The Strategy Office as a Talent Incubator: Lessons from Southern Glazer’s Office of Strategic Management

In most corporations, the strategy office typically focuses on high-level strategic planning and execution. However, Southern Glazer's Wine & Spirits Office of Strategic Management has taken an innovative approach by expanding the role of its strategy office to include talent development and distribution. This unique model offers valuable insights for chief strategy officers and strategy leaders looking to enhance their impact and create lasting value.

In a recent episode of The Chief Strategy Officer Podcast, we spoke with Southern Glazer’s head of strategy and two leaders of the OSM. They discussed the roles the strategy office has taken on to build an enduring strategic advantage.

• Stephen Von Oehsen is the Senior Vice President of the OSM. He is also a Professor and Member or Dean’s Executive Advisory Board at Florida International University’s Chaplin School of Hospitality & Tourism Management.
• Sascha Rubin is the VP of Strategy and Business Development.
• Kyle Weiss is a Senior Manager in the OSM.

Listen to the episode here.

In the episode, we cover:

• The surprising roles the OSM plays, including why and how they became an incubator for talent and the unexpected benefits of taking on this role.?
• How Southern Glazer’s thinks about managing the culture of the OSM and how the culture differs from typical strategy offices and consulting firms.?
• The phases through which their strategy office evolved to adapt and expand its impact.
• Why they decided to launch what they call “Extended Enterprise Strategic Services,” through which they consult not just to the company but to partners, and how they manage consulting activities.

Key questions explored:

• (3:00) Introductions
• (5:41) How did you realize the strategy office could become an onramp for distributing talent internally?
• (7:50) How does the interviewing, onboarding, and working experience at Southern Glazer’s compare to consulting companies or other organizations???
• (10:45) How do you identify top talent that will grow with the organization?
• (13:16) What are the benefits of sending alumni of the OSM out in the organization?
• (17:00) What unique capabilities did your strategy office need to develop that set you apart from a traditional consulting firm? ?
• (23:53) The idea of doing external consulting work is foreign to most corporate strategy offices. How do you assess whether to do internal or external consulting?
• (24:54) Can you share an example of the business rationale for engaging in internal-external consulting work?
• (28:15) How do you overcome the potential perceived misalignment of interests?
• (31:41) How do you leverage your expertise in managing external strategy consultants to the benefit of the company?
• (35:55) What is one piece of advice you would give to fellow strategy leaders?

"People are our most strategic and important asset. Hire the best, compensate them fairly, empower them, and then get out of the way." – Harvey Chaplin (1929-2024)

The Strategic Importance Of Talent

Southern Glazer’s approach to talent management is rooted in the philosophy of their late chairman Harvey Chaplin who said: “People are our most strategic and important asset. Hire the best, compensate them fairly, empower them and then get out of the way.” Von Oehsen and his team have embraced this idea, focusing on building a diverse and talented team whose individual purposes align with the company’s mission. At the time of writing, the OSM has a 85% retention rate, less than 1% attrition rate, and over 20 alumni members working across the organization.

Beyond Traditional Hiring Criteria

The OSM’s hiring process stands out for its human-centric approach. Candidates interview with every member of the strategy team, allowing for a comprehensive evaluation of not just skills, but also cultural fit and long-term potential. Von Oehsen himself shares the company’s vision with candidates and listens to their career aspirations, emphasizing the importance of alignment between individual and organizational goals.

While many companies focus solely on a candidate’s ability to do the job and fit within the team, Southern Glazer’s OSM adds a third dimension: purpose alignment. Von Oehsen recommends that fellow CSOs consider three key questions when hiring:

1. Can the candidate do the job?
2. Do we want to work with them?
3. Does the individual’s purpose fit with the company’s purpose?

This approach helps ensure not only short-term success but also long-term retention and career growth within the company.

"That has been a key differentiator. I recommend my fellow CSOs think about not just their capability set, not just how they fit with our way of working, but also how is this going to feed them over time? Because that's the key for retaining people in the long haul."

Rotational Nature And Diverse Exposure

Once on board, OSM team members benefit from a rotational structure that exposes them to various projects, functions, and leadership styles across the organization. This diverse experience helps develop well-rounded strategists who understand the business from multiple angles.

Creating An Extended Strategy Team

One of the most significant benefits of the OSM’s talent development approach is the creation of an “extended strategy team” throughout the organization. With over 20 OSM alumni now working in various roles across Southern Glazer’s, the strategy office has allies and ambassadors throughout the company. This network facilitates easier execution of strategic initiatives and creates a common language and toolkit for addressing business challenges.

The Evolution Of The Strategy Office

Southern Glazer’s OSM has evolved through several stages, each focusing on different aspects of the business:

1. Stage One: Developing high-potential talent and documenting the strategy to drive top-line growth and market expansion.
2. Stage Two: Building distinct competitive capabilities in marketing, selling, and service.
3. Stage Three: Becoming the internal partner of choice for transformations, including leading change management for major initiatives.
4. Stage Four (current stage): Developing the 2030 Company Purpose, Vision, and Strategic Pillars. The OSM’s scope now includes developing and executing explore and expand strategies internally and externally.?

"Our team's scope now includes what we consider essential to be a leading distributor for the future. That means developing and executing explore and expand strategies internally and externally."

Extended Enterprise Consulting Services

An uncommon aspect of Southern Glazer’s OSM is its “extended enterprise consulting services” function. This involves engaging with major suppliers in tandem with internal consulting for dedicated divisions. This multi-dimensional problem-solving approach addresses complex issues that span the company’s ecosystem, typically handled by costly external consultants in other organizations.

When external consulting is necessary, the OSM leverages its members’ consulting experience to effectively source, partner with, and transition work from these firms. They request case studies, ensure continuity of personnel, and track hours as if they were an external firm themselves, maximizing the value of these engagements.

"Oftentimes, our team is tapped when there' are opportunities for improved ways of working between our internal teams and our suppliers. These problems are typically multi-dimensional and lack a single obvious solution that can be handled under one roof and with one group."

Advice For Aspiring Strategy Leaders

For those seeking strategy roles, understanding the breadth of a strategy team’s exposure to the rest of the organization is crucial. The most impactful work often comes from teams with wide-ranging influence and connections across the company.

In conclusion, Southern Glazer’s innovative approach to talent development within its OSM offers valuable lessons for strategy leaders. By focusing on purpose alignment, diverse exposure, and creating an extended network of strategic thinkers, companies can build a more resilient and effective strategy function that delivers lasting value to the organization.

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