Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
Issue link: https://fhpublishing.uberflip.com/i/851032
26 | 21ST - 27TH JULY 2017 | UTILITY WEEK Operations & Assets Market view S pecialist expertise has never been more valuable at executive level. The busi- ness landscape is becoming increas- ingly complex – frequent political and economic curve balls, our thirst for instant information, and the continuing march of technology have created a challenging envi- ronment for companies large and small, with the pressure evident in the boardroom. Issues, such as the recent high-profile cyber security breaches, affected organisations across the world and le business leaders perplexed as to what they could do to pro- actively address challenges like this, which have previously been unforeseen. The danger for any management team in this climate is focusing a disproportionate amount of effort on tackling "here-and-now" challenges and neglecting to future-proof the business. Executives must consider how to manage new challenges effectively, ensuring that due attention can be spent looking to the future. To do this, management teams are increas- ingly reassessing the expertise within their "C-suite" (the group of most senior managers whose job titles tend to start with "chief "). Are their people in possession of the skills needed to tackle new and emerging chal- lenges? Is undue time being spent on issues that perhaps could be better handled, much more quickly, by someone with specialist expertise? Recent discussions with senior manage- ment teams and non-executive directors have highlighted a shi taking place, with more of a focus on specific skills. As a result, we are likely to see the introduction of new C-suite roles requiring specialist expertise, and also the recruitment of non-executive directors based on such skills rather than focusing on previous "big ticket" roles. Here are some of the new C-suite roles we could see in the boardroom. Chief customer officer (CCO) There is a thirst for instant information, and the proliferation of social media has given consumers huge power. C-suite executives are acutely aware of customers' ability to influence the perception of their brand, and their power to create chaos, as evidenced during the recent US American Airlines debacle. With multiple marketing avenues and touchpoints on the average brand's cus- tomer journey, smart businesses will begin to open their eyes to the benefits of a C-suite customer champion. Chief automation officer (CAO) At SXSW, Microso's Kate Crawford spoke about artificial intelligence (AI), saying: "We have to make artificial intelligence systems more transparent and accountable." Her thoughts echo the concerns of many execu- tives who recognise the ability of AI to revo- lutionise their business, but are wary of its potential to create unforeseen challenges. As the technology continues to develop, driven by the likes of Facebook, Amazon and oth- ers, we are likely to see the introduction of specialist AI experts to the boardroom table. Chief freelance relationships officer (CFRO) Beyond the gig economy and its intricacies, there is an important change taking place with the growth in self-employment. It is a change that has seen huge benefits to busi- nesses which have embraced this new, more flexible way of working, relying on a net- work of talented, experienced freelancers. The trend is predicted to increase, with co- working spaces popping up in cities across the country to keep pace with demand. How- ever, executives are mindful of the fact that much of their talent lies outside the busi- ness, and are acutely aware of the impor- tance of keeping freelance talent happy. As the preference for self-employment gathers pace, we are likely to see the introduction of the CFRO into the C-suites of larger com- panies, tasked with ensuring their business retains top talent. Chief cyber security officer (CCSO) Cyber security is not a new issue, but is cer- tainly a growing one. Yet despite 75 per cent of UK businesses admitting that cyber secu- rity is a priority for their senior management, only 3 per cent employ a specialist cyber security officer, with responsibility instead given to either the CEO or CFO. Furthermore, just under half of UK busi- nesses identified at least one cyber security breach or attack in the past 12 months, yet only 11 per cent have a cyber security inci- dent management strategy in place. New York recently introduced cyber security accountability for Wall Street executives; we can expect the UK to follow suit, with the more commonplace introduction of the CCSO at board level. Chief futurist officer (CFUO) We have long been in awe of the futurist, their ability to study the future and make predictions based on mathematical analysis, and their assessment of future trends. With continuing political and socio-economic developments and the advancement of tech- nology, we will see companies following in the footsteps of Google, Wired and Cisco, appointing dedicated futurists to the C-suite to provide powerful advice and counsel to senior management teams. Anne Watson, chief operations officer, In Touch Networks Upgrading the C-suite Companies need to rethink some of their most senior management roles to ensure the board is equipped to deal with the threats the modern business world can throw at them, says Anne Watson. Key points Companies need to view the horizon for potential threats rather than firefighting the latest crisis. Boards must consider taking on individu- als with specific areas of expertise, to augment their "big picture" thinkers. Social media is a game changer when it comes to brand management. Artificial intelligence will become a game changer in operations. Cyber security is a field in its own right, not just a branch of the IT department.