What: McKinsey reviews the role of the Chief Transformation Officer, an increasingly growing role in CPG and retail companies.

Why it is important: The IADS tackled some of the issues raised in this article in its 2021 White Paper about organisations. It is all about finding the right balance between organisational efficiency and avoiding adding layers and complexity into organisations.

CPG companies are under pressure to quickly adapt to new market conditions and transform both their business model and operations. They need to transform, and this is not just a fancy word, but a harsh reality requiring to build new capabilities which are foundational. McKinsey has polled 40 CTOs from the CPG industry in order to understand their role and their scope.

23% of them report to the CEO, and 86% came in 2020 or later. Since this is a new role, its scope is inconsistently defined across the board. Some have very specific finance goals, while others have broader targets to achieve, including a change in culture for instance. The role is challenging as the CTO “owns nothing but is accountable for everything”. McKinsey suggests to approach the role with 3 archetypes:

-    CTOs are responders (to a crisis, a setback) and triage, stabilize the business, by enabling rapid reaction forces,

-    CTOs are revitalizers, by adding emphasis on sustained and long-term change.

-    CTOs are reinventors, and contribute to shifting the business model.

While those archetypes are clearly defined (and synthetised below) the roles and profiles might significantly differ from one company to another.

McKinsey identifies the following skills for successful CTOs:

-    Has a business acumen,

-    Is able to think outside of silos,

-    Can build trust and respect,

-    Is curious and humble,

-    Is confident challenging the status quo,

-    Brings out the best in others,

-    Keeps the organization’s energy up.

Of course, full support from the CEO is expected and this also includes the possibility for the CTO to engage all employees.

![McKinsey

Meet the newest member of the C-Suite: the Chief Transformation Officer