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Having a chief strategy officer - loosely defined as the senior executive whose main responsibility is to ensure that execution flows from strategic planning - gives companies an edge over those whose organisation design, particularly at the top, has not yet evolved in a similar direction.

Companies are starting to add CSOs to their management teams for a variety of reasons. First, CEOs need the help to be on top of all parts of the business - even when it is something as important as strategy execution.

Further, strategy development has become a continuous process, and successful execution therefore depends more than ever on rapid and effective decision making.

Finally, centralised control of execution often breaks down when maverick line executives define strategy according to their own plans and interests.

Breadth and depth of experience 

In this environment, the CSO often confronts companywide issues that were once the sole responsibility of the chief executive.

The typical résumé of a CSO suggests the breadth and depth of experience necessary for success: a string of high-profile positions, in a variety of companies and in a wide range of industries, organisational cultures and geographic locations.

This experience and unique positioning at the top also enables the CSO to offer perspectives and ask questions that other senior executives can't or won't.

At the same time, the CSO must also ensure that the top ranks maintain the right market focus so that strategic initiatives don't stall and business opportunities - a key to market position - don't get lost.

In some cases, the CSO title denotes "traditional strategic planner", a vice president–level executive whose authority over execution is limited.

In other cases, an executive with a relatively unassuming title - say, "vice president, business planning" - may be fulfilling the demanding CSO role as we define it.

Short, medium and long-term benefits 

More commonly, executives in established roles are also being asked to take responsibility for strategy execution.

As companies continue to refine their expectations about strategy execution, the role—and the title—of the chief strategy officer remains under construction.

As companies increasingly bank on the quality of the top management team as a competitive differentiator, they need to think in innovative terms about that team's design and construction.

We have identified clear short, medium and long-term benefits for companies that name strategy chiefs - advantages that justify the costs of restructuring the top of the organisation.

From day one, the strategy chief becomes the "go-to" person, the executive who can provide immediate answers to important questions.

In the medium term, CSOs build world-class strategy development and execution capabilities within the company.

Effective succession-planning tool 

In fact, many strategy chiefs are helping their companies compete on organisation design by creating departments specifically for that purpose, hiring people with strong strategy-related skills and competencies (in business development, competitive analysis and M&A, for example).

CSOs also ensure that the capabilities they help to develop are implemented by managers and integrated throughout the organisation.

In the long term, the role of top strategy executive can become an effective succession-planning tool.

As Krishnan Rajagopalan, managing partner at executive recruiter Heidrick & Struggles, told us, "People take on the chief strategy role because they want to run the business sooner or later."

Finding someone with the skills and experience needed to develop strategy, translate it for people across functions and business units, and drive organisational change can be a tall order.

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