving the desired outcomes.
The Evolving Nature of Transformations and the Role of the CTO
Companies should not underestimate the need for a dedicated CTO during a transformation, as they provide objective leadership and coordination. Transformations should have a clear, ambitious goal and involve all employees, with the transformation becoming an integral part of the company's day-to-day operations. While transformations can evolve and companies may move between different archetypes, the role of the CTO remains crucial throughout the process. The CTO needs the support of the CEO, a focus on building new capabilities, and must balance being a service provider and an enforcer. Competing priorities and dilution of the transformation's focus can hinder progress.
The role of chief transformation officer (CTO) is often linked with cost-cutting. In this episode, we discuss how this is a misleadingly narrow view and explain why and how CTOs should correct that misconception and redefine the role. Our guests are Kevin Carmody, a senior partner in our Chicago office, AD Bhatia, a partner in our New Jersey office, and Emily Rizzi, an associate partner based in our Pittsburgh office.
