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How millennials and Gen Z see the C-suite evolving in 2025

As the next generations of senior leadership, these professionals will influence how business will run in the future.

How millennials and Gen Z see the C-suite evolving in 2025
[Source photo: Pixabay]

Although every C-suite has core roles, other positions can come and go. We’ve seen new titles created over the past five years to address emerging strategic priorities—for example, the chief transformation officer, the chief digital officer, and more recently the chief artificial intelligence (AI) officer.

West Monroe, a business and technology consulting firm, recently asked 1,000 directors, vice presidents, and senior vice presidents aged 25 to 45 about the C-suite roles they expect to be phased in and out.

As the next generations of senior leadership, these professionals will influence how businesses run and evolve in the future and they have some interesting opinions.

Roles that will phase out: Roles that will phase in:
Chief transformation officer: 29%
Chief diversity officer: 13%
Chief digital officer: 9%
Chief AI officer: 40%
Chief information/data officer: 11%
Chief digital officer: 9%

After seeing these results, here are my conclusions.

Still transforming, but not solely by the chief transformation officer

Many companies designated a chief transformation officer role to oversee large-scale, long-term change. Now, nearly one-third of respondents see this role going away. To me, this is compelling. Companies aren’t done transforming, but today’s leaders have less patience for intensive efforts that take months or years.

As physical and digital worlds become increasingly intertwined, companies must be able to test and learn, fail fast, and pivot quickly. This mindset shift, combined with new technology and volatile economic conditions, drives leaders, boards, and investors to expect an impact in weeks rather than months. With this emphasis on rapid and continuous innovation, accountability for change cannot reside in one role. All C-suite leaders must be fully focused on—and equally accountable for—transforming the business.

AI is hot now, but the chief AI officer won’t be for long

AI has significant implications for the future of work. Many executives believe they must urgently invest to remain profitable and competitive, yet they are uncertain about how to use AI to elevate performance.

Having a dedicated leader is critical at this stage. It shows the market and organization that AI is a priority and rallies people around the changes required. It also provides the expertise necessary for anticipating new trends, defining strategic direction and the products to be elevated, operationalizing initiatives, educating the organization, and driving consistency in the application of AI.

However, the leader must be in step with leaders across the entire organization ensuring AI is solving business-specific challenges. AI for AI’s sake will lead to no value.

That said, as AI becomes more infused in every part of the business, I believe the chief AI role will become integrated into other roles, and/or transition to the chief data officer. The focus, then, will shift to the next emerging technology.

Accountability for DEI is expanding to all parts of the business

The next generation doesn’t see this role phasing out because it is no longer a critical business issue. Rather, they understand that teams organization-wide with diverse perspectives produce better outcomes and create value faster. To thrive, teams require an inclusive and equitable environment—thus demanding these principles be woven into an organization’s cultural fabric. While leadership ratifies the values that define culture, creating an environment that brings that culture to life is everyone’s responsibility. At my company, West Monroe, DEI is a strategic imperative and the responsibility of everyone in our C-suite. While West Monroe has not had a C-level leader for this area, our commitment to DEI is strong because each team brings those tactics to life.

The need for a chief digital officer depends on digital maturity

Interestingly, respondents have polarized views about the chief digital officer. Equal percentages see this role being phased in and phased out. I believe the need for this role depends on a company’s level of digital maturity.

For organizations early in the digital journey, having coordinated C-level oversight is very important. A centralized view across the organization ensures that the multitude of initiatives are connected and accretive. But for those several years into the digital journey, with digital capabilities embedded in all parts of the business, all C-suite leaders should share accountability. For example, chief marketing officers must engage customers in a hyper-digital world, chief operating officers need to employ emerging technology to streamline processes and take out costs, and chief human resources officers must refresh employee experiences to meet talent expectations. While these leaders are responsible for reimagining business for a digital world, they should still partner actively with the chief information officer to manage digital investments efficiently across the organization.

The chief data officer is here for the long haul

The chief data officer was the second most likely role to be phased in (11%). At the same time, 7% of poll respondents believe it will be phased out. With companies accumulating and using ever-greater volumes of data, and with regulations becoming stricter and more complex, C-level governance will remain a critical point of alignment with business strategy. Additionally, the ability to identify and deliver financial value is increasingly correlated with how well companies gather, analyze, leverage, and monetize data, and data will impact the effectiveness of all investments in emerging technology. I believe the 11%—this role is here to stay.

More Americans are reaching retirement age than ever before, and this is ushering in a new wave of agile and forward-thinking leaders prepared to adapt quickly to change.

Business transformation—digital or otherwise—is never “done.” While some emerging areas of focus require leadership at the highest level to develop traction, impact is ultimately much greater when accountability spreads to everyone.

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