The C-Suite is in bad need of a facelift. As technology advances, regulations change, and cultural norms shift, traditional, high-level positions are showing their wrinkles.
Dennis Carey, vice chairman of executive search firm Korn/Ferry International, believes several new C-Suite titles will be created in the next three to five years. Companies are facing "an onslaught of challenges," he says, "which in some cases have no historical precedent."
John Wood, vice chairman and global managing partner of the CEO and board practice at Heidrick & Struggles, another executive search firm, agrees. "[Some companies] have come to the conclusion that the content of these [new] areas justifies the creation of new titles, eclipsing the tried and true notion that specialists should be reporting to the generalists."
In light of this transformation, Fortune talked to Carey and Wood and created a list of the seven executives that will round out the new C-Suite. It remains to be seen if these new titles will stick or see the light of day. Regardless, the "transformation to a new C-Suite structure is not here yet," says Carey. "But it is coming."
Chief Innovation Officer
Companies have always needed innovation. They cannot thrive without new ideas, new products, and new services. But with the rise of the Internet and the emergence of social media, they are now faced with a new breed of challenges on how to engage their customers.
At least five firms in the Fortune 500 saw these needs and created a new executive role -- chief innovation officer -- to find solutions for those new challenges. A recent example: PepsiCo's CIO, Mikel Durham, created a "Social Vending System." With the push of a button, customers can buy a soda for a friend who lives across the world.
As technology expands and barriers between customers and companies crumble, chief innovation officers will be the keys to keeping those barriers down and customer interest high.
Chief Cloud Officer
Cloud computing, aka the "hard drive in the sky," is going to cause yet another major shift in the way we work and live. Data will no longer live on individual desktops or laptops; it will be stored on an outside server waiting to be called up on demand.
In the next few years, Carey sees companies creating the new position of chief cloud officer. As more important and private data is stored and shared in the cloud, it will need to be managed, monitored, and protected.
Some CCO responsibilities will overlap with those of a chief information officer, Carey says, but the inevitable growth of the cloud will create the additional need for this executive at any company that wants to keep its information safe.
Chief Risk Officer
In the crisis of 2008, many financial companies struggled to cope with the messes they faced. Looking to outside consultants for help, they slowly got back on their feet, and many realized the need for a chief risk officer.
"Ten percent of Fortune 500 companies now have a chief risk officer, double from what it was less than a decade ago," says Carey. Rather than allowing executives to gamble when making business decisions, a CRO analyzes the risks and determines if the moves are advisable. CROs also help manage the consequences of a risk gone awry, as well as ensure that business decisions adhere to new and stricter regulations.
Reporting directly to the CEO, the chief risk officer has great clout in the decision-making process of the company. According to Carey, CROs used to report to CFOs. But as the economic downdraft worsened, they were given more power, giving the title even more value within the C-Suite.
Chief Privacy Officer
From health records to financial records, the private data of a company is guarded by a chief privacy officer. Both employees and employers are protected by this executive.
The position has the responsibility of making sure a firm adheres to federal privacy laws and regulations, while maximizing the privacy rights of employees. Workers can also turn to a CPO to learn about their company's personal privacy laws concerning their data.
A number of Fortune 500 companies -- such as IBM and Proctor & Gamble -- have realized the need for a gatekeeper and have created CPO positions. As privacy breaches grow and thieves become more clever in breaching personal and business data, many more companies are following suit.
Chief Social Media Officer
LinkedIn, Twitter, Facebook: Social media has become more important to a company's brand than anyone could have imagined. John Wood believes a chief social media officer will be essential to many companies in the next three to five years -- if not sooner.
A CSMO would not only produce content for social media sites, but he or she would also train employees on how to use the platforms. In order to keep a company's brand intact and private data from being tweeted or posted to an employee's Facebook page, the CSMO would also educate workers on what is and is not appropriate to share.
Chief Talent Officer
Human resources consultants have been chanting the same mantra for years: Hire from within. Instead of looking outside a company for successors to high-ranking positions, many heads of human resources are now realizing they can mine for top talent from their own ranks.
With that new focus, Wood believes a Chief Talent Officer will become a staple of the future C-Suite. CTOs look within a company for skilled workers who are great candidates to succeed in top positions. A CTO then helps employees fine-tune their skills over time, grooming them for success so they can rise to the top.
Chief Perception Officer
During the financial crisis of 2008, corporate America took a beating in the media, forcing many companies to reevaluate and reshape the way the public saw them.
A new focus on strategy has created the need for a chief perception officer. It is not a reactive role, but a proactive one, in which the CPO works with the CEO to assess decisions before they're made, to see how they may affect the company's reputation.
In the end, the CPO is the standard bearer for a company's image to ensure that its values and those of its customers remain in line.
