Strategic Conversations

Learn what a fractional chief strategy officer does, when to hire one, and how the role helps leadership teams align priorities and execute better.

For me, Strategy is a deliberate, iterative, and continuous process of aligning values, capabilities, and resources, given a market/context, to create and sustain a chosen growth path toward an aspirational future. Strategy is therefore a function, not a plan or a project. By definition, “function” has several meanings, each of which illustrates what strategy is. As a noun, it denotes the job to be performed and the purpose of something. In mathematics, a function maps inputs to outputs, revealing relationships between resources and results. In computing, a function is a code block that executes a specific task — print, insert, delete, and so on. A function also refers to a gathering or social event. As a verb, to function simply means to perform, to carry out what needs to be done. Taken together, function implies purpose, continuity, community and internal execution. In contrast, projects are time‑bounded, temporary, and tend to adopt a finite mindset rather than a growth mindset. They usually run parallel to day‑to‑day operations and are often executed individually or by ad hoc teams. For strategy to deliver the growth path it should, it cannot be an ad hoc, time‑bounded plan. It must become part of the company’s day‑to‑day DNA. When asked about the deliverables of a strategic plan, presentations and documents often come to mind; when asked about the deliverables of a strategic function, look instead to changes in daily operations — new mindsets, increased capacity, coherent organizational structures, added features, new products, captured market share, market expansion, and M&A activity, among others. The strategic function incubates initiatives that drive operational change and embeds them into day‑to‑day activities to set the course for the company’s target growth trajectory. Lasting growth arises from internal transformation, not from peripheral efforts that never become part of the organization’s core operations. If strategy is not treated as an ongoing function, it will eventually revert to a finite, low‑value‑creating task. -Josean Arroyo Pont Co-Founder, Sinfonica Strategies

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Some say, “Don’t follow your passion, follow your talent.” While originally aimed at individuals, this principle is equally applicable to organizations. Today, many companies, particularly private ones, struggle to clearly define their core “talent.” They often lack a fundamental understanding of what truly differentiates them in the marketplace. A company’s talent is the foundation of its existence and competitive advantage. Periodically, organizations should pause and engage in entrepreneurial reflection. Executive teams should revisit the entrepreneurial process their founders undertook, while imagining they are currently in a similar early-stage process, asking themselves: What is the idea being developed? What problem are we solving in the marketplace? Why will customers choose us over others? When it comes to strategy, a company’s core talent must be at the center. Developing a coherent strategic direction is challenging without a clear understanding of what the organization does best. Strategy should leverage a company’s strengths, guiding capital allocation toward initiatives that maximize shareholder value. Companies that lack clarity about their core talent often misallocate resources to projects that fail to deliver expected returns. While some of these investments, “home runs”, may generate short-term gains, they rarely contribute to sustainable value creation and often detract from the company’s core competencies. Trophy investments are often a misstep in this regard. Many organizations, both private and public, engage in acquisitions that appear glamorous and generate buzz but, in reality, often lead to value destruction: diluting margins, weakening balance sheets, and adding unnecessary pressure on management and staff. Had these companies conducted a thorough “what is our core talent?” assessment before executing such transactions, many of these poor investments could have been avoided. Remember, your true talent is not just what you believe you're good at, but what you are actually being paid for. -Josean Arroyo Pont Co-Founder, Sinfonica Strategies

Josean Arroyo Pont explains why growth does not arrive with January 1st. It comes from strategic change, capacity, discipline, and clear decisions.