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Creating new job titles has become something of a competitive sport in retail in recent years. Digital directors gave way to the multi- or omnichannel director, and now the chief customer officer is displacing the marketing director. All the titles were created in response to the digital disruption that has shaken the sector to its core, and now we are seeing the emergence of the first generation of chief growth officers (CGO). Like most trends, this one started at major US consumer goods players. Now it’s about to hit the UK. The backdrop to the creation of this role is sluggish categories, rising operating costs, digital disruption, activist investors and a highly empowered customer, not to mention increasingly interventionist governments, particularly in Britain.

A typical mandate for a CGO will look something like this: transform the business for profitable growth, challenge the status quo, drive efficiencies, back disruptive innovation and build the right capability for the future.

The CGO must be brand agnostic in order to focus the business on where the market is going rather than on where it has been. Their agenda must be longer-term, stretching over a three to five-year period, as opposed to short-term revenue targets. The CGO must be given licence to challenge the status quo, whether that’s breaking down silos, divesting an underperforming brand or backing a growth opportunity. Sally Grimes, CGO at Tyson Foods, summed up her remit: “I am charged with thinking the unthinkable.”

Our analysis of the first generation of CGOs (most of whom are in US consumer giants) show many commonalities. More than half (57%) were internal appointments and 71% have worked with the current CEO for at least seven years. All have come from a marketing background and held P&L responsibility while 86% have a consumer goods track record.

All put the customer at the heart of their decision-making, and must bring ambassadorial levels of persuasion to the table. Little wonder boards see the CGO role as a stepping stone to CEO but first they must think - then do - the unthinkable.

Kate Walsh is an executive director in the consumer practice of Russell Reynolds Associates

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